Holiday spending surveys paint a broad picture of averages, but behind every statistic are real families making tough choices. This year, as costs rise, parents are navigating wish lists, budgets, and the pressure to deliver a “magical” holiday without overspending. From strategic saving to practical gifts, families are adapting. Here’s a look at how real households are approaching holiday spending in 2025, with insights into the trade-offs, priorities, and emotional realities behind the numbers.
The Broader Economic Context
Recent data shows that Americans expect to spend nearly $2,800 on the holiday season, a significant jump from 2024. Millennials lead the way with estimated spending over $4,400, while Gen Z plans to spend around $2,200. This increase reflects broader economic pressures, including inflation and lingering financial uncertainty.
More than half of consumers (64%) anticipate that gifts will take the largest share of their budget, while nearly half (47%) report feeling stressed about affording the holidays. This anxiety is particularly acute among younger generations, with 51% of Gen Z and 50% of Millennials admitting to pressure to overspend.
How Families Are Adapting
To cope, families are becoming more intentional with their spending. Nearly 80% are actively hunting for coupons and deals, and over half (53%) are setting aside money throughout the year. Many parents are also making trade-offs: 65% plan to buy more practical gifts, while others are limiting quantities or opting for homemade or experience-based presents.
This shift isn’t just about saving money; it’s about recalibrating expectations. The idea of a lavish, over-the-top holiday is fading for many, replaced by a more grounded approach that prioritizes needs and experiences over excessive material gifts.
Real Family Budgets: A Snapshot
To illustrate these trends, here’s a breakdown of how several families are approaching their holiday budgets this year:
- New York City Double-Income Household (Twin Toddlers): $900. This family prioritizes developmental toys and practical investments, including a $150 Lovevery play kit and an $800 Veer wagon.
- Chicago Double-Income Household (Ages 3 & 11): $1,500. The budget varies significantly by age, with the 11-year-old’s requests for designer items pushing spending higher.
- Missouri Amish Family (Seven Children): $30–$50. This family focuses on essential items like socks and handmade gifts, viewing Christmas as a religious observance rather than a consumer event.
- Metropolitan Double-Income Household (Hanukkah, Two Children Under 12): $300. This family opts for a streamlined approach, prioritizing thoughtful gifts over quantity.
- Florida Double-Income Household (Ages 2 & 14): $1,500 + Family Trip. This family balances tangible gifts with a shared experience, reflecting a blend of material and experiential spending.
- Philadelphia Double-Income Household (Cautious Approach): $1,000. After a period of financial uncertainty, this family is being deliberately cautious with spending, prioritizing needs over extravagant gifts.
- Single-Parent Household (One Child Under 15): Under $200. This family keeps spending intentionally modest, focusing on affordability and practicality.
The Bottom Line
Holiday spending in 2025 is defined by planning, boundaries, and realistic expectations. Families are adapting to economic pressures by making intentional choices, prioritizing needs, and recalibrating expectations. The data suggests that the era of excessive holiday spending is waning, replaced by a more grounded approach that reflects the realities of modern family finances. The most important takeaway is that there is no right or wrong way to spend on the holidays; the best approach is the one that works for your family, right now.
