2025 Holiday Shopping Data: Americans Are Cutting Spending Amid Inflation, Tariffs 

Americans' Holiday Spending | What Could Help Holiday Budgets | Blame for Rising Holiday Costs | Tariffs' Effects on Holiday Spending | Holiday Spending Debt | Where to Shop | Politics' Influence on Holiday Spending

Holiday shopping isn’t all fun and games. In fact, two-thirds of Americans (68%) say the holidays have become more financially stressful than joyful, according to a new Clever Real Estate poll of 1,000 Americans.

Over the past few years, persistent inflation has stretched household budgets as the cost of gifts has increased. But this holiday season, the financial pressure feels even greater, with 72% of Americans saying the economy is worsening as the holidays approach.

Sweeping tariffs have raised the price of toys and other goods, making it more difficult for Americans to find affordable options. At the same time, the temporary expiration of Supplemental Nutrition Assistance Program benefits was a lasting financial blow — leaving many with less money for essentials and even less for holiday spending. 

Amid these financial challenges, more than 1 in 3 Americans (38%) say this is the first year they're worried about how they're going to afford holiday shopping.

A lack of disposable income has consumers tightening their budgets this holiday season. More than half of Americans (54%) intend to cut back this year, with the average shopper planning to spend $550 — down from $600 last year. 

Despite lowering their budgets, 40% of Americans say they still cannot comfortably afford gifts, and 75% wish there was less pressure to spend a lot of money during the holidays.

Keep reading to learn how high prices are impacting Americans' spending this holiday season.

Shoppers Plan to Spend Less This Holiday Season Because of Inflation

Americans have endured plenty of financial obstacles in 2025. 

From tariff-driven price increases to mass layoffs and the loss of government benefits, it's no surprise 41% of Americans say their finances aren't better than in 2024, and 55% are worried about money heading in to the holiday season. 

As a result, more than half of shoppers (54%) plan to reduce their holiday spending this year. Americans say they'll spend a median of $550 on gifts this year — down $50 from the $600 they spent in 2024.

The main reasons shoppers are cutting back on holiday spending in 2025 are:

• Inflation has made products too expensive (55%)
• They are cutting expenses (54%)
• They need to save more (47%)
• Tariffs have made products too expensive (38%)
• They spent too much last year (22%)
• They lost income (21%)
• Losing SNAP benefits negatively impacted their finances (15%)

Although many Americans plan on decreasing their holiday spending, 27% of those who are cutting back say they would be hurt if their family and friends spent less on gifts for them.

On the other end of the spectrum, 46% of Americans say they intend to spend the same amount or more on gifts this year, but many of those shoppers aren't doing so by choice. Nearly half (47%) say they have to spend more because inflation has increased the cost of goods and services.

Although many shoppers feel forced to stretch their budgets, others say they can absorb higher costs and spend more on holiday giving because:

• They have saved more money (27%)
• They have more income (21%)
• They decreased other expenses (13%)

Although most Americans are shopping this holiday season, others are simply opting out. Nearly 1 in 10 (9%) don't plan to do any holiday shopping in 2025.

Of those who aren't buying gifts, 50% say it's because they can't afford it. That's nearly double the next most common reason, which is that they never shop for the holidays (28%).

Americans may also forgo holiday shopping because:

• Inflation is too high (20%)
• They want to avoid crowds of other shoppers (9%)
• They don't have anyone to buy for (8%)
• They don't celebrate the holidays (7%)

Women Are Nearly 20% More Likely Than Men to Reduce Holiday Spending

As the holidays approach, women often take on the bulk of the planning, hosting, decorating, and gift giving. When prices rise, the responsibility to deliver a memorable holiday can feel heavier.

It's no wonder women (59%) are about 18% more likely than men (50%) to be concerned about their finances this holiday season.  

As a result, 57% of women plan to cut their holiday spending. Women intend to reduce their spending by 15% — from $600 in 2024 to $510 in 2025. 

Meanwhile, only 48% of men plan to trim their spending, and those who do expect to cut back by a much smaller margin — just a 5% drop from $630 in 2024 to $600 in 2025. 

Despite lowering their budget, only 55% of women say they can afford holiday spending this year, and 80% wish there was less pressure to spend a lot of money on gifts. For comparison, 69% and 67% of men feel the same, respectively. 

Financial concerns also tend to weigh heavily on younger generations during the holidays. While 41% of boomers say they're concerned about their finances this holiday season, that percentage jumps to 67% of millennials and 64% of Gen Z. 

Just because they're worried doesn't mean they'll change their spending habits, however. Millennials actually plan to spend the most of any generation — doling out $750 on gifts, which is $50 more than they reported spending last year. 

The extra spending could reflect the fact that many millennials need to buy more gifts for their young children, as well as their desire to maintain traditions and keep up with social expectations, even if prices are rising.

Gen Z also plans to increase their holiday spending this year, from $500 in 2024 to $550 in 2025.

Meanwhile, boomers plan to spend the least at $500, followed by Gen X at $540.

