Many Americans Plan Holiday Cuts to Afford Christmas

On November 7, 2026, survey findings showed that holiday spending is putting pressure on household budgets, with many Americans planning to cut back elsewhere to pay for gifts and other seasonal costs. A U.S. News survey found 65 percent intend to reduce spending on necessities to afford holiday shopping.

In a separate Ipsos survey for Thrivent, 68 percent said economic conditions would lead them to reduce outlays in at least one category. Dining out was the most common target, at 44 percent, followed by gifts for family and friends at 32 percent and holiday travel at 31 percent. More than half of those surveyed by U.S. News expected the economy to have a considerable effect on their holiday budget.

Among people scaling back on gifts, two-thirds plan to buy fewer presents overall, compared with 56 percent last year. Nearly half intend to buy for fewer people, while about half plan to choose less expensive gifts.

U.S. residents anticipate an average outlay of $1,011 for seasonal presents, according to a Gallup survey. A NerdWallet report put expected gift spending at $879, down from $1,107 in 2025; those budgeting for presents, trips and additional seasonal expenses expect to spend $2,525 on average.

Credit cards are expected to help cover costs: 74 percent of holiday spenders plan to use one, while 38 percent expect to use buy now, pay later services. Among the latter group, 38 percent do not expect to pay their balances completely by the due date, versus 25 percent of credit card users who anticipate struggling to clear their balances.