Even though millennials are carrying large burdens of student loan debt, the relatively young generation is poised to be one of the driving forces in holiday spending this Christmas season.
According to a new survey by PwC, the majority of Americans are set to spend as much or more on holidays this season when compared with 2017. About 84 percent of consumers planned on spending at least $1,250 on various holiday-related expenses, most of which went toward travel and gifts.
When it comes to young people, however, millennials with cash to spend are likely to lead all consumers in holiday spending. According to PwC, 92 percent of young people who earn $70,000 or more were expected to meet or exceed their overall holiday spending from 2017.
[Related: Retailers clock best holiday shopping season in six years]
Based on recent estimates, this group of high-earning young people will spend approximately $2,021 this holiday season, more than double what the millennials earning below $70,000 per year are expected to spend ($839).
Interestingly enough, more than half of what high-earning millennials are projected to spend this holiday season will not include gifts for family or donations. Roughly $1,100 will be spent on personal things such as travel or entertainment, with the rest going toward gifts for others, including pets. These purchases are not last-minute splurge buys either, as roughly one-third of buyers surveyed reported starting their holiday shopping as early as June.
While there are likely a number of factors contributing to the increased drive in millennial holiday spending this year, President Trump’s strong economy also certainly plays a role in these decisions. More than half of all surveyed millennials reported being bullish about the upcoming economy, compared with just 29 percent who were not optimistic.
Regardless of where you fit in terms of planned holiday spending, millennials can definitely thank Trump for a booming economy and low unemployment as the result of his tax cuts and economic policies. While the future may be uncertain now that Democrats have gained control of the House of Representatives, consumers can still enjoy holidays this year with a little more money in their pocket.
John Patrick (@john_pat_rick) is a graduate of Canisius College and Georgia Southern University. He interned for Red Alert Politics during the summer of 2012 and has continued to contribute regularly.
