For a generation that grew up online, you might expect Christmas to feel a little outdated. It does not. If anything, Gen Z is clinging to the holiday. They are just doing it with one eye on their bank balance and another on their social feeds.
New research from student help company PapersOwl paints a very specific picture of how 2,000 members of Gen Z approach the season. Christmas is still emotionally central. It is also expensive, stressful, and heavily filtered through social media.
The result looks less like the carefree countdown you see in holiday ads and more like a tightrope walk between joy, obligation, and money.
Christmas is still “the” holiday for Gen Z
For all the talk about younger generations rejecting tradition, Christmas remains at the top of the list. In the PapersOwl survey, 59% of Gen Z respondents say Christmas is the most important holiday of the year. Only about a fifth put other celebrations above it.
The core ritual has not changed much either. Gift exchange sits at the heart of “Gen Z Christmascore”. Three quarters of respondents say exchanging presents is their favorite Christmas tradition, ahead of things like parties or religious activities.
There is another subtle shift hidden in the numbers. Nearly a quarter of respondents say the biggest share of their Christmas spending now goes to their own children. This is no longer just the generation unwrapping gifts on the floor. A growing slice are the ones buying them, quietly stepping into the “parent who makes Christmas happen” role.
So emotionally, Christmas still holds. The tension starts when Gen Z looks at the bill.
When “merry” meets money problems
Gen Z’s relationship with holiday spending is complicated. On one hand, the season clearly matters. On the other, they are acutely aware of the price tag.
About 55% of respondents say they feel some level of pressure to buy gifts for every family member. One in three say they have already gone into debt at least once to cover Christmas expenses.
Gifts dominate the budget. For 8 out of 10 respondents, presents are the biggest Christmas expense. Children top the priority list, followed by close family and partners.
At the same time, this generation is not throwing money around. The majority report keeping their total gift spending under 500 dollars. Discounts are not a bonus. They are part of the strategy. Sixty-three percent say they join Black Friday or Cyber Monday sales, and 62% say promotions and discounts directly shape their holiday shopping decisions.
Even with that planning, nearly half admit they feel pushed to spend more than they can really afford. Seventy-one percent say Christmas has become too commercialized.
In other words, Gen Z is trying to do the “good child / good parent / good friend” thing, while also behaving like the most budget-aware generation we have seen in a long time. The math does not always work in their favor.
Social media sets the bar. Real life pays for it.
The pressure is not just financial. It is also aesthetic.
Almost half of Gen Z in the survey say social media influences how they see Christmas. About a third say they often compare their own celebration to what they see from celebrities and influencers.
That constant comparison comes with a cost.
More than seven in ten respondents say they feel obligated to spend Christmas with family. Over half say they cannot honestly describe the season as “not stressful”. Many specifically tie that stress to the need to stage a “perfect” holiday or meet family expectations.
Yet there is a twist. For all the influence social media has on their mood, most Gen Zers do not put their own Christmas online. According to the survey, 8 out of 10 say they do not broadcast their celebration on social platforms at all.
So they scroll through curated versions of other people’s holidays, feel the pressure to match them, then largely choose to keep their own experience offline. It is Christmas as a private reality and a public performance they have already decided not to enter.
How Gen Z actually spends the holiday
Beneath the stress and the budgeting, Gen Z’s Christmas looks surprisingly traditional.
PapersOwl’s data shows strong support for low-tech rituals. Around 59% say baking is part of their Christmas. Sixty percent mention decorating. Sixty-two percent plan Christmas movie marathons.
When it comes to socializing, the story is similar. About 53% say they like to mix online and offline greetings, while a third enjoy hosting parties at home. The messaging apps and Instagram stories are still there. They just sit alongside real-world gatherings, not instead of them.
That balance between screens and living rooms extends to how Gen Z thinks about the bigger picture. Just over half of respondents say they set some kind of budget for the holidays, a small act of control in a season that can easily spiral.
In short, you are more likely to find this generation baking cookies, rewatching old Christmas films and texting friends than you are to see them livestreaming an extravagant party.
Coping with the emotional load
The survey also underscores how emotionally loaded the holidays can be.
Gen Z uses a mix of strategies to handle that pressure. Sixteen percent say they turn to mindfulness or meditation. Fifteen percent rely on alcohol as a coping mechanism. Twelve percent admit they lean into procrastination or escapism. Eight percent say openly that they simply cannot cope with holiday stress.
Despite all that strain, more than half of respondents do not take any specific days off for Christmas. Fifty-four percent say they keep working or studying through the season.
It adds up to a familiar pattern. A generation that is already known for its high levels of anxiety and burnout is trying to navigate the most emotionally charged season of the year without much extra time or space.
What this says about Gen Z and the future of the holidays
Taken together, PapersOwl’s findings sketch a clear image of where Gen Z sits right now. Christmas still matters deeply. The rituals have not disappeared. Gift exchanges, baking, decorating and movie nights are very much alive.
At the same time, the holiday has become a careful calculation. This generation is:
- Setting budgets and chasing discounts.
- Feeling torn between what they can afford and what they feel they owe loved ones.
- Absorbing idealized versions of Christmas on social media, then quietly choosing not to broadcast their own.
- Trying to protect their mental health, even as they admit they struggle to cope.
The survey does not suggest Gen Z is about to opt out of Christmas. It suggests they want a version of it that feels more honest. Less commercial noise. Fewer impossible standards. More emphasis on time, connection and small rituals that do not require a credit card.
For retailers, brands and even older family members, that is worth noting. The next generation of hosts and gift-givers is already here. They are determined to keep Christmas, but they are equally determined not to lose themselves in it.
