Survey: Millennials to spend more, shop on mobile devices this holiday

RIVERWOODS - Spending is expected to be on the rise this holiday season, according to Discover's annual holiday survey.

After an 11 percent drop in expected holiday spending from $1,014 in 2013 to $900 in 2014, consumers plan to spend 3 percent more in 2015. Compared to five years ago, when holiday shoppers planned on spending $730 on average, this year's anticipated spend of $927 represents a 27 percent increase.

When differentiating between millennials and non-millennials, the younger generation is spending more at a faster rate: 43 percent of shoppers between the ages of 18-34 expect to spend more this year than they did last holiday season, compared to 22 percent of shoppers ages 35 and older.

The preferred method of payment for holiday shopping will be with a credit card, as approximately 41 percent of those surveyed will pay with credit, followed by 27 percent using a debit card and 18 percent spending cash. Credit card usage is up 18 percent compared to five years ago when only 23 percent of those surveyed planned on using their credit card most often for holiday shopping.

Both millennials and non-millennials plan to spend similar amounts overall this holiday season - $941 and $926, respectively - however, the Discover survey found stark differences in the two groups' shopping habits.

Millennials prefer mobile shopping experience more than non-millennials.

Millennials are expected to outpace non-millennials more than 2-to-1 this year when it comes to shopping on mobile devices, as 73 percent of millennials surveyed say they will use a smartphone or tablet for holiday shopping, compared to 32 percent of non-millennials. Similarly, 52 percent of millennials say they'll do most of their holiday shopping online, compared to 42 percent of non-millennials.

When it comes to mobile wallets, 36 percent of millennials surveyed currently use that technology, compared to 15 percent of non-millennials. Among those using a mobile wallet, 80 percent of millennials say they will use it for holiday shopping, compared to 69 percent of non-millennials.