After spending $695 last year, Gen X plans to cut holiday spending by 22% — the largest decrease among all generations. This cautious approach likely reflects the dual financial pressures of supporting college-aged children and aging parents, prompting Gen X to be more careful with their discretionary spending during the holidays.

More Than Half of Americans Are Cutting Back on Holiday Spending to Afford Basic Living Expenses

Many Americans are finding it hard to muster much holiday cheer this year, with 72% saying the economy is worsening as the holidays approach. 

With little relief from rising costs, holiday shopping may feel like just another financial burden to struggling families. More than half of Americans (56%) are cutting back on holiday spending to afford basic living expenses, such as food, housing, or utilities.

The financial strain is even greater among the 25% of respondents who say they lost government benefits in 2025. Among those households, 77% say they are cutting back on holiday spending to afford the essentials — underscoring the critical role those programs play in helping families manage everyday costs and special occasions.

As families plan their holiday feasts, many will be hit hard by grocery prices, which have climbed nearly 30% since 2020. What's more, virtually all major grocery items are now more expensive than they were a year ago, with costs for some prices rising significantly because of tariffs. Coffee prices, for example, have jumped 20% in the past year, while beef has risen 19% in the same time period. 

In November, the Trump administration rolled back tariffs on some food products amid mounting pressure over prices, but it will take time before Americans see relief at the checkout line. With the holidays just around the corner, many shoppers don't have the luxury of waiting for prices to decrease. 

More than 2 in 3 Americans say lower grocery prices (69%) would help them this holiday season, as well as:

• Lower utility costs (50%)
• A pay increase or bonus (44%)
• Lower taxes (40%)
• Lower tariffs (38%)
• Lower health care costs (32%)
• Lower housing costs (30%)

About 1 in 4 Americans (24%) say another key way to ease financial pressure this holiday season is through SNAP benefits. Although benefits resumed in November after a temporary pause during the government shutdown, new laws are set to kick millions of people off the anti-hunger program in the coming months. 

Yet instead of cutting benefits, 60% of Americans actually support increasing SNAP benefits during the holiday season.

Families struggling to make ends meet may be forced to rely on the generosity of others this holiday season, but rising costs could deter the spirit of giving. Although a majority of Americans (55%) feel guilty for spending money on gifts when others can't afford essentials, fewer than half (49%) plan to donate money or gifts this holiday season.

Americans Are Most Likely to Blame the Trump Administration for High Prices This Holiday Season

Not even the Grinch managed to steal holiday cheer quite like this year’s high prices. Instead of blaming the curmudgeon from Whoville for rising costs this holiday season, shoppers are pointing the finger at the administration in Washington. 

Americans are most likely to hold the Trump administration responsible for the expensive holiday season. In fact, they are 2.5x more likely to blame the current Trump administration (30%) than the former Biden administration (12%) for this season's high prices. 

Meanwhile, about 1 in 4 Americans (28%) say inflation is the biggest contributor to high prices, and more than half of shoppers (54%) say they'll have to change their typical holiday spending habits this year because of it. 

Consumers are responding to inflation in contradictory ways. 

Some shoppers plan to spend less, with 55% of those people saying it's because inflation has made products too expensive. Meanwhile, others intend to spend more, with 47% saying they'll have to because inflation has raised the cost of items they plan to buy.

Although consumers have endured years of rising costs because of inflation, this holiday season feels particularly costly — prompting many to blame specific policies for the surge in prices. About 1 in 6 Americans (16%) blame high holiday prices on Trump's tariffs.

Nearly 3 in 4 Americans Believe Tariffs Will Make This the Most Expensive Holiday Season Yet

Whether it's clothing, electronics, or the hottest new toy, many of the season's go-to gifts are set to cost extra this year thanks to Trump's tariffs. 

The tariff rate varies significantly by country and product type, but some imported goods face duties as high as 40%. Much of this additional cost makes its way to consumers, with 71% of Americans saying they believe retailers pass the full cost of tariffs on to the public. 

It's no wonder another 71% of Americans say tariffs will increase the cost of gifts they plan to buy, and 72% say tariffs will make this the most expensive holiday season yet.

In response to tariffs, nearly half of Americans (46%) say they'll have to change their typical holiday shopping habits. If tariffs raise prices on imported items, Americans say they would most likely:

• Try to find a cheaper alternative (30%)
• Skip purchasing that item altogether (26%)
• Buy fewer gifts to afford it (20%)

Although the Trump administration has argued that tariffs create new incentives for consumers to buy domestic items, just 15% of shoppers say they would buy a similar, but more expensive, American-made product.

Not only do tariffs drive up the cost of holiday goods, they also limit what's available through prohibitive prices that reduce the supply of items in the market. More than half of Americans (56%) think tariffs will decrease the availability of gifts they plan to purchase this holiday season, potentially limiting options and making it difficult to find popular items. 

With concerns about product shortages, more than 1 in 3 Americans (37%) plan to start shopping for the holidays earlier than usual. In fact, more than half of Americans (52%) started shopping before Black Friday.

More than 1 in 4 Americans Worry They'll Go Into Debt Shopping for the Holidays

Despite rising prices and tighter budgets, 44% of Americans say they're willing to spend whatever it takes to make people happy for the holidays. 

With that mindset, there's no need to adhere to a financial plan, with 1 in 3 consumers (33%) saying they do not follow a budget when holiday shopping, making it more likely they'll lose track of their spending.

This behavior can make it all too easy for shoppers to go overboard, with nearly 2 in 3 (63%) saying they've overspent during the holiday season. 

It's no surprise, then, that more than 1 in 3 Americans (37%) have previously gone into debt shopping for the holidays. This year, about 1 in 4 (28%) are worried they will go into debt because of their holiday spending, with millennials (40%) and Gen Z (37%) twice as likely to have this concern compared to boomers (17%).

Shoppers may try to stay out of debt by paying with cash (55%), a debit card (52%), or a credit card they intend to pay off on time (45%). But just because credit card users plan to pay off their debt immediately doesn't mean they'll actually be able to.

Meanwhile, 1 in 7 Americans intend to shop for the holidays with buy now, pay later programs (14%) or a credit card they won't be able to pay off on time (14%). 

Of those who plan to take on credit card debt to buy gifts:

• 71% think they'll rack up more than $500 of debt.
• 50% think they'll rack up more than $1,000 of debt.
• 20% think they'll rack up more than $3,000 of debt.
• 16% think they'll rack up more than $5,000 of debt. 

A majority of Americans are confident they'll be able to pay off their debt from holiday shopping, but for many, it could take quite a while. 

Approximately 45% of consumers don't think they'll be able to pay off their holiday shopping debt within three months, 35% don't think they'll be able to pay it off within six months, and 23% don't think they'll be able to pay it off within one year.

What's more, 1 in 7 (14%) don't think they'll ever be able to pay off their debt from holiday shopping.

Although many shoppers acknowledge they spend too much during the holidays, few feel remorse. About 69% of Americans say they do not regret their holiday spending habits.

Younger generations, however, are the exception. Despite working with tighter budgets, they plan to spend more this holiday season than both boomers and Gen X, likely straining their finances and increasing the odds they'll later regret their purchases.

Gen Z (43%) and millennials (42%) are nearly 2x more likely than boomers (21%) to regret their holiday spending.

Where to Shop: More Than 60% of Americans Would Abandon Small Businesses for Cheaper Prices at Major Retailers

Finding the right gift is the No. 1 priority for holiday shoppers — even more important than buying gifts on sale and staying within budget. 

Americans slightly prefer shopping for the perfect gift in store (83%) rather than online (81%), but 66% plan to do a mix of online and in-person shopping.

About half of consumers (54%) will also split their spending between major retailers and small businesses — although Americans still widely prefer big-box chains. 

An overwhelming 91% say they will buy from major retailers, with 38% saying they will only shop at those stores. Meanwhile, 60% say they will shop at small businesses, but just 6% say they will shop there exclusively.

The preference for major retailers underscores the vulnerability of small businesses. Unlike larger stores, small businesses don't have the financial cushion to absorb higher costs from tariffs, which could force them to raise prices and push customers toward cheaper alternatives. 

About 61% of Americans say they would stop shopping at small businesses if big-box retailers offered significantly lower prices for similar products.

Meanwhile, some Americans are looking beyond traditional retailers for more budget-friendly places to find gifts. More than 1 in 7 Americans (15%) say they will buy gifts from charity shops, such as Goodwill or the Salvation Army, this holiday season.

1 in 4 Americans Will Avoid Shopping at Certain Retailers Because of Their Political Stance

Holidays typically tend to bring people together, but in today’s divided America, even gift giving has turned political as some consumers avoid brands that don't share their values.

One-fourth of Americans (25%) say they won't shop at some retailers because of their political stance, with Gen Z (34%) and millennials (29%) more likely to do so than boomers (19%).

More than half of consumers (56%) who plan to boycott some brands say they would feel uncomfortable receiving a gift from a retailer they oppose, and more than a third (37%) would judge their family members or friends for shopping there. 

Just 15% of the overall respondent pool would judge others' shopping choices, but younger generations tend to be more critical. Gen Z (24%) and millennials (23%) are about 3x more likely than boomers (8%) to judge where their friends and family shop. 

Principles matter, but so do prices. About 59% of Americans would buy an item from a retailer they don't politically agree with to save money. This includes 43% of people who previously said they wouldn't shop at retailers that have an opposing political stance.

Political boycotts of brands may seem more frequent in today's polarized society, but shoppers are more likely to avoid a retailer for practical reasons, such as bad customer service or a lack of transparent pricing.

Nearly half of consumers (46%) say they'd boycott a retailer for non-political reasons — almost double the 25% who would do so because of politics.

Methodology

Clever Real Estate surveyed 1,000 American adults on their views on holiday shopping amid current economic conditions.  This survey was conducted Oct. 29 to 30, 2025.

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