Holiday Spending Survey: 2025 Trends And Debt Outlook

Americans are navigating a complex economic landscape this holiday season, with inflation, high interest rates, and lingering debt shaping spending decisions. Our exclusive holiday spending survey of over 2,000 U.S. adults uncovers detailed trends in budgets, gifting habits, travel plans, payment methods, and debt expectations heading into 2026. While many plan to scale back, generational differences and economic concerns reveal a divided consumer base.

Executive Summary

The 2025 holiday season brings cautious optimism mixed with financial restraint. Key findings from the survey include:

• Average planned holiday spending per household stands at $1,248, down 8% from 2024’s $1,356.
• 42% of respondents plan to spend less than last year, citing inflation (29%), tariffs (15%), and other economic factors (9%).
• 35% expect to carry credit card debt from holidays into 2026, with 18% projecting payoffs extending to summer or later.
• Travel plans are cooling: only 21% plan flights or hotel stays, versus 27% in 2024.
• Gen Z and millennials are more optimistic about spending up (41% and 33%), while Gen X and boomers anticipate cuts.

These trends reflect broader economic pressures, including stagnant wage growth and rising costs, prompting smarter financial strategies like buy now, pay later (BNPL) and early budgeting.

Overall Holiday Spending Trends

Holiday spending is projected to dip amid persistent inflation and high borrowing costs. According to our survey, the average American household plans to spend $1,248 on gifts, travel, food, and decorations— a notable decline from $1,356 last year. This 8% reduction aligns with Nationwide’s findings that 42% of consumers intend to cut back, with 49% buying fewer gifts, 38% choosing cheaper options, and 20% skipping gifts entirely.

Inflation remains the top culprit, influencing 36% of shoppers to alter habits. Middle-income earners ($50k-$99k) express the highest concern (45-49%) about rising prices, as their budgets feel the pinch most acutely. Bankrate notes that while 27% expect to spend more, 30% plan less, with 43% holding steady.

Parents face unique pressures: 33% with kids under 18 plan travel (down 13 points), compared to 21% overall. Despite concerns, 41% worry gifts will cost more, yet only 24% have formally budgeted.

Holiday Budget Breakdown

Survey respondents detailed allocations across categories. Gifts dominate at 52% of budgets, followed by travel (18%), food/entertaining (15%), and decorations (10%). Here’s the average breakdown:

• Gifts: $649 (52% of total)
• Travel: $225 (18%)
• Food & Entertaining: $187 (15%)
• Decorations: $125 (10%)
• Other (Charity, Cards): $62 (5%)

Gen Z budgets skew toward experiences (travel/food up 22%), while boomers prioritize gifts (58%). Women plan $1,189 on average vs. men’s $1,312, reflecting different priorities. Early shopping is rising: 28% started in October, up from 22% last year, to lock in prices.

Gifting Habits and Priorities

Gifting remains central, but selectivity is key. 65% plan gifts for immediate family, 48% for extended family, 39% for friends, and 22% for coworkers. Top gifts include clothing (44%), toys/games (37%), electronics (29%), and gift cards (27%).

Scaling back is prevalent: 49% of cutters buy fewer items, driven by budget strains (29%) and stress (27%). One in five (20%) may skip gifts altogether. Younger shoppers favor sustainable/ethical gifts (Gen Z: 51%), while older prefer practical items.

Holiday Travel Plans

Travel enthusiasm is waning. Only 21% plan air travel or hotel/short-term rentals for Thanksgiving/December holidays, down from 27% in 2024. Men dropped 10 points, parents 13 points. High costs and debt are deterring 36% from travel.

Among travelers, 63% prefer credit cards (40% paid in full, 23% carrying balance), 44% debit/cash, 32% rewards points. Average travel spend: $1,250 for flyers, $875 for drivers.

Payment Methods and Financing

Credit cards lead (55% overall), but cash/debit (49%) is surging for control. BNPL appeals to 12%, especially millennials (17%). Gen Z leans debit (70%), boomers credit (62%).

Alarmingly, 35% plan credit card use, but only 17% always pay in full—leading to 70% carrying balances into 2026. Affirm’s survey shows 47% surprised by interest fees previously. LendingTree reports 37% averaged $1,223 holiday debt.

Credit Card Debt and Financial Hangover

A ‘financial holiday hangover’ looms: 70% of card users expect 2026 balances, 18% until summer. Average debt: $1,223 per LendingTree. Experts urge early payoff.

Personal loans emerge as alternatives: lower rates (avg. 11.5% vs. 21% cards) for consolidation. 44% want total cost transparency at checkout. AI tools aid 44% in planning.

Tips for Managing Holiday Debt

Financial experts recommend:

• Budget Early: Use apps to track; allocate 20% buffer.
• Pay Cash/Debit: Avoid interest traps.
• Debt Consolidation: Personal loans at 8-15% APR beat cards.
• BNPL Wisely: 0% offers, but watch fees.
• Side Hustles: 22% plan extra income.

Nationwide advises prioritizing debt payoff (39% see as 2026 challenge).

Generational Differences

Younger gens drive spending optimism but face higher debt risk.

Frequently Asked Questions (FAQs)

What is the average holiday spending in 2025?

Average household spend is $1,248, down 8% from 2024, focused on gifts (52%).

Will Americans carry holiday debt into 2026?

Yes, 70% of credit card users expect balances, 18% until summer or later.

How can I avoid holiday debt?

Budget early, use cash/debit, consider personal loans for consolidation over high-APR cards.

Are people cutting back on holiday travel?

Yes, only 21% plan flights/hotels vs. 27% last year.

What influences holiday spending cuts?

Inflation (36%), budget strain (29%), economic concerns.

This article is general information, not personal financial advice. Consider your own situation, or speak with a licensed adviser, before acting on it.