- 65% of Americans say they will have to choose more budget-friendly activities this summer, and more than half (52%) are traveling less than in previous summers or are skipping vacations altogether due to financial stress (43%).
- 68% of “buy now, pay later” users say they wouldn’t be able to afford certain events or activities this summer without these services.
- Roughly half of Gen Z (49%) say that planning for the future feels pointless, so they’d rather spend their money freely this summer.
This summer, everyone’s after the same thing: a good time. But while some are ready to spend freely to make that happen, others are swapping pricey vacations, concerts, and fine dining for budget-friendly alternatives.
According to a new study conducted by Intuit Credit Karma, about one-third of Americans (34%) expect to spend less on non-essentials this summer, compared to previous years, primarily due to the rising cost of living (70%), economic uncertainty (46%), and concerns over tariffs (36%). While 44% expect their summer to be less enjoyable due to financial constraints, most (62%) still see summer as a time to have fun and indulge – especially Gen Z. In fact, 37% of Gen Z expect to spend more this summer on non-essentials, including dining out, travel, and entertainment, than they have in previous summers. They’re of the mindset that summer fun comes first, with 32% of Gen Z admitting they plan to prioritize their finances after summer is behind them.
Americans are split on how they approach summer spending
Whether planning to spend big or keep things low-cost, nearly half of Americans (46%) say they’re already feeling anxious about affording their summer plans, driving 65% to opt for more budget-friendly activities this summer.
However, younger crowds aren’t as willing to cut back this sunny season as 58% of millennials and 48% of Gen Z plan to prioritize experiences over saving money this summer, pointing to travel and vacations (65% of millennials, 52% of Gen Z) and dining out (70% of Gen Z, 58% of millennials) as expenses they plan to spend more on this year than in previous summers.
For nearly half of Gen Z, their YOLO mindset toward summer spending skews a bit grim. Roughly half (49%) claim that planning for the future feels pointless, so they’d rather spend their money freely this summer.
Travel looks different this summer
Among those planning to spend less on non-essentials this summer, vacations are one of the first luxuries to be cut, as 58% are scaling back on travel. In fact, 52% of Americans are traveling less than in previous summers, and 43% are skipping vacations altogether due to financial stress. To get their travel fix, 56% are choosing more affordable options like camping, visiting national parks, or taking staycations instead, a trend especially common among millennials (63%). Others are limiting travel to events they’ve already committed to, such as weddings or music festivals, with Gen Z and millennials leading this approach at 53% and 56%, respectively. Yet, cutting out travel goes against the grain for many Gen Zers, as 46% note travel as a non-negotiable for them this summer, even if they have to cut other expenses.
Americans rely on BNPL to fund their summer plans
While one-third (33%) of Americans plan to swipe their credit cards to pay for their summer plans, more than a quarter (27%) have used, or plan to use a payment plan or a “buy now, pay later” service in order to afford a summer purchase, activity, or event, rising to 45% of Gen Z and 38% of millennials. In fact, many Americans depend on the service to fund their fun, and in some cases, their essential expenses too. While 68% of those who have used or plan to use a BNPL service for a summer purchase say they wouldn’t be able to afford certain events and activities this summer without it, 30% use BNPL to pay for their necessities, such as groceries. It’s no surprise that nearly three-quarters (72%) of BNPL users say they are more reliant on BNPL services than they have been in the past.
Buy now, pay later services help Americans afford certain expenses they’d otherwise be unable to afford, but in some cases, they can also encourage risky spending behaviors. A large majority of Gen Z BNPL users (77%) say that BNPL has encouraged them to spend more than they can afford, with 38% of Gen Z saying they owe or expect to owe anywhere from upwards of $500 to $2,000 in BNPL purchases from this year.
Zooming out, debt is in the cards for 22% of Americans this summer, and 32% of Gen Z. More than one-third (42%) of Americans who expect to take on debt say that number could range anywhere north of $1,000 to $4,000, which is also the case for 40% of Gen Z.
“The pressure to make the most of summer can often lead to justifying overspending, even if it’s not in your best interest long-term,” said Courtney Alev, consumer financial advocate at Intuit Credit Karma. “The best approach is to make plans that bring you joy, but only if they won’t add financial stress. If you’re going to spend the whole experience worrying about how to pay for it, it’s likely not worth it. Take time now to review your financial situation and decide what’s within your means. Advanced planning is the best way to make sure you stick to a budget while still filling the calendar with fun summer activities that won’t cause financial regret.”
Methodology
This survey was conducted online within the United States by Qualtrics on behalf of Intuit Credit Karma on May 13, 2025, to May 18, 2025, among 1,015 adults ages 18 and older.