Society - Written Wednesday, November 26, 2008 by Naumi Haque - 1 Comment

Hey there big spenda’

A recent poll in Australia suggests that the Net Generation will buoy Holiday spending this year, despite the recession.  The survey, conducted by ING Direct claims Gen Y shoppers will spend more than double the national average on themselves, as well as 30% more than the average on their partners and 86% more on friends.  A similar demographic study conducted by Maritz(R) Poll in the US found that when comparing the different generations, Gen Y was the only are the only generation saying they will spend the same as last year, rather than cutting back.  (However, in real dollar terms, Gen X will spend the most this year—on average $607 per shopper compared to $505 for Gen Y.)  Net Gen shoppers are also more likely to head to the mall on Black Friday (53% planning to shop) when compared against Gen X (46%), Boomers (36%), or the Silent Generation (18%).

While some may deride this Holiday exuberance as fiscally irresponsible, the Australian study also found that 66% of Gen Y respondents said they would use cash, not credit to purchase Christmas gifts, compared to 42% of the general population.  Says one teen; “I guess if they have the money, unlike older people, there’s no reason for them not to spend it.” 

Maybe it has something to do with the Net Gen faring better during the current recession, as one article suggests, because: they have weaker ties to corporate America; they cost less to retain compared to high-powered execs; they don’t have financial burdens such as mortgages and day care (although they do have school debt); they are capable of working extra hours and taking on more work; and they’re not stupid-they understand the change in personal expectations required to remain employed amidst the uncertainty.