2025 Holiday Spending Report – NerdWallet

The holiday season is nearly upon us, and Americans are gearing up to spend. U.S. adults will spend a collective $242 billion on holiday gift shopping and nearly $311 billion on flights and hotels this holiday season, according to NerdWallet’s annual analysis of holiday spending.

A new NerdWallet survey finds that 82% of Americans plan to purchase gifts this holiday season. We will refer to them as “holiday shoppers” throughout this study. These holiday shoppers plan to spend $1,107, on average, for presents. That’s $182 more than last year’s average.

This increase could be attributed, at least in part, to tariff-related price hikes: Close to two-thirds of 2025 holiday shoppers (65%) are concerned about tariffs impacting their holiday gift shopping this year.

The survey of more than 2,000 U.S. adults, conducted online by The Harris Poll, also finds that 45% of Americans plan to spend money on flights or hotels this holiday season, spending $2,586, on average, for these expenses. We will refer to this group as “holiday travelers” throughout this report.

In the survey, we also asked holiday shoppers and travelers about any lingering debt they’re carrying from last year, how they’re saving money on gifts and trips, and how they think tariffs will impact their shopping this holiday season.

• Some Americans still have credit card debt from last holiday season. According to the survey, 31% of 2024 holiday shoppers who used credit cards still haven’t paid off the balances. The same is true for 31% of 2024 holiday travelers who used a credit card for their travel expenses.

• Using BNPL to buy gifts may hit credit scores this holiday season. About 1 in 5 2025 holiday shoppers (18%) will use buy now, pay later services to purchase presents. This could impact credit scores as FICO rolls out a new scoring model with BNPL data this fall.

• Tariffs are shaking up holiday shopping this year. Nearly three-quarters of 2025 holiday shoppers (74%) expect tariffs to impact their gift shopping. Close to 3 in 10 holiday shoppers (28%) say they’ll shop earlier than usual to avoid potential product shortages caused by tariffs.

• Holiday travelers are overwhelmingly taking steps to save on their trips. A majority of 2025 holiday travelers (91%) are taking action to save on their holiday travel-related expenses, like flying on a non-peak travel day (30%) or bunking with loved ones instead of getting a hotel (26%).

“The holidays are a notoriously expensive time of year,” says Sara Rathner, a NerdWallet credit card expert. “In this season of tariff concerns, shoppers and travelers are looking for ways to lower costs and, hopefully, limit holiday-related debt.”

Nearly three-quarters of 2025 holiday shoppers (74%) plan to use credit cards for at least part of their gift shopping this year. But some may still be struggling to pay off debt from last holiday season. According to the survey, of 2024 holiday shoppers who used credit cards, 31% still haven’t paid off the balances.

Some gift buyers may even be haunted by debt from several holidays past: 10% of 2025 holiday shoppers say they still have credit card debt from multiple holiday shopping years. Still, 15% of 2025 holiday shoppers say they’ll likely spend more on gifts this year than they can comfortably afford.

Savvy shopping strategy: Break the holiday debt cycle

Gift giving can be rewarding, but the debt that follows is anything but. It’s no wonder more than half of 2025 holiday shoppers (56%) say the costs associated with holiday spending stress them out. This year, consider giving yourself the gift of breaking the cycle of holiday debt.

Using credit cards to buy gifts isn’t inherently bad, but it’s important to pay off the balances in full with the first statement. This way, you can earn rewards and enjoy purchase protections you might otherwise miss out on, without accruing hefty interest charges.

Make a plan to pay off debt from the past and take the necessary steps to avoid debt this year. Aim to spend only what you can comfortably afford to pay off when the bill comes due, if you use a credit card this season.

“Holiday debt can get in the way of your ability to meet the money-related goals you may have for the new year,” Rathner says. “It’s nice to be able to buy gifts for your loved ones, but don’t forget to take care of yourself this time of year, too.”

Credit cards aren’t the only payment method that could put holiday shoppers in debt for their gift shopping this year. Nearly one-fifth of 2025 holiday shoppers (18%) say they’ll use buy now, pay later (BNPL) services to purchase presents. But using some of these services could have new ramifications: Starting this fall, FICO will begin incorporating BNPL data into its credit scoring model. It’s still unclear how this information will show up in credit reports and which BNPL companies will choose to participate.

BNPL is most popular this holiday season for younger Americans — 35% of Gen Z (ages 18-28) holiday shoppers say they’ll use BNPL for gift buying, compared to 25% of millennial (ages 29-44), 13% of Gen X (ages 45-60) and just 6% of baby boomer (ages 61-79) holiday shoppers.

Savvy shopping strategy: Be aware of potential credit impact when buying gifts with BNPL

In light of this and future credit scoring updates, it’s a good idea to avoid loan stacking, or getting several BNPL loans simultaneously. Also, set up automatic payments to avoid missing an installment if you use these services to buy gifts this year.

“BNPL can be a helpful tool when used carefully for big purchases, but it’s far too easy to take out multiple installment plans at once for purchases as small as food delivery,” Rathner says. “Be strategic if you’re going to use a BNPL plan.”

Widespread tariffs put into place by the Trump administration are ever changing, and currently being challenged in court. But tariff-related price increases, or at least the looming threat of them, are impacting how many holiday shoppers are approaching gift buying.

Nearly three-quarters of holiday shoppers (74%) expect tariffs to impact their holiday shopping.

Some holiday shoppers are opting to buy fewer gifts (24%) or buy for fewer recipients (20%) due to tariff-related price increases. And nearly 1 in 5 holiday shoppers (19%) say they don’t know how much to budget for gift giving due to tariff-related price increases.

Savvy shopping strategy: Let your budget inform your shopping list

While holiday shoppers can’t control what tariffs do to the cost and availability of gifts they’d like to purchase, they do have control over how much they decide to spend, and nearly 3 in 10 holiday shoppers (28%) say they have a strict budget for the amount they will spend on holiday gifts this year. Spend the amount that makes the most sense for