Teens are not immune to the effects of inflation when it comes to holiday shopping. A recent study by Junior Achievement reveals that more than a third of teenagers are worried about how rising prices will affect their ability to buy gifts this year.
The 2024 Junior Achievement Teens & Holiday Spending survey found that 70% of teens are concerned about the impact of inflation on their holiday shopping. This result is nearly identical to last year’s survey, where 71% of teens expressed similar concerns.
“We’ve seen prices stabilize in recent years, but there’s still a lot of anxiety about costs, especially since teens have directly felt the effects of inflation,” said Ed Grocholski, Chief Marketing Officer at Junior Achievement USA.
Everyday Expenses Affect Holiday Budgets
Samhith Padala, an 18-year-old college freshman at the University of California, Berkeley, shared that inflation is squeezing his budget for both daily expenses and holiday gifts.
“I think inflation has made it harder to buy things that used to be more affordable,” Padala said. “For example, candy, stuffed animals, even basic things like gift wrap or tape, which were once priced at $1 at a dollar store, now cost 25 cents more.”
These small price increases lead to difficult decisions, like the one Padala’s friend faced, who had to choose between buying his mom a birthday present or paying for gas. Although Padala, who co-founded a media production agency at age 12, plans to continue buying gifts for his loved ones, he expects to spend more this year due to inflation.
Teens Rely on Parents and Part-Time Jobs for Holiday Funds
The Junior Achievement survey, which polled over 1,000 teens, found that 74% of teens plan to receive their holiday spending money from their parents or caregivers. However, 35% of teens reported using their own earnings from jobs or gig work to fund their holiday shopping.
When it comes to shopping, 75% of teens said they plan to buy gifts in-store this year, a slight decrease from 76% in 2023. Meanwhile, 69% of teens expect to shop online, up from 67% last year. Grocholski noted that this trend toward in-store shopping has been growing over the past few years.
“It’s a shift from a time when shopping online felt like a more unique experience,” Grocholski said. “Now, many teens are excited to explore physical stores and see what’s available in person.”
Inflation Affects Shoppers Nationwide
It’s not just teens who are feeling the effects of inflation. A separate survey from Gartner Marketing Practice found that 64% of consumers plan to maintain their holiday spending this year, while 21% expect to spend less. Despite these concerns, the National Retail Federation forecasts that overall holiday spending will increase by 2.5% to 3.5% in 2024, reaching between $979.5 billion and $989 billion in November and December—an increase from $955.6 billion in 2023.
Even with inflation’s impact on budgets, it seems shoppers, including teens, are determined to make the most of this holiday season.