Millennials are the age group most susceptible to overspending at Christmas, according to a new report from NerdWallet.
The research revealed that millennials undergo significant stress during the festive period, with 84% of people between the ages of 25 and 40 felt a pressure to spend beyond their means in the run-up to Christmas, compared to the national average of 62%.
In addition, 35% of millennials said that the biggest reason for spending money this time of year is to make their families happy. The data also suggests that millennials could be the generation most likely to borrow money or use credit to purchase toys for their children, with 49% believing this to be acceptable, compared to 39% of GenX and Gen Z.
Almost two thirds, 63%, of millennials also said they were willing to put their Christmas spending on credit, compared to just 47% of Gen Z, 49% of Gen X and 31% of Baby Boomers.
Additionally, 55% of millennials anticipate using credit or loans to make it through January compared to 50% of Gen Z and 37% of Gen X.
“Christmas and New Year can be a time of high financial stress,” NerdWallet personal finance expert Denise Ko Genovese.
“Not only has our survey revealed that those in the 25-40 age bracket seem to feel this more acutely than other generations, we also found that they are more likely to take out loans or use credit, which can present further risk.
“As much as we’re all keen to please those closest to us, it’s important to recognise our personal limits and understand the potential dangers of borrowing money beyond what we can afford.
“There’s an abundance of financial tips and guidance available online, including from our NerdWallet website, which can help people to more effectively manage their festive and year-round spending.”