- Nearly half (47%) of Americans feel stressed about affording the holidays this year, and 31% are entering the holiday season with more than $5,000 debt
- 81% of consumers are concerned about tariffs impacting their holiday spending this year
- Over half of parents with young children anticipate their children will ask for more than they can afford this holiday season, and 49% say they’re going to have to explain to their kids that they won’t be getting everything on their wish list due to financial stress
For many Americans, this holiday season feels more stressful and expensive than it does merry and bright.
According to new data from Intuit Credit Karma, nearly half of Americans surveyed (47%) say they’re stressed about affording the holidays this year, and over a third (39%) admit they feel pressured to spend more than they can actually afford, a sentiment felt even more strongly among younger generations (51% for Gen Z and 50% for Millennials).
Many consumers are heading into the holidays with less room to spend freely, as 40% are already holding existing debt, some up to $5,000 (31%).
With debt levels high and prices continuing to rise, many consumers are scaling back this year. 63% of holiday shoppers are being cautious of overconsumption, and 47% plan to have an honest conversation with friends and family about what they can realistically afford. Even traditions are on the chopping block, with 41% of Americans planning to skip some holiday activities due to cost.
Cutting back, out of necessity
When asked which factors have the biggest impact on their holiday budgets, Americans cited current economic uncertainty (33%), a general desire to save money this year (33%), and a lack of or reduced income (27%).
Additionally, over 80% of Americans are concerned about tariffs impacting holiday costs, which is prompting more intentional spending behaviors including:
- Shopping sales more aggressively (36%)
- Cutting back on discretionary spending (32%)
- Using loyalty programs and rewards points (31%)
- Shopping at discount stories (29%)
- Cutting down gift lists (28%)
- Not traveling / traveling less (19%)
When it comes to planning for holiday expenses, consumers anticipate gifts will take up the largest share of their budget (64%), followed by groceries for holiday meals (51%).
To help stay within budget, many are opting for non-traditional gift giving approaches. While a quarter of consumers still favor traditional material gifts, others are embracing creative alternatives, such as:
- A “one gift” rule (31%)
- Homemade gifts (29%)
- Gifting experiences, like tickets to an event, concert, or trip (24%)
- Gifting necessities like household items, subscriptions/memberships, or groceries (22%)
- Charitable donations (14%)
Shopping smarter, not harder
The financial squeeze has shifted not only how people spend, but also when they spend. 38% of Americans have started their holiday shopping earlier than previous years, and of those, 44% say they did so to spread out the financial impact. Others got a jump start because they wanted to reduce stress later in the season (43%), ensure gift availability (41%), avoid crowds and long lines (38%), and get ahead of prices continuing to rise (37%).
Parents are feeling the strain
With kids’ extensive (and expensive) wish lists, filled with everything from the latest iPhone and LEGOs to Lululemon and Labubus, parents are facing tough financial choices this holiday season. Among parents with one or more children under 18, over half (55%) anticipate their kids will ask for more than they can afford, and 49% say they are going to have to explain to their kids that due to financial stress, they won’t be getting everything on their wish list this year. While 45% are willing to go into debt to make the holidays feel special for their kids, 65% plan to buy practical or necessary gifts to save on inevitable costs down the line.
Holiday season guilt is weighing on many parents, with 52% saying they feel they aren’t doing enough to make the season memorable, while 47% worry their kids will be disappointed with the quantity of gifts they receive compared to their peers.
According to parents, the top gifts children are asking for this year include:
- Toys & games such as Barbie, fidget toys, LEGO, or slime (54%)
- Electronics & tech such as the iPhone 17, Nintendo Switch, Apple Watch, or OURA Ring (47%)
- Entertainment such as concert tickets, sporting event tickets, or music festival tickets (32%)
- Trendy apparel & accessories brands such as Brandy Melville, Lululemon, or Princess Polly (29%)
- Collectibles & novelty items such as Labubu, Sonny Angels, or misc. blind boxes (28%)
“As Americans navigate a holiday season marked by rising debt and financial stress, it’s crucial to plan ahead and audit your finances to understand what you can and can’t afford before the shopping begins,” said Courtney Alev, consumer financial advocate at Intuit Credit Karma. “By outlining a realistic budget and making thoughtful purchases, you can spread out expenses and avoid last-minute pressure. Don’t be afraid to communicate openly with friends and family about your spending limits, and explore creative, budget-friendly ways to celebrate. The goal isn’t to spend the most, it’s to enjoy the season without carrying financial stress into the new year.”
Methodology
This survey was conducted online within the United States by Intuit Credit Karma on October 3, 2025, to October 7,2025, among 1,013 adults ages 18 and older.