TULSA, Okla. — New surveys reveal Americans opening their wallets wider this holiday season, even as nearly one-third are still paying off credit card debt from last year's celebrations.
Holiday shoppers plan to spend nearly $200 more on gifts this year compared to 2024, according to NerdWallet's latest Holiday Spending Report.
The spending surge is happening against a backdrop of financial strain. The NerdWallet survey found 31% of 2024 holiday shoppers and travelers who used credit cards still haven't paid off spending from that period.
Travel costs add to holiday expenses
The NerdWallet survey found beyond gift-giving, 45% of Americans plan to travel this holiday season, spending an average of $2,586 on flights and hotels. Collectively, Americans will spend $242 billion on holiday gifts alone, with travel adding another $311 billion to the seasonal spending spree.
Tariff concerns drive shopping behavior changes
Worries about potential price increases are already changing how people shop. Joe Adamski, Senior Director with consulting firm Procurability, said consumer surveys show widespread concern about costs.
"Trepidation about what ultimately these costs are going to be this year... about 80% of respondents in surveys are saying that they do expect that tariffs are going to cause a lot of the things that they were planning to buy for the holidays to cost more," Adamski said.
In response, 28% of shoppers say they'll shop earlier than usual to avoid potential shortages, while 24% plan to buy fewer gifts due to tariff-related price increases.
Categories most likely to see price impacts include toys and consumer electronics, since many of these items are manufactured overseas. Gaming systems, cell phones and other electronics may be particularly affected according to Adamski.
Strategies to stretch holiday budgets
Financial experts recommend several approaches to manage holiday spending:
- Shop seasonal sales between now and Christmas
- Use airline miles and credit card points to reduce travel and gift costs
- Consider gifts not tied to tariff-affected goods, such as gift cards for experiences or locally-made items
- Look at domestically produced alternatives like food and drink gift baskets or housewares
NerdWallet's Sara Rathner emphasizes the importance of honest communication about financial limits.
"Be honest with your loved ones. If you have to cut back this year, and a lot of people do, then talk about it, because people who care about you are going to be on your side if you have financial goals you're trying to meet," she said.
The survey also revealed that 63% of Americans would prefer their family's holiday traditions to be less focused on gifts, but only 20% have actually discussed this with their loved ones.
As the holiday season approaches, consumers face the challenge of balancing their desire to celebrate with family and friends against the reality of impact of higher prices and existing debt obligations on their personal budgets.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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