Americans are rethinking holiday traditions, not to cut back on joy, but to bring more meaning to it. Instead of overspending on piles of presents, many are shifting toward thoughtful, experience-driven, and financially mindful ways to celebrate. A new survey from CouponFollow highlights this growing trend toward intentional holiday giving, revealing how consumers are navigating rising costs while still making the season feel special.
Key Takeaways
- The average American budget for holiday spending is just over $1,000 this year.
- Nearly 1 in 3 Americans (29%) expect to spend less on the holidays in 2025 than they did in 2024.
- 2 in 5 Americans (40%) say they're cutting back on gift buying in 2025 due to inflation.
- Over 1 in 10 Americans (12%) say they've canceled or decided not to travel for the holidays this year due to inflation.
- 45% of Americans feel pressure to spend or give more than they can comfortably afford during the holidays.
- Nearly 2 in 5 Americans (39%) feel financially insecure about affording the holidays in 2025.
Spending Less Without Sacrificing Meaning
As holiday spending climbs and financial pressures mount, many Americans are redefining what a "happy holiday" truly means. Instead of focusing on the number of gifts under the tree, people are prioritizing connection, gratitude, and experiences that bring lasting joy without stretching their wallets.
This shift isn’t just about tightening budgets; it reflects a deeper cultural move toward intentionality. Americans are increasingly prioritizing emotional value and shared experiences over material quantity. As economic uncertainty persists, holiday traditions are evolving: gifting is becoming more personal, gatherings more intimate, and celebrations more centered on connection than consumption.
- Across generations, many Americans plan to focus on meaning and togetherness this holiday season. Millennials (58%) lead this trend, followed by Gen X (54%), Gen Z (52%), and baby boomers (47%).
- Baby boomers (28%) are the most likely to celebrate holidays without buying gifts, compared to 21% of Gen X, 20% of millennials, and 19% of Gen Z.
Inflation Impacts on the Holiday Season
- 2 in 5 Americans (40%) say they're cutting back on gift buying in 2025 due to inflation.
- Over 1 in 10 Americans (12%) say they've canceled trips or decided not to travel for the holidays this year due to inflation.
2025 Holiday Spending Budgets
- The average American budget for holiday spending is just over $1,000 this year.
- 14% of Americans plan to spend over $2,000 on holiday celebrations.
- Americans say the maximum they would spend on a single gift is $250.
- 58% of Americans who set a holiday budget plan to spend $500 or less this season.
- 57% of Americans who plan to buy gifts this year say they haven't created a holiday spending budget.
- Nearly 1 in 3 Americans (29%) expect to spend less on the holidays in 2025 than they did in 2024.
Main Reasons Americans Are Cutting Back on Holiday Spending
- Inflation or higher cost of living: 40%
- Trying to be more intentional or spend meaningfully: 22%
- Paying off debt or prioritizing savings: 14%
- Reduced personal income or job insecurity: 11%
- Fewer people to buy for this year: 4%
Average Holiday Spending by Generation
| Generation | Gifts for Others | Travel or Transportation | Hosting or Meals | Decorations or Ambiance | Experiences or Entertainment | Total Spending |
| Baby Boomers | $415 | $55 | $85 | $30 | $45 | $630 |
| Gen X | $730 | $215 | $165 | $80 | $105 | $1,295 |
| Millennials | $430 | $215 | $160 | $80 | $135 | $1,020 |
| Gen Z | $320 | $210 | $130 | $60 | $100 | $820 |
Emotional Spending, Gift Goals, and Holiday Burnout
Even with tighter budgets, Americans still feel emotional pressure to deliver a "perfect" holiday. From finding the right gifts to making every moment memorable, this emotional weight often drives overspending and stress.
Top Motivations When Buying Gifts This Year
- Showing appreciation or love: 61%
- Staying within a budget: 38%
- Finding good holiday deals or discounts: 28%
- Finding unique, handmade, or sustainable items: 20%
- Giving experiences instead of physical things: 14%
- Checking everything off the list quickly: 9%
- Supporting small or local businesses: 7%
Holiday Pressures
- 45% of Americans feel pressure to spend or give more than they can comfortably afford during the holidays.
- Younger generations feel the most pressure to overspend during the holidays, with 50% of millennials and 46% of Gen Z experiencing this, compared to 40% of Gen X and just 16% of baby boomers.
- Nearly 1 in 5 Americans (20%) say they feel more stressed or overwhelmed about the holidays this year compared to past years.
- Younger generations report the most holiday stress, with 23% of Gen Z and 22% of millennials feeling more overwhelmed this year, compared to 15% of Gen X and only 8% of baby boomers.
- Nearly 2 in 3 Americans (63%) say they've felt emotionally burned out by the pressure to make the holidays perfect.
- Millennials (65%) and Gen X (65%) are the most likely to feel burnt out by the pressure to make the holidays perfect, followed by baby boomers (58%) and Gen Z (51%).
Financial Insecurities
- Nearly 2 in 5 Americans (39%) feel financially insecure about affording the holidays in 2025.
- Gen X feels the most financially insecure about affording the holidays this year (43%), followed by millennials (39%), Gen Z (34%), and baby boomers (33%).
Meaningful Alternatives to Gift Giving
- Nearly 2 in 5 Americans (38%) have participated in a "no-gift" holiday, focusing entirely on presence over presents.
- Millennials (42%) are the most likely generation to have celebrated a "no-gift" holiday, followed by baby boomers (40%), Gen X (35%), and Gen Z (33%).
- Nearly 3 in 4 Americans (71%) say they'd consider skipping gift-giving altogether to fund a shared trip or experience instead.
- Younger generations are most open to skipping gift-giving in favor of shared experiences, including 75% of Gen Z and 70% of millennials, compared to 71% of Gen X and 68% of baby boomers.
Gifting Smarter This Holiday Season
The holidays don't have to be expensive to be meaningful. As this year's data shows, more Americans are prioritizing thoughtful spending and quality time over extravagant gifting. Whether it's setting a clear budget, swapping physical gifts for shared experiences, or finding creative ways to give within your means, small changes can make a big difference.
For budget-conscious shoppers, smart, intentional savings tools like CouponFollow can help stretch your budget even further, so you can focus on what really matters: celebrating with the people you love.
Methodology
In October 2025, we surveyed 1,006 U.S. adults to understand how Americans are redefining holiday spending and celebration habits amid rising costs. The average age was 41; 50% of the participants were female, and 50% were male. Generationally, 5% were baby boomers, 30% were Gen X, 48% were millennials, and 17% were Gen Z.
About CouponFollow
CouponFollow makes it easy to stretch your holiday budget. Find verified discount codes and exclusive deals to save on gifts, decorations, and everything you need to celebrate the season for less. Whether you're gifting loved ones or treating yourself, browse our site to discover instant savings at your favorite stores this season.
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