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Santa’s sleigh It’s looking a little lighter this year as a large number of Americans plan to cut back on holiday spending and, in some cases, don’t go shopping at all. Gift at all.
According to one, roughly two in five American consumers (42 percent) say they intend to spend less this holiday season than in 2024. 2025 Economic Impact Survey Commissioned by Nationwide Insurance Company.
on a large scale economic uncertainty See Americans cutting back on holiday gifts, according to separate survey from financial services company rich.
also with reduce inflationhigh cost of essential things like groceryUtilities, and rent are forcing many people to deplete savings instead of prioritizing bills and spending on gifts.
Furthermore, the Trump administration’s tariffs act like a regressive tax, especially Low income families. They spend a large part of their earnings on commodities, many of which are imported, placing a heavy burden on them. Senate Committee on Small Business and Entrepreneurship,
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Nearly every dollar earned by U.S. toy producers as a result of the tariffs ultimately comes from consumers, hitting low-income families the hardest. National Retail Federation, The world’s largest retail trade association. The same data shows that toy prices could rise between 36 and 56 percent under some tariff scenarios.
The tariffs could cost consumers $28.6 billion this holiday season, or about $132 per shopper, LendingTreeAn online comparison market estimate. Electronics will be impacted the most, at $186 per shopper, followed by clothing/accessories ($82), while food and candy will be impacted the least ($12).
Consumer confidence has also fallen. Even financially secure people appear concerned about job stability, rising interest rates and a potentially weakening economy conference boardA non-profit business organization.
Among those who intend to cut back, nearly half (49 percent) expect to buy fewer gifts; 38 percent would choose less expensive gifts; And according to Nationwide, 20 percent say they won’t buy any gifts.
The survey also found that belt-tightening extends beyond the holiday budget. Whereas, about 47 percent of those asked are making less impulse purchases this year 41 percent are making less luxury purchases, and 32 percent say they are buying more used or secondhand goods rather than new.
A separate survey last month also found that financial concerns are impacting holiday spending, with 26 percent of Americans spending less on gifts than last year. However, according to a survey conducted by the mortgage lender, 18 percent are spending more Rocket Mortgage and Real Estate Company Redfin,
The National Retail Federation forecasts a slight decline in holiday spending compared to last year’s record-setting figures. Americans will spend about $890 per person on gifts, food and decorations this holiday season, down from $902 per person last year. The federation said about 70 percent of this holiday spending will be allocated to gifts.
Apart from the festive period, Americans appeared pessimistic about their prospects in the new year. Although 55 percent of respondents to the nationwide survey say they feel secure in their personal finances, many remain cautious about the near future.
Nearly a third of Americans (35 percent) think the U.S. economy will get worse in 2026. Of those worried about a recession, 78 percent point to the risk of higher inflation, and 71 percent say global trade tensions and tariffs are major concerns.
Consumer caution is also reflected in major life decisions. Nearly half (48 percent) of those surveyed have delayed or canceled a vacation; 46 percent stopped buying cars; 21 percent postponed childbearing; Last year, 19 percent people delayed marriage and 17 percent postponed retirement.
Meanwhile, one in five Americans say they are in more debt than a year ago, with use of borrowing from credit cards, personal loans and retirement plans increasing.
“Even though many Americans say they feel economically stable today, the way they are behaving tells a different story,” said Kathy Bostjancic, chief economist at Nationwide, noting that while wages have improved, job growth is weak and inflation pressures remain.
Despite surface levels of confidence about personal finances, the survey revealed that many consumers are preparing for a tough road ahead in 2026.
About 43 percent of Americans anticipate challenges with health care costs in the next year; with 39 percent paying off debt; 34 percent with retirement savings; and 31 percent with protecting investments from market volatility.