Millennials will spend more than Baby Boomers and Gen X on gifts, according to a new study by the Lincoln Financial Group about holiday spending habits.
Lincoln reports that only 51 percent of shoppers surveyed have actually decided on a holiday spending budget, but those who have done so expect to spend an average of $1,115 this holiday season. Of that group, men are looking at holiday expenses that average $1,428, while women only expect to shell out $786.
Meanwhile, Millennials plan to put about $1,400 towards the holidays — approximately $500 more than Boomers and Gen Xers. Moreover, 64 percent of Millennials plan ahead for December spending, while only 49 percent of Gen Xers and 36 percent of Boomers put money away for holiday expenses. In addition, Millennials are the most likely to take advantage of holiday sales to buy what they really want, and 62 percent spend money on themselves as well as others during the holiday season, compared to 49 percent of Gen Xers and 37 percent of Boomers.
The study warns, however, that about one third of Americans will start 2018 with debt, thanks to their holiday spending. “Gifts you give others shouldn’t be at the expense of your own financial future,” said Jaime Ohl, president, Retirement Plan Services, Lincoln Financial Group. “Planning ahead and creating a holiday budget can help ensure that you’re able to spend this holiday season without sacrificing your other savings or even more importantly, your retirement savings.”