Teens are feeling the impact of inflation as they prepare for the holiday season, with many expressing concern over how rising prices will affect their ability to buy gifts. A new study by Junior Achievement reveals that more than a third of teens are worried about the financial challenges posed by inflation this year.
The JA Teens & Holiday Spending survey, which gathered responses from over 1,000 teens, found that 70% are concerned about inflation’s effect on their holiday shopping, nearly identical to last year’s survey result of 71%.
“Though we’ve seen some price stabilization, the anxiety about rising costs remains, especially among teens who have directly experienced price hikes,” said Ed Grocholski, Chief Marketing Officer at Junior Achievement USA.
Everyday Price Hikes Impact Holiday Spending
Samhith Padala, an 18-year-old freshman at UC Berkeley, shared that inflation is affecting both his everyday expenses and holiday gift shopping.
“Inflation has made it harder to buy items that used to be more affordable,” said Padala. “For example, candy, stuffed animals, gift wrap, and tape—things that used to cost $1 at a dollar store—are now 25 cents more. It adds up.”
Padala, who co-founded a media production agency at the age of 12, explained that these rising costs make it harder to balance his budget, particularly when he faces difficult financial choices. One of his friends, who works at a hotel, had to decide whether to buy his mom a birthday gift or pay for gas. Although Padala plans to continue buying holiday gifts for loved ones, he expects to spend more this year due to inflation.
Teens’ Holiday Shopping Budgets: Parent Funds and Part-Time Jobs
The survey also looked at how teens are funding their holiday purchases. About 74% of teens say they will rely on their parents or caregivers for holiday money, while 35% are planning to use their own earnings from part-time jobs or gig work to buy gifts.
When it comes to shopping habits, the survey found that 75% of teens plan to shop in physical stores this year, a slight decrease from 76% in 2023. On the other hand, 69% of teens say they will shop online, up from 67% last year. Grocholski noted that the trend of in-person shopping has been growing over the past several years.
“Having constant access to online shopping makes in-store visits feel like a special experience,” Grocholski said. “Teens are increasingly eager to explore physical stores and discover products firsthand.”
Overall Holiday Spending Trends Amid Inflation
It’s not just teens who are feeling inflation’s pinch. A separate survey from Gartner Marketing Practice revealed that 64% of consumers plan to maintain their holiday spending this year, while 21% expect to cut back.
Despite inflation concerns, the National Retail Federation (NRF) projects that holiday spending will increase by 2.5% to 3.5% in 2024, with total spending expected to reach between $979.5 billion and $989 billion in November and December. This would be an increase from the $955.6 billion spent during the same period in 2023, according to NRF’s annual holiday forecast.
Though inflation remains a key factor in shoppers’ decisions, it seems many, including teens, are determined to keep the holiday spirit alive despite the higher costs.
