As the 2025 holiday season nears, Gen Z is cutting back on spending more than any other age group. A recent report from PwC shows that overall holiday spending in the U.S. is expected to drop by 5%, with Gen Z reducing their budgets by an eye-catching 23%. This is a big shift from last year, when they actually increased their holiday spending by 37%. Rising prices, job worries, and the added pressure of adult responsibilities are pushing young Americans to spend more carefully. While Millennials and Gen X are keeping their holiday budgets about the same, Baby Boomers expect to spend a little more this season. These changes show a clear shift in how different generations are handling money during uncertain economic times.

In September 2025, American consumers are feeling more worried about the economy, according to a new survey from the University of Michigan. The consumer sentiment score dropped to 55.4, the lowest it has been in four months. People are especially concerned about rising prices, unstable job markets, and how these issues are affecting their personal finances. Inflation has recently climbed to 2.9%, the highest in seven months, making everyday goods and services more expensive. Many families, especially those with lower or middle incomes, are feeling the pressure, and fears of a potential recession are adding to their anxiety. Global events and recent changes to U.S. trade policies are also making people uncertain about what’s next for the economy.