A survey from the American Express Pay It Plan It found out that 86 percent of millennials ages between 23 to 38 spent more money on holiday shopping last 2018.
The survey revealed that millennials are planning to spend less this year on holiday shopping. About 21 percent of those who overspent last year went over their budget by $500 or more.
The common gift that caused millennials to overspend was electronics, about 69 percent. Following gadgets, children’s toys make up for 57 percent of the reasons why millennials overspend. Clothes make up for the 53 percent, jewelry for 38 percent, and food and drinks is 33 percent.
This holiday season, 88 percent of millennials feel like they will overspend about $100 for gifts. Respondents said gifts for spouse and partners guarantee to spend more than $100 for a holiday gift. Children’s gifts follow the hierarchy, with 49 percent respondents saying they expect to overspend $100 for toys.
Meanwhile, 30 percent of the millennial respondents say they are going to spend more for their siblings this holiday season shopping.
The survey also revealed that millennials find it harder to stick to a specific budget for holiday spending. About 84 percent of the respondents believe they will not follow the holiday spending plan and overspend more for gifts.
For experts like Nicole Lapin, the key to curb the holiday spending this year is to plan ahead. “Make a list of everyone you want to gift and how much you want to spend. Approach your holiday shopping just like you would approach a trip to the grocery store. Plan ahead, write a list and know what you are searching for so you are less prone to the pitfalls of online shopping,” said Lapin.
US online shoppers already spent $50B last Black Friday and holiday spending is expected to hit $143 billion marks this year, according to Adobe Analytics.