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U.S.

Americans Cut Essentials to Fund Holiday Gifts

Surveys show most Americans plan to trim everyday spending and rely more on credit to pay for the 2026 holiday season.

Updated on Nov. 7, 2026 in Spending

Gouache-painted editorial illustration of a plain wrapped gift on a wooden tray beside uneven stacks of coins, in warm ochre, dusty rose, and sage.
Americans plan to cut back on dining out, gifts and travel this holiday season as elevated grocery, housing and utility prices squeeze budgets, with many turning to credit to bridge the gap. AI Illustration. Upload story photo >

Live Poll

Are you planning to cut back on necessities to afford holiday gifts this year?

A US News survey of 2,158 Americans found 65 percent plan to reduce spending on necessities to afford holiday shopping. An Ipsos survey for Thrivent found 68 percent plan to cut back in at least one area this season.

Why it matters

Americans continue to face elevated prices on groceries, housing, utilities and other household expenses, leaving less room in budgets for holiday purchases. Many shoppers are turning to credit and buy now, pay later services to bridge the gap.

Seventy-four percent of holiday spenders plan to use credit cards, and 38 percent of buy now, pay later users said they did not expect to pay in full and on time. Planned gift spending averages $879 per NerdWallet, down from $1,107 last year.

The players

US News

US News is a major American news and information publisher known for its consumer rankings and personal finance coverage.

Thrivent

Thrivent is a Minneapolis-based financial services organization that offers insurance, investment and banking products to members.

NerdWallet

NerdWallet is a personal finance website that publishes consumer research, reviews and spending reports for American households.

Gallup

Gallup is a global analytics and polling firm known for long-running surveys of American public opinion and economic attitudes.

The details

Dining out is the top target for spending cuts, with 44 percent planning to spend less on restaurant meals, while 32 percent plan to cut gift budgets and 31 percent plan to reduce holiday travel. Two-thirds of those cutting gift spending plan to buy fewer presents overall, and 46 percent plan to buy for fewer people than last year.

Timeline

  1. September 29 to October 8, 2026: US News surveyed 2,158 Americans.

  2. 2026 holiday season: Households plan reduced spending and increased credit use.

  3. New year: Households may face debt repayment after holiday borrowing.

Holiday Spending Trend

NerdWallet's report shows average planned gift spending falling 21 percent from $1,107 in 2025 to $879 this year. The decline suggests consumers are reducing the number of recipients rather than only seeking cheaper gifts.

Households planning holiday budgets may need to weigh credit card and buy now, pay later balances against essential expenses. Those who carry balances into the new year could face higher repayment costs.

The takeaway

Setting a holiday spending limit before shopping begins can help households avoid carrying holiday debt into the new year. Reviewing which recipients are essential can also reduce pressure on everyday budgets.

Further reading

For more on household budgeting pressures, see Spending coverage.

Live Poll

Are you planning to cut back on necessities to afford holiday gifts this year?