Holiday shopping is so tempting for millennials that 8 in 10 admit to busting their budgets by spending too much on gifts for other people.
A new holiday survey claims 86% of millennials, those aged 26 to 41, spent more money during the holidays last year than they planned to.
The holiday survey from American Express Pay-It-Plan-It found that of those who overspent, about one in five went over budget by $500 or more, CNBC reported.
Electronics (68%) were the most common gift that caused millennials to overspend, followed by children's toys (57%), jewelry (38%), food or drinks (33%) and other gifts (4%).
Why are they spending so much? The pandemic may carry some blame. The 2021 holiday season saw shoppers spending roughly 8.5% more than the year before as pandemic-induced pent-up demand, excess savings and supply chain issues sent them stocking carts to secure gifts, according to MasterCard.
The trend is expected to continue this year, with holiday shoppers projected to spend 7.1% more than they did in 2021, per MasterCard. Millennials are expected to lead all age groups when it comes to spending this year, averaging a total of $1,823 on gifts, travel and entertainment, according to PwC's holiday outlook.
This holiday season, 88% of millennials say they plan to spend $100 or more per person on their gift list, according to CNBC. As for the lucky recipients of these big-ticket purchases, spouses and partners (59%) top the list, followed by children (49%), siblings (30%), friends (21%), grandparents (18%), and everyone else (9%).
Recent financial concerns, mainly inflation, have millennials being slightly more savvy when it comes to stretching their dollars this year -- 64% say they plan to search for deals and discounts, along with special sales like Black Friday to get more bang for their buck, per CNBC.
Good intentions don't always turn out that way. Even though half of millennials say they create a budget when shopping for holiday gifts, 84% admit that they don't stick to the plan, CNBC added.
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