Millennials are primed to lead holiday spending as nearly two in three now expect their income will increase in the coming ear. TransUnion’s Q4 2024 Consumer Pulse research study reveals that consumers still most interested in doing their holiday shopping “between Thanksgiving and Cyber Monday.”
With the holidays approaching, the research report from TransUnion claims that there is one certainty: Millennials enter the height of the holiday shopping season with a “high level of optimism” about their household finances and future income prospects.
TransUnion’s (NYSE: TRU) Q4 2024 Consumer Pulse study found that 33% of Millennials plan on spending “more than $500 this holiday season – the highest of any generation.”
The Consumer Pulse study is said to be based on a survey of 3,000 American adults between October 1-9, 2024.
Among the reasons why Millennials will play a “large role” this holiday shopping season: 65% are optimistic about their household finances – greater than the “58% total for the entire population and the highest among generations surveyed.”
In addition, 41% of Millennials said their income increased during the past three months “compared to 29% across generations; 63% of Millennials felt their income would increase in the next 12 months compared to 53% for the entire population.”
Charlie Wise, senior vice president and head of global research and consulting at TransUnion said that based on their research, it’s clear that Millennials will play the “largest role this holiday shopping season with the greatest expected spend.” Wise added that consumers, led by Millennials and Gen Z, continue to most value the deals “associated with Black Friday and Cyber Monday – either when shopping online or in-person.”
Though the holiday shopping season seemingly starts earlier each year, many consumers continue “to be most interested in doing their shopping online or in-person between Thanksgiving Day and Cyber Monday.”
Four in 10 (41%) Americans are interested in shopping online “on Thanksgiving Day, Black Friday and Cyber Monday. About one-third of consumers said they are interested in shopping in-person on Thanksgiving Day and Black Friday.”
The next most “popular” shopping period was “prior to Thanksgiving (30%). Only 21% of consumers were interested in last-minute holiday shopping deals.”
As noted in the report from TransUnion, credit cards are still the most popular way to make holiday purchases “at 38%, followed by debit cards (31%) and cash (16%).”
Non-traditional payment platforms such as mobile payment apps (ApplePay, PayPal, etc.) are “at 7%, followed by Buy Now Pay Later (BNPL) at 4%.”
According to the TransUnion report, Gen Z plans on using non-traditional payments at a “higher rate than other generations – 15% for mobile payments apps and 7% for BNPL.”
Millennials also are more apt to use these payment types (10% mobile payment apps; 6% BNPL).
Wise added:
“Though the use of non-traditional payments is still relatively small, we do believe BNPL will continue to gain in popularity, especially when BNPL payments become more widely reported to credit bureaus and begin factoring into credit scoring models.”
Consumer “optimism” about household finances in the next 12 months increased this past year from “56% in Q4 2023 to 58% this quarter even as inflation for everyday goods remains a top concern.”
Eight in 10 consumers (80%) ranked inflation in the “top three concerns affecting their household finances in the next six months and 46% ranked inflation as their top concern.” But such concerns are down from “84% and 50%, respectively, in the second quarter of 2024.”
Despite concern about inflation, 81% of Americans reported their “income increased or stayed the same in past three months, indicating a level of stability in household finances.”
Their income outlook is stronger with “93% expecting their income to increase or to stay the same.”