Black Friday Spending Drops 4.3% as Wallets Tighten for First Time Since 2020

Bargain hunters might be lining up, but their wallets aren’t opening as wide. For the first time in years, Americans expect to cut Black Friday spending by 4.3%, bringing average purchases down to about $622 over the five-day shopping blitz — snapping a four-year growth streak. High living costs and tighter budgets are forcing shoppers to pull back, even as more people say they’ll still join the frenzy.

• Households earning $50K and over $200K plan spending cuts of 12% and 18%, while the $100K–$199K group expects to spend about 5% more.
• Nearly two-thirds of shoppers will use financing to manage holiday costs, and half will rely on buy now, pay later loans, per PayPal.

Spending cooldown: Younger consumers remain the most enthusiastic Black Friday participants, while older generations prefer waiting closer to Christmas. Despite this hype, Gen Z shoppers plan to spend 23% less on average than last year, the sharpest generational decline. Bankrate’s Ted Rossman remains optimistic, noting “Consumers are still spending (despite low sentiment) and retailers are offering solid discounts,” though he warned that “a consumer spending pullback is more likely next year.”