FinancemacroeconomyConsumer Spending
Why shoppers may spend less this holiday week.
If your wallet feels significantly lighter heading into this holiday season, you're witnessing a fundamental shift in American consumer behavior firsthand. The relentless pressure of inflation, chaotic tariff policies disrupting supply chains, and a job market that's cooled considerably in 2025 are converging to create a perfect storm of financial anxiety right before the busiest shopping period of the year.Americans still need to purchase Thanksgiving feasts and find gifts for under the tree, but the era of unchecked holiday splurging appears to be over, replaced by a new, more pragmatic approach to spending. According to a revealing survey from consulting giant Deloitte, more people than ever plan to participate in the Black Friday through Cyber Monday shopping extravaganza, but they intend to spend an average of $622—a 4% drop from last year and the first decline in five years.This isn't just a statistical blip; it's a direct reflection of household budgets stretched to their limits, where higher costs for essentials like groceries, housing, and energy have forced a reevaluation of discretionary spending. Think of it like rebalancing your personal financial portfolio: when fixed costs rise, you have to cut back on variable expenses to stay in the black.The generational spending split is particularly telling. While Gen X and Boomer shoppers, who often bear the weight of mortgages and college tuition payments, are pulling back, Gen Z and millennials are holding steady.Even more surprisingly, 72% of Gen Z shoppers plan to brave the physical stores on Black Friday, treating the day not just as a transaction but as a social experience. As Deloitte's Retail Strategy Leader Brian McCarthy noted, 'While most shoppers are showing restraint this season, the spending power of Gen Z is growing—they are responsible for about $20 of every $100 holiday dollar spent, compared to just $4 five years ago.' This isn't just about demographics; it's a lesson in financial prioritization. Meanwhile, a fascinating anomaly emerges in the $100,000 to $200,000 income bracket, where households actually plan to spend 5% more, suggesting they're strategically using this period for bulk purchasing of big-ticket items they've delayed buying.The National Retail Federation estimates a record 186. 9 million shoppers will hit the stores and websites between Thanksgiving and Cyber Monday, but the nature of that participation is changing dramatically.Beyond the economic pressures, a growing grassroots movement is encouraging a fundamental rethink of our consumption habits. The 'Mass Blackout' boycott and the 'We Ain't Buying It' movement are organizing shopping blackouts, urging Americans to redirect their dollars away from corporate giants like Amazon, Target, and Home Depot toward small businesses and local shops.This represents a powerful fusion of personal finance and political statement—a way for individuals to vote with their wallets against policies they disagree with while simultaneously practicing better financial hygiene. It's the ultimate side hustle for your values: saving money while making a point. The convergence of economic necessity and conscious consumerism means this holiday season will be remembered not for record sales, but for a fundamental reset in how Americans approach spending, prioritizing value, experience, and alignment with personal principles over mere accumulation.
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