79% of Americans plan modest holiday spending in 2025: Survey

The 2025 Season of Spending report, published by the Achieve Centre for Consumer Insights think tank, reveals 26 per cent of households haven't set aside any money for holiday spending, leading many consumers to rely on credit cards, buy now, pay later loans and other forms of debt to get by this year. Most consumers plan modest holiday spending: 29 per cent expect under $500 in debt, 12 per cent over $1,000. Over half anticipate no financial recovery time, while others expect to stabilise by March or later. About 60 per cent aren’t travelling, and those who do favour low-cost transport and lodging options.

More than half of consumers expect to keep the same number of gifts and other purchases they will buy (55 per cent) and spend about the same amount (51 per cent) as they did during the 2024 holiday season. In addition, 32 per cent plan to buy fewer gifts and other holiday purchases in 2025 and 28 per cent expect to decrease their 2025 holiday spending from a year ago. Only 14 per cent plan to buy more gifts this year, while just 20 per cent expect to increase holiday spending in 2025.

"In a year marked by economic uncertainty, price hikes and high interest rates, most households are heading into the 2025 holiday season cautious about their spending," said Achieve Centre for Consumer Insights analyst Austin Kilgore. "These insights suggest an overall retrenchment mentality for many Americans; however, we also know that even when consumers go into the holiday season with the best intentions, many still enter the New Year with debt they didn't expect."

Still, there are some signs of resiliency, as the majority of consumers saying they are ‘very confident’ (55 per cent) or ‘confident’ (31 per cent) they can maintain a manageable level of spending and debt during the holiday season, as per the survey.

"The gap between knowing the right strategies and actually implementing them can be daunting, especially at the time of the year when it's easy to get carried away by all the excitement," Kilgore said. "It's important for consumers to be intentional about their spending and communicate with friends and loved ones about setting realistic expectations."

When consumers encounter financial challenges or fall short of their holiday spending goals, debt can often feel like an easy fix that will enhance the holiday experience. But when the holiday bills come due, consumers often regret those choices. When asked to reflect on their 2024 holiday spending, 36 per cent of consumers said they would have enjoyed the season more if they had spent less money and 28 per cent believe the holidays would've been less enjoyable had they spent more last year. Conversely, 24 per cent said they would have enjoyed the 2024 holidays more if they had spent more, while only 12 per cent believe spending less would have made the season less enjoyable.

ALCHEMPro News Desk (RR)