As the holiday shopping season kicks off, younger generations are spearheading a fundamental change in consumer behavior, marked by financial discipline and a move away from traditional retail events. According to the latest CNBC|SurveyMonkey 2025 Small Business Saturday Survey, Gen Z and millennials are approaching the holidays with tighter budgets, shorter gift lists, and more creative cost-saving strategies than their older counterparts.

Budgeting, Handmade Gifts, and Strategic Timing

The survey reveals a clear generational divide in financial planning. Nearly a quarter (24%) of Gen Z and millennial shoppers rely on budgeting tools—double the rate of Gen X (12%) and more than twice that of Boomers (10%). This intentional spending approach is reflected in their tactics: 24% of Gen Z plan to make handmade gifts to save money, compared to just 13% of Gen X and Boomers.

While most Americans (82%) still plan to shop, the traditional retail calendar is losing its grip. A full 82% intend to complete most shopping outside the Thanksgiving weekend rush, with younger buyers leading this shift away from peak promotional days.

The Small Business "Visibility Crisis"

A significant barrier for local retailers is a pronounced generational awareness gap. Nearly half (47%) of Gen Z and 38% of millennials cite not knowing where local small businesses are as the primary reason for skipping Small Business Saturday—far more than those citing higher prices (17-18%).

This gap highlights a critical digital disconnect: younger consumers rely heavily on online discovery, where algorithms often prioritize national chains over Main Street stores. "Without a strong digital presence, many small businesses simply don’t appear where younger consumers are looking," the survey notes, presenting a clear mandate for local retailers to boost their online visibility.

Economic Pressures and Adaptive Behaviors

External economic factors are adding pressure, with 39% of young shoppers citing tariffs as a reason to spend less. Yet, their adaptive behaviors—prioritizing budgeting, handmade gifts, and strategic timing—demonstrate a sophisticated financial adaptation to persistent inflation and economic uncertainty.

This year's trends underscore a pivotal moment: young consumers are not simply spending less; they are spending differently. Their blend of creativity, digital-native habits, and disciplined planning is reshaping the holiday economy, urging both large retailers and small businesses to rethink how they engage the next generation of shoppers.