The holiday season is about to get a serious financial reality check, and millennials are leading the charge in scaling back their festive expenses. As inflation continues to squeeze wallets tighter than your aunt’s holiday hugs, more young people are getting strategic about their spending.

Early Bird Gets the Budget-Friendly Deals

Millennials and Gen Z are proving they’re not just broke , they’re smart. Nearly half of holiday shoppers plan to start their gift hunt before Halloween, with some savvy spenders like 26-year-old Loren Jerae starting as early as July. Her strategy? Thrift stores, online marketplaces, and strategic clearance rack hunting.

The Travel Dilemma: Stay Home or Go Broke?

Travel plans are taking a hit too. Only 21% of Americans plan to travel this holiday season, down from 27% last year. Gen Z and millennials are experiencing the most significant drops, with travel plans decreasing by 14 and 9 percentage points respectively. It’s not just about saving money , it’s about being financially responsible in an unpredictable economy.

Debt and Dollars: The Holiday Spending Breakdown

Nearly one in three holiday travelers are likely to take on debt, with millennials leading at 39%. Credit cards remain the top payment method, but more people are opting for strategic approaches like using rewards points and hunting for early deals. The message is clear: this holiday season is about spending smarter, not harder.

As the economy continues to challenge our bank accounts, millennials and Gen Z are proving they’re masters of adaptation. Who said you need to break the bank to spread holiday cheer?