Holiday Spending in 2025: Value, Meaning, and Smarter Choices

As the festive season approaches, Americans are rethinking how they spend during the holidays. In 2025, holiday shopping is less about extravagance and more about intentionality, emotional value, and financial mindfulness. Whether you're buying for loved ones or planning a celebration, understanding the latest trends can help you make smarter choices without sacrificing joy.

 

According to PwC’s 2025 Holiday Outlook, average holiday spending is expected to drop by 5%, marking the first decline since 2020. Gen Z is leading the frugal movement, cutting budgets by 23%, while baby boomers are increasing their spending by 5%, prioritizing family gifting.¹

 

Notable trends:

• 78% of consumers are seeking lower-cost options and deeper discounts.
• Gift cards are surging in popularity for their flexibility and budget control.
• Self-gifting is on the rise, especially among younger shoppers.
• Resale and upcycled products are gaining traction, reflecting sustainability values.

Holiday spending often extends beyond gifts—think travel, meals, decorations, and entertainment. Budget smarter this year to avoid the holiday debt trap. In 2025, Americans are expected to spend an average of $1,638 on holiday-related expenses, with 80% of budgets focused on gifts and food.²

 

Tips for financial planning:

• Use the 1–1.5% rule: Total holiday spending should not exceed 1–1.5% of your annual income.³
• Plan early: Nearly 80% of gift budgets are spent by Cyber Monday, so early shopping helps avoid last-minute markups.
• Track all expenses: Include travel, wrapping supplies, and spontaneous outings in your budget.
• Consider using a holiday gift budget calculator to set realistic limits and avoid overspending

Generational Spending Patterns

Holiday spending varies widely by age group:

• Gen Z (18–27): Focused on self-care, sustainability, and budget-conscious choices.
• Millennials (28–43): Spending more on family gifts while balancing mortgages and childcare.
• Baby Boomers (60+): Increasing spending with a focus on tradition and generosity

This holiday season, spend with purpose. Holiday 2025 isn’t about spending more—it’s about spending better. Whether you're navigating tight budgets or looking to make meaningful connections, the key is to align your spending with your values. Thoughtful planning, early shopping, and a focus on emotional resonance can help you celebrate the season without financial stress. “It’s not how much we give, but how much love we put into giving.” – Mother Teresa

 

 

1 https://www.credaily.com/briefs/holiday-spending-trends-2025-drive-value-focused-shopping-shift/

2 https://www.pwc.com/us/en/industries/consumer-markets/library/holiday-outlook-trends.html

3 https://www.uccu.com/articles/holiday-spending-smart-tips/