Millennials Lead Holiday Spending Despite Debt Concerns

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This holiday season, millennials are stepping up as the most optimistic and active spenders among all generations. According to a recent TransUnion report, 63% of millennials plan to match or increase their holiday shopping expenditures compared to last year. This group, many of whom are now parents, is poised to play a dominant role in the expected record-breaking holiday spending.

Millennial Optimism Drives Spending

Charlie Wise, TransUnion’s senior vice president of global research and consulting, highlighted the financial confidence of millennials heading into the holidays. Many in this generation have experienced wage growth that outpaces inflation, coupled with a steady employment landscape. “When people have jobs, that confidence translates into spending,” Wise explained.

The National Retail Federation predicts holiday spending between November 1 and December 31 will reach $979.5 billion to $989 billion, marking a new record. Millennials, with their robust financial optimism, are expected to significantly contribute to this surge.

Rising Budgets Amid Growing Debt

Despite optimism, consumer debt is a growing concern. Deloitte’s holiday retail survey revealed that shoppers plan to spend an average of $1,778 this season—an 8% increase from last year—even as U.S. credit card debt has surpassed $1.17 trillion. Moreover, a NerdWallet survey found that 28% of holiday shoppers have yet to pay off debts from last year’s gift purchases.

Shoppers are turning to various payment methods to finance their spending:

  • 74% plan to use credit cards.
  • 28% will dip into savings.
  • 16% intend to utilize buy now, pay later (BNPL) services.

Risks of Buy Now, Pay Later Services

BNPL services are among the fastest-growing financing options, with spending expected to peak on Cyber Monday at nearly $993 million, according to Adobe Analytics. While these services offer short-term flexibility—often with 0% interest—experts caution that they may lead to long-term financial strain.

Marshall Lux, a senior fellow at Harvard Kennedy School, noted, “If used properly, it’s great. But spreading purchases over a longer period can lead to high interest rates and cycles of debt.”

The risks of BNPL include:

  • Overspending due to ease of installment payments.
  • Missed or late payments that incur high penalties.
  • Interest rates that can rival credit card charges, reaching as high as 30%.

Financial Caution During the Holidays

While millennials and other consumers are eager to celebrate, experts advise mindful spending. Proper management of BNPL accounts and credit cards can help avoid debt traps, ensuring financial health beyond the holiday season.

 

Three Simple Strategies to Combat Stress and Boost Happiness

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Life’s daily demands—managing relationships, excelling at work, and staying healthy—can feel overwhelming at times. Stress and anxiety often follow, but happiness expert Jessica Weiss offers actionable techniques to shift your mindset and increase joy.

Weiss suggests first acknowledging your emotions. Allocate 15 to 20 minutes daily to feel and process feelings like sadness or anger. Whether by talking to a friend or engaging in physical activity, releasing these emotions can be therapeutic. Then, take the next step: “flip the script on overwhelm” by incorporating three simple, joy-boosting practices into your routine.

1. Keep a Joy Journal

Documenting moments of joy each day is a quick way to uplift your spirits.

Use a notebook to write down three things that brought you joy and why at the end of each day. These moments don’t need to be monumental. Perhaps you enjoyed a delicious cappuccino or received long-overdue recognition at work.

The goal is to shift your focus toward positive experiences, no matter how small, helping to cultivate a habit of gratitude and optimism.

2. Express Surprise Gratitude

Expressing gratitude has proven mental health benefits, but “surprise gratitude” takes it a step further.

Weiss explains this involves thanking someone long after an event occurred. For instance, sending a thank-you card to hospital staff months after a procedure can create an unexpected, powerful impact. This delay adds an element of surprise, amplifying the emotional benefits for both the giver and receiver. Weiss recommends practicing surprise gratitude quarterly for maximum effect.

3. Savor the Moment

Savoring joyful moments helps to build what Weiss calls the “happiness muscle.”

When you experience something uplifting, like a beautiful sunset or a kind compliment, take the time to fully absorb it. Acknowledge how it makes you feel and create a vivid mental snapshot. Research shows that savoring these experiences increases your capacity for happiness over time.

Conclusion
Incorporating these simple habits—journaling joyful moments, expressing gratitude, and savoring happiness—can help reduce stress and foster a more joyful outlook on life. These techniques don’t just combat anxiety; they build long-term resilience and amplify your overall well-being.

 

Swiss Voters Reject Law Enhancing Landlords’ Powers Over Subletting

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Swiss voters have narrowly rejected a proposed legal change that would have granted landlords greater authority to restrict subletting by tenants, including through platforms like Airbnb. Preliminary results from Sunday’s referendum show that 51.6% of voters opposed the change, which was passed by parliament in 2023.

The Controversial Proposal

The proposed law aimed to address concerns that tenants were increasingly subletting their properties via Airbnb, thereby disrupting the rental market. Supporters of the change argued that it was necessary to prevent such practices, which they claimed were contributing to housing shortages in some areas. However, opponents, led by a major tenants’ association, countered that much of the Airbnb activity involved landlords themselves subletting their properties, rather than tenants doing so.

Kathrin Anselm, the head of Airbnb in Switzerland, denied the company’s involvement in creating a housing crisis, stating earlier this month that Airbnb had no influence on the residential rental market in Switzerland.

Broader Voting Trends

In addition to rejecting the subletting law, Swiss voters also voted down a separate proposal that would have given landlords more power to terminate leases when they wanted to use the property themselves. This proposal was also part of the same round of national referendums, which highlighted ongoing debates over tenant rights and housing policies in Switzerland.

These issues are particularly significant in Switzerland, where a large proportion of households—most recently recorded at the end of 2022—live in rented or cooperative housing.

Other Referendum Results

In other results, voters rejected government plans to expand Switzerland’s motorway network and, in a local referendum in Zurich, decided against removing gender-inclusive language from the city’s official texts. These results reflect the strong role of direct democracy in Swiss politics, with voters regularly being asked to weigh in on key legislative issues.