Teens are feeling the impact of inflation as they prepare for the holiday season. Many express concern over how rising prices will affect their gift-buying plans. A new Junior Achievement (JA) study reveals that over a third of teens are worried about inflation’s financial challenges this year.
The JA Teens & Holiday Spending survey gathered responses from more than 1,000 teens. It found that 70% of teens are concerned about inflation’s effect on their holiday shopping. This result is nearly identical to last year’s survey, which showed 71% of teens shared the same concern.
“Though some prices have stabilized, anxiety about rising costs remains,” said Ed Grocholski, Chief Marketing Officer at Junior Achievement USA. “Teens who’ve experienced price hikes firsthand feel this impact even more.”
Everyday Price Hikes Affect Holiday Budgets
Samhith Padala, an 18-year-old freshman at UC Berkeley, shared that inflation is affecting both his daily expenses and holiday shopping. “Inflation has made it harder to buy items that used to be more affordable,” Padala said. “Candy, stuffed animals, gift wrap, and tape that once cost $1 at dollar stores now cost 25 cents more. It adds up.”
Padala co-founded a media production agency at age 12, giving him early exposure to financial decision-making. He explained that higher prices force him to make difficult financial choices. For instance, a friend working at a hotel had to choose between buying a birthday gift for his mom or paying for gas. Despite inflation’s challenges, Padala still plans to buy gifts for loved ones but expects to spend more this year.
Teens’ Holiday Budgets: Parent Support and Part-Time Jobs
The JA survey also explored how teens fund their holiday purchases. About 74% of teens plan to rely on parents or caregivers for holiday money. Additionally, 35% of teens say they’ll use their own earnings from part-time jobs or gig work to buy gifts.
Teens’ shopping habits are also shifting. The survey found that 75% of teens plan to shop in physical stores this year, down slightly from 76% in 2023. Meanwhile, 69% of teens plan to shop online, up from 67% last year. Grocholski highlighted the increasing popularity of in-person shopping.
“With constant access to online shopping, in-store visits feel like a unique experience,” Grocholski said. “Teens are eager to explore stores and see products firsthand.”
Holiday Spending Trends Amid Inflation
Inflation’s impact is not limited to teens. A Gartner Marketing Practice survey found that 64% of consumers plan to maintain their holiday spending this year. Meanwhile, 21% of consumers expect to cut back on holiday expenses.
Despite inflation, the National Retail Federation (NRF) projects holiday spending will grow by 2.5% to 3.5% in 2024. Total spending is expected to reach between $979.5 billion and $989 billion for November and December. This would mark an increase from the $955.6 billion spent during the same period in 2023, according to NRF’s annual holiday forecast.
Although inflation is a major factor in shoppers’ decisions, many, including teens, remain committed to keeping the holiday spirit alive. Rising costs may require adjustments, but the desire to celebrate and give gifts continues to drive spending during the holiday season.