Younger generations may be letting go of luxury and embracing local instead, as the economy shifts and the push to support local has risen with policy tensions between Canada and the United States.
A report from PWC Canada reveals that spending will go down 35 per cent for Gen Z, versus only 11% for older generations.
“Gen Z tend to be a little more cost-conscious, likely because of their discretionary budgets,” said Cara Cole, Partner in PWC Canada’s Value Creation practice.
One key factor is that the cost of living continues to increase, and “[Gen Z] are really starting to feel that crunch,” said Cole.
(Credit: PiggyBank / Unsplash)
Other components include the United States tariffs and unemployment rates, said Cole.
The report also reveals that 90 per cent of both Gen Z and Millennials expect prices to be higher.
“[Gen Z] are looking for value and prices are important to them,” said Cole.
Travel and entertainment are seeing the biggest drop in purchases, followed by gifts, said Cole.
Students at Fanshawe College may be changing their spending plans this year alongside those who were surveyed.
One student at the college, Claire, said she “can’t afford to go on vacation right now” and was considering working over the break to make “extra income.”
The full PWC Canada report can be found on its website.
