In the 21^st century, numerous aspects are much different than just a few decades ago. Anything from society to technology has been subject to revision and change. However, one thing that remains true today is that the holiday season is a time for buying gifts and spending time with family. In 2024, the holiday season was record-breaking across the board in terms of both sales and breadth. So, can the same be expected in 2025?

The first thing to consider is the financial status of those buying gifts during the holidays. On average, the US population has an Equifax Market Pulse Index of 61.4. This index works by combining both simple and complex statistics to paint an overall picture of each generation, as well as the US population as a whole. The simple and more straightforward statistics it utilizes is a demographic’s income, total assets, credit history, debt-to-income ratio, and overall capacity to pay off debts even under financial duress. Some of the broader financial trends this index attempts to include are the volatility of wealth, the impact of student loans, and the number of delinquencies within a demographic.

With all these factors in mind, the US as a whole saw a decrease from 62 to 61.4 from 2021 to 2025. However, this decrease is not universal and this number is disproportionately affected by certain generations. For instance, Baby Boomers actually saw a score increase of 0.5 during this 4-year timeframe. On the other hand, younger generations like Millennials and Gen Z saw a score decrease of 1.1 and 3.3 respectively. Consequently, these are the 2 generations that are expected to spend less this year during the holidays compared to last year.

One of the main reasons for the decrease in score is the rising number of delinquencies, which are disproportionately higher in these younger generations. The aforementioned student loans are an even more pressing threat to younger generations who are still trying to find their financial footing. In fact, it is estimated that there will be a 10% increase in young city families and 4% increase in young singles in the rate of severe delinquencies since April 2019.

Unfortunately, another major detriment to the younger generation is their relatively weak safety net. Millennials and Gen Z make up only 17% of the US’s entire invested assets and only have a combined 28% of savings. Of this 28%, Generation Z holds just 5%. This statistic is shocking alone, but gets even worse the deeper you delve into it. It is estimated that only 5% of Generation Z holds 63% of the generation’s wealth. This includes $1.2 trillion in assets for this affluent 5%, while the 95% only holds $600 billion.

These rough market conditions have forced younger consumers to adopt different strategies to keep purchasing necessities and gifts alike. Since 2021, the number of credit accounts has grown from 19.7 million to 39 million, almost doubling in count. Furthermore, the Buy Now, Pay Later (BNPL) system has grown in popularity amongst the younger generations especially. When it comes to holiday buying, 67% of parents plan to use it for vehicles, electronics, furniture, and even clothing. Because of the convenience it offers for consumers with low discretionary income, as much as 43% of consumers say that it influences their decision on where to shop.

Another popular strategy for younger and older generations alike is to pre-plan holiday spending. In 2024, 45% of all planned holiday gift spending happened in the 5-day gap between Thanksgiving and Cyber Monday. In 2025, this number will remain high at 39%. Additionally, 80% of all planned holiday gift spending is expected to occur by the end of Cyber Monday – which demonstrates how popular this strategy has become.

Fortunately, both preserving and accumulating wealth is much easier with the help of financial advisors. For example, the financial advisors from Equifax are able to monitor market trends and gather insights to better advise their clients. Furthermore, they offer flexible options for any generation with a virtual webinar or a 1-on-1 market pulse advisory session. Ultimately, if you want to make sure you have enough money for the holidays and help to future-proof your wealth, taking advantage of Equifax financial advisors is the way to go.