Teens are increasingly aware of inflation’s impact on holiday shopping. Many worry about rising costs affecting their budgets. A Junior Achievement survey revealed over one-third of teens are concerned about inflation as they plan their purchases.
The JA Teens & Holiday Spending survey, which polled over 1,000 teens, found 70% worry about inflation’s effect on their holiday spending. This number closely matches last year, when 71% expressed similar concerns.
“Although inflation has stabilized somewhat, anxiety about prices persists, especially among teens,” said Ed Grocholski, Chief Marketing Officer of Junior Achievement USA.
Everyday Price Increases Reshape Holiday Choices
Samhith Padala, an 18-year-old UC Berkeley freshman, shared how inflation complicates shopping. Everyday items like candy and gift wrap now cost more. Padala recalled when such items were $1 but now cost 25 cents more. These price hikes force difficult decisions, even for small purchases.
Padala, originally from Phoenix and co-founder of a media agency, shared a friend’s dilemma. The friend had to choose between buying a birthday gift for his mom or paying for gas. Padala plans to continue buying gifts but expects higher holiday expenses due to inflation.
How Teens Fund Their Holiday Shopping
The survey explored teens’ holiday spending sources. About 74% rely on parents or caregivers for money, while 35% use their own earnings from part-time jobs or gig work.
Shopping habits showed 75% of teens plan to shop in physical stores, slightly down from 76% in 2023. Meanwhile, 69% intend to shop online, up from 67% last year. Grocholski noted in-person shopping feels special for teens, despite the prevalence of online options. “Many teens enjoy exploring stores and seeing products firsthand,” he said.
Broader Holiday Spending Trends Amid Inflation
Teens aren’t the only ones feeling inflation’s effects. A Gartner survey found 64% of consumers plan to maintain last year’s spending, while 21% intend to spend less.
Despite these concerns, the National Retail Federation predicts holiday spending will rise by 2.5% to 3.5% in 2024. Total spending is expected to reach $979.5 billion to $989 billion, up from $955.6 billion in 2023.
Although inflation weighs on shoppers’ minds, many teens and families remain committed to celebrating the holiday season with meaningful purchases.
