A late October survey from U.S. News & World Report finds that the majority of Americans (79%) are concerned about having enough money for holiday gifts this year, an 11-percentage-point increase from last year. About 41% are “very” concerned, while 39% are “slightly” concerned.
This may come as no surprise since 71% of respondents say they feel they’re living paycheck to paycheck. What’s more, this number has been steadily increasing for the past two years. In 2023, roughly 53% of Americans felt they were living paycheck to paycheck. In 2024, that number was 65%.
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How Much Americans Plan to Spend on the Holidays This Year
Of the 1,200 consumers surveyed, 32% say they’ve already started their holiday shopping, with about 17% saying they plan to wait until Black Friday. More than four in 10 Americans plan to keep shopping hauls to $500 or less. Here’s the breakdown by cost: Despite income level, a plurality of Americans plan to spend $500 or less on gifts this year. The only income level where we see that change is Americans who make over $110,000. Most (27%) of those in this income bracket plan to spend more than $1,200 on gifts.
While 17% of respondents plan to wait until Black Friday to start their shopping, that doesn’t mean other consumers won’t participate. About 22% of all respondents plan to shop on Black Friday, while about 20% plan to shop on Cyber Monday, an increase of 8 points from last year.
Plus, 32% say they plan to shop on both money-saving days — a 12-point increase from last year. In contrast, 26% say they plan to opt out of both this year, the same as last year.
When it comes to where they plan to do their shopping, 60% of consumers say they’ll shop both online and in-store, no matter the age group.
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Outside Influences
When asked if the government shutdown has negatively affected their holiday plans, 56% say yes. Roughly 36% say they had to adjust their budget for gifts, while 12% say they had to adjust their travel plans. Another 8% had to cancel their travel plans entirely.
What’s more, with AI being a hot topic, about 55% of respondents plan to use AI to help them find items — a 3-point increase from last year. Of the 45% who say they don’t use or plan to use AI, they cite wanting to do the finding themselves as their main motivator (47%).
Where Americans Are Feeling High Prices the Most
As tariffs continue to contribute to higher prices, many Americans have been feeling the effects since back-to-school season. When asked where they feel these higher prices the most, Americans overwhelmingly say groceries. Here’s a breakdown of where consumers are feeling those high prices and how they compare to 2024: When asked how their spending will compare with last year’s, 66% say they think they’ll spend less. About 22% say it’s because they need to spend money elsewhere — a 12-point increase from last year.
Another 25% say they have less money to spend, a 12-point increase from last year. And roughly 19% are spending less because they’re worried about the economy.
Meanwhile, 34% say they’ll spend more this year — and 22% attribute that to higher prices.
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How Americans Plan to Use Credit Cards This Holiday Season
The majority of Americans (63%) plan to use one to two credit cards for their holiday spending, with about 34% saying they have a specific goal in mind when it comes to credit card rewards. Another 34% say they don’t have a specific spending plan but are generally mindful of which card to use when.
While, unfortunately, 40% of Americans don’t plan on redeeming credit card rewards to help with holiday spending this year, the other 60% have a plan.
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How Americans Plan to Pay for Expenses
When asked how consumers plan to fill in the gaps when it comes to affording holiday expenses, many say they are cutting back significantly. Here’s a breakdown of how Americans plan to cover holiday expenses this year: When asked if they expect to go into debt because of holiday expenses, 53% say they plan to pay off all of their purchases right away or use cash. This is a 5-point decrease from last year, indicating that more Americans are short on funds.
This piece was edited by Ray Frager.
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Survey: 68% Worried About Having Enough Money for Gifts
Survey: 85% of Americans Concerned About Rising Back-to-School Prices Due to Tariffs
Survey: 79% Concerned About Having Enough Money for Gifts originally appeared on usnews.com
