Holiday budgets get tighter as inflation, tariffs shape Americans’ spending plans

Rising prices and global trade tensions are pushing Americans to take a hard look at their holiday budgets this year.

According to Thrivent’s newly released 2025 Holiday Spending Survey, the majority of consumers plan to scale back their seasonal spending in a shift that reflects continued anxiety about inflation and the broader economy.

The study found that 71% of respondents expect inflation to negatively affect their finances this holiday season, while two thirds believe tariffs will add to the cost of celebrations. Nearly half of those surveyed said they’re worried about how they’ll manage their money through the end of the year.

“We often think of the holidays as a time full of joyful moments - like gift giving, celebratory gatherings and family travel - and we know those things can also bring financial challenges and stress,” says advisor Sarah Hamlen. “While there’s still so much to celebrate and be thankful for, we expect the pressure of higher prices and less disposable income to change holiday traditions and spending for many people.”

About 64% of respondents said the rising cost of goods is their biggest financial worry, and nearly a third reported living paycheck to paycheck. Another 37% admitted feeling social or emotional pressure to spend beyond their means during the holidays.

Tariffs are also weighing on consumers’ expectations, with 60% citing them as a driver of higher prices, alongside 55% who pointed to the global economy.

The survey, conducted by Ipsos, highlights significant differences across demographics with women more likely than men to feel uneasy about holiday spending (54% vs. 46%), while parents expressed greater concern than non-parents (58% vs. 45%). Among mothers, 61% said they’re worried about their finances, and nearly eight in ten plan to cut back this year.

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Seven in ten Americans say they’ll reduce spending in at least one category. The most common cutbacks include dining out (44%), gifts (32%), and travel (28%). Among those paring back on presents, more than half plan to buy fewer gifts or switch to cheaper alternatives, while many scaling back on travel expect to stay home altogether.

Younger generations are showing more strain than older ones. Gen Z (39%), Millennials (44%), and Gen X (44%) all report higher levels of holiday-related financial stress compared with Baby Boomers (28%). Millennials were also most likely to say this year feels worse than last when it comes to spending pressure.