Inflation is impacting teens as well as adults, adding stress to their holiday shopping plans. A recent study by Junior Achievement reveals that rising costs are a major concern for teenagers this holiday season.
The JA Teens & Holiday Spending survey, which polled over 1,000 teens, found that 70% are worried about inflation’s effect on their shopping. This figure is nearly identical to last year’s results, where 71% of teens shared similar concerns.
“While inflation has eased, price worries persist, especially for teens who notice everyday costs rising,” said Ed Grocholski, Chief Marketing Officer at Junior Achievement USA.
Rising Costs Shape Teen Spending Choices
Samhith Padala, an 18-year-old freshman at UC Berkeley, shared how inflation affects his daily expenses and holiday plans.
“Inflation makes it harder to afford items that used to be inexpensive,” Padala said. “Candy, stuffed animals, and gift wrap—things that were $1 at dollar stores—now cost 25 cents more.”
Padala, who started a media production company at 12, noted these price hikes lead to tough decisions. A friend of his, working at a hotel, had to choose between buying a birthday gift for his mom or paying for gas. Despite higher costs, Padala plans to buy gifts for loved ones but expects to spend more.
Teens and Their Shopping Strategies
The survey also explored how teens fund their holiday shopping. About 74% reported relying on money from parents or caregivers, while 35% said they use earnings from part-time or gig jobs.
When it comes to shopping preferences, 75% of teens plan to visit physical stores this year, down slightly from 76% in 2023. Online shopping is on the rise, with 69% of teens planning to shop online, up from 67% last year.
“Teens are online constantly, so in-person shopping feels like a special experience,” Grocholski explained. “Many enjoy visiting stores to see and choose products firsthand.”
Inflation Impacts Shoppers of All Ages
Teens are not alone in feeling inflation’s impact. A Gartner Marketing Practice survey found 64% of consumers plan to keep their holiday spending steady, while 21% aim to cut back.
Despite this, the National Retail Federation (NRF) forecasts a 2.5% to 3.5% rise in holiday spending this year. Total spending is expected to reach $979.5 billion to $989 billion in November and December, up from $955.6 billion in 2023.
Although inflation challenges shoppers, both teens and adults seem determined to uphold holiday traditions despite higher costs.