As the holiday season approaches, Bay Area young adults are getting strategic about their spending. A recent Bankrate survey reveals that nearly half of holiday shoppers plan to start their shopping before Halloween, with many looking to minimize financial strain.

Millennials and Gen Z are leading the charge in budget-conscious holiday preparation. Many are starting their shopping early, taking advantage of summer and back-to-school sales to spread out expenses. One 26-year-old mom from Charlotte shared her strategy of setting aside $30-$50 weekly in a high-yield savings account specifically for holiday gifts.

The survey highlights some interesting trends: 41% of shoppers are concerned about higher gift prices this year, with boomers expressing the most worry. Interestingly, only 24% of people are actually creating a formal budget for holiday spending.

Travel plans are also shifting, with fewer Americans planning to travel compared to previous years. Only 21% intend to fly or stay in hotels during the holidays, down from 27% in 2024. Gen Z and Millennials are experiencing the most significant drops in travel plans, potentially due to ongoing economic uncertainties.

Payment methods are evolving too. While credit cards remain popular, 61% of shoppers plan to use debit cards to avoid accumulating debt. Gen Zers are most likely to use debit cards and cash, while Millennials are more comfortable with buy-now-pay-later services.

Experts recommend several strategies for budget-friendly holidays: start shopping early, remain flexible with travel plans, consider secondhand shopping, and leverage rewards credit cards. The key is planning ahead and being intentional about spending.

As the holiday season approaches, the message is clear: smart spending doesn’t mean sacrificing joy. With careful planning and creative strategies, young adults can enjoy meaningful celebrations without financial stress.