Culture, tradition, and society all tell us to spend big this time of year. (Credit: Davor Geber on Shutterstock)
Debt the halls: Holiday expenses leave little financial wiggle room for essentials this year.
In A Nutshell
- 19% of Americans are cutting grocery spending, 25% have stopped eating out, and 21% have stopped saving money just to afford holiday gifts.
- Nearly 1 in 3 people expect to go into debt (or deeper debt) this holiday season, with 35% already carrying debt from previous holidays.
- Americans spend over $250 on average buying gifts out of obligation rather than genuine desire, with parents and younger generations feeling the most pressure.
- 24% of people in relationships are concealing holiday expenses from their partners by using cash, lying about discounts, or shopping when their partner isn’t around.
For many Americans, the pressure to keep up holiday appearances now comes at the expense of basic needs. Nearly one in five people admitted to cutting back on grocery purchases to afford holiday expenses, while others have stopped eating at restaurants or have drained their savings accounts entirely.
A new survey of 2,000 Americans reveals the financial contortions people are performing to maintain holiday traditions. Twenty-five percent have eliminated restaurant meals from their budgets, 21% have stopped putting money into savings, and 19% have reduced their grocery spending, all to redirect funds toward holiday expenses. For some families, the choice between putting food on the table and presents under the tree has become uncomfortably real.
The survey was conducted by Talker Research on behalf of Beyond Finance between October 14 and October 24, 2025.
Beyond just cutting back on meals and savings, 31% of survey participants expect to slip into debt this holiday season or fall even deeper into existing debt. Another 35% admitted they’ve accumulated holiday debt in previous years, suggesting this is a recurring problem rather than a one-time struggle.
Holiday Spending Budgets Nobody Actually Follows
Only half of Americans (51%) have bothered creating a holiday budget this year. Of those who did set spending limits, 64% have already blown past them or expect to overspend before the season ends.
Credit cards have become the primary vehicle for holiday overspending, with 54% putting expenses on plastic. Another 21% are pulling from savings accounts, while 20% are using buy-now, pay-later plans that defer the financial reckoning to future months.
The scale of overspending adds up quickly. Americans are spending an average of over $250 on what the survey calls “guilt gifts,” presents bought out of obligation rather than genuine desire. More than half of respondents (52%) said they’ve already purchased or plan to purchase at least one gift for someone simply because they feel they have to, not because they actually want to give that person something.
Parents feel the squeeze more than non-parents. Seventy-six percent of parents with children under 18 admitted to guilt-giving, compared to 44% of people without kids. Grandparents also face more pressure than non-grandparents, with 59% versus 45% engaging in obligatory gift purchases.
Why Americans Feel Compelled to Overspend
Two-thirds of Americans (66%) believe there’s an unhealthy pressure to buy holiday presents in American culture. When asked about the sources of that pressure, respondents pointed to several factors. Twenty-nine percent cited their family’s strong traditions and expectations for holiday gifts as the primary driver. Twenty-six percent blamed reciprocity pressure, the sense of obligation to give a gift when receiving one. Another 25% pointed to marketing and consumer culture, including gift hauls, gift guides, and wish list trends that promote the idea that buying gifts equals caring about others.
Younger Americans feel disproportionately burdened. Sixty-four percent of Gen Z and 66% of millennials said they feel obligated to give gifts, compared to 50% of Gen X and just 38% of baby boomers. People in relationships also feel more pressure than singles, with 58% of partnered people admitting to guilt-giving compared to 47% of single people.
The gifts Americans feel most obligated to buy are for their kids (44%), partners (37%), and friends (32%).
Financial Deception Between Partners
Financial strain has led to relationship deception for some couples. Twenty-four percent of people in relationships admitted they’ve already hidden, or plan to hide, a holiday expense from their partner this year.
The most common tactics include waiting until the partner isn’t around to buy or receive the item (33%), lying about how much of a discount or sale price was applied (33%), and using cash to avoid leaving a digital trail (32%).
Dr. Erika Rasure, chief financial wellness advisor at Beyond Finance, explained the deeper emotional dynamics at play. “The financial anxiety we’re seeing isn’t just about economic uncertainty; it’s about complex and deeply-rooted emotions,” Rasure said. “People feel torn between wanting to create joy and the guilt of knowing they can’t afford it. When cultural norms, family traditions and social media all amplify that pressure, overspending becomes emotional, not rational.”
Social Media Drives Regrettable Purchases
Social media has added another layer of pressure to holiday spending. Nearly one in five people (19%) confessed to having bought a holiday gift, trip, or experience for a loved one specifically because they wanted to post about it on social media. Gen Z leads this trend at 36%, followed by millennials at 33%, while older generations are far less likely to make purchases for online clout.
Twenty-two percent revealed they’ve purchased a holiday gift based on trends or recommendations seen on social media, only to regret it later because the gift was trendy but ultimately meaningless or of poor value to the recipient.
Perhaps the most telling finding is that 65% of Americans say it’s nearly impossible to know how much they can safely spend this holiday season. Without clear guidelines or realistic assessments of their financial situations, many people are making spending decisions based on emotions, social expectations, and marketing pressure rather than actual affordability.
Lou Antonelli, chief operating officer at Beyond Finance, offered perspective on the broader pattern. “People don’t set out to overspend during the holidays. They want to connect, to make others happy, to participate,” Antonelli said. “But that generosity often turns into guilt and regret.”
For millions of Americans, the true cost of holiday celebrations extends far beyond the price tags on wrapped presents. The real expense comes in the form of depleted savings accounts, mounting credit card debt, reduced grocery budgets, and the stress of maintaining appearances while struggling to make ends meet.
Research Methodology
The survey was conducted by Talker Research on behalf of Beyond Finance. Researchers surveyed 2,000 Americans who celebrate winter holidays in 2025 and have internet access. The survey was administered and conducted online between October 14 and October 24, 2025.
The survey did not specify limitations regarding demographic representation or potential sampling biases. No funding sources or conflicts of interest were disclosed in the press release materials. For complete methodology details, readers can visit the Talker Research Process and Methodology page as part of AAPOR’s Transparency Initiative.
