The holidays are meant to be a season of joy—filled with family gatherings, good food, and thoughtful gifts. But for many Americans, it’s also a season that stretches their budget and their stress levels.
According to a 2025 Deloitte survey, the average American will spend over $1,500 celebrating this season. That includes gifts, entertainment, and decorations — all of which can quickly add up. And while some are trimming costs, seven in ten Americans admit they’re stressed about the financial side of the holidays.
Let’s break down where that money is going — and how to make it go further without missing out on the magic of the season.
Where the Holiday Dollars Go
Deloitte found that the average holiday budget includes:
- $694 for experiences
- $505 for gifts
- $252 for holiday gathering / hosting
- $145 for clothing and décor
Once you add in travel costs, individuals could easily spend more than $2,000 on holiday celebrations.
Why So Many Feel the Holiday Strain
In a 2025 Talker Research survey, 70% of Americans said they’re stressed about holiday spending, and more than half confessed they’re dreading the season because of it.
The result? Many households end the holidays not just with happy memories — but with higher balances and tighter budgets in January.
Smart Ways to Stretch Your Holiday Budget
Even with rising costs, you can make your holiday money go further with a few intentional steps:
1. Set a Spending Plan and Stick to It
Start by deciding how much you can realistically spend on the holidays – from gifts and decor to travel and food. Then, break that total number into each category. Having clear limits helps you make trade-offs early and avoid surprises later.
Tip: Open a separate savings account just for holiday spending. Contributing a small amount throughout the year can make next season’s shopping easier.
2. Prioritize What Matters Most
Ask yourself: which holiday traditions truly bring you joy? If elaborate parties or costly travel add more stress than satisfaction, scale them back and focus on the moments that matter most — like time with family or simple shared experiences.
3. Shop Smarter, Not Harder
Take advantage of early sales or price-tracking tools. Deloitte found that one-third of consumers are planning to use AI for their holiday shopping to help them search for better deals.
Compare prices before you click “buy,” and utilize Google’s Shopping Insights to find the price history and range for products to avoid overspending.
Consider handmade, experiential, or group gifts.
4. Plan Affordable Celebrations
Hosting doesn’t have to mean overspending. Try a potluck-style gathering or serve a few signature dishes instead of a full spread. You can also reuse decorations from past years. Small adjustments can save hundreds without sacrificing cheer.
5. Avoid the January Bill Blues
Use cash or your debit card whenever possible to avoid post-holiday credit card shock. However, if you use credit cards for convenience or rewards, make sure you have a payoff plan in place. The goal: enter the new year with memories — not debt.
6. Start Planning for Next Year Now
Once the season wraps up, review what worked and what didn’t. Set a goal to save a certain amount each month for next year’s holidays. Even $25–$50 per month can make a big difference when November rolls around again.
Making the Season Bright — Without Breaking the Bank
The holidays shouldn’t leave you financially frazzled. By setting priorities, creating a plan, and spending mindfully, you can enjoy the season for what it’s meant to be: a time of gratitude, giving, and connection.
A little preparation now can make this year’s celebrations — and next year’s — a lot more joyful.
Sources: 2025 Deloitte Holiday Retail Survey, “Why 70% of Americans are stressed about spending this holiday season” Talker Research on behalf of Current
