Holiday spending cuts deepen as inflation squeezes American budgets

Two-thirds of Americans are scaling back their holiday expenditure this year, with inflation continuing to reshape how households allocate discretionary dollars heading into the season, according to a new national survey from Thrivent, the Fortune 500 financial services company.

The 2026 Thrivent Holiday Spending Survey, conducted by Ipsos between September 29 and October 8, 2026, and based on a probability sample of 2,158 U.S. adults, found that 68 percent of respondents plan to cut back on at least one holiday expense.

That figure holds roughly steady compared with 2025, but the survey reveals important shifts in how people are cutting – and advisors should take note.

The data presents a timely opening for the kind of values-driven planning conversations that can strengthen client relationships during one of the most emotionally charged periods of the financial calendar.

Gift lists are getting shorter – and so are the guest lists

Among Americans who are reducing what they spend on gifts, the behavior has become more deliberate.

Two-thirds (66 percent) of that group say they will purchase fewer gifts outright, up from 56 percent in 2025, according to the Thrivent survey. Nearly half (46 percent) plan to buy for fewer people – up from 37 percent a year ago. About half (51 percent) plan to select less expensive items.

The pattern suggests that American consumers are no longer simply finding cheaper gifts – they are actively narrowing the circle of people they are buying for, a more meaningful behavioral shift that reflects genuine financial strain rather than thrift.

Dining out (44 percent), gifts for family and friends (32 percent), and travel (31 percent) top the list of areas where respondents plan to spend less. Travel is taking a particular hit: among those cutting back in that category, 60 percent say they do not plan to travel at all during the holidays, up from 56 percent in 2025. More than seven in ten Americans (71 percent) say gasoline prices are weighing on their household finances.

For advisors who work with clients on debt management and year-end financial planning, these numbers signal that many households are entering the holiday period already stretched.

Inflation is the dominant concern

Nearly four in ten Americans (38 percent) say they are more anxious about managing holiday finances than in prior years. Among that group, 75 percent attribute their concern to the rising cost of everyday items, and 72 percent of all respondents say inflation is having a negative effect on household finances as the season approaches. More than a third (35 percent) report having already reduced spending on essential items over the past six to twelve months.

"The holidays can bring pressure to show people we care through spending, but higher everyday costs are forcing many families to make difficult choices about what they can realistically afford," said Alexander Newby, a financial advisor at Thrivent, Minneapolis, Minnesota. "The goal isn't to spend your way to a meaningful holiday. Start with what you can afford, decide what matters most, and build a plan that takes both into account."

Advisors who have already been watching how younger clients respond to financial pressure this holiday season will recognize that this anxiety crosses generational lines. More than half of all Americans (52 percent) say the current economic environment will affect their approach to holiday spending at least a fair amount, the survey found.

What advisors can do before year-end

The practical opportunity for advisors is clear. The weeks between now and December are among the most effective touchpoints of the year for conversations about spending behavior, short-term debt, and how impulsive seasonal outlays can compound into larger planning problems. Advisors who raise the topic proactively tend to be better positioned heading into January reviews.

Newby outlines three practical steps he recommends to clients. The first is to establish a realistic spending limit grounded in current finances – not last year's budget or what feels socially expected. The second is to be deliberate about where that budget goes, whether that means fewer gifts, simpler exchanges, or shifting toward shared experiences. The third is to avoid bridging holiday spending with credit, which can erode retirement savings timelines and create significant Q1 cash flow stress.

Those conversations, according to Newby, are most effective when they are anchored in a client's own stated priorities rather than a generic caution against spending. Clients who navigate divorce settlements during the holiday season face a more acute version of the same challenge – the emotional weight of the season pulling against the financial plan.

The Ipsos survey carries a margin of sampling error of plus or minus 2.2 percentage points at the 95 percent confidence level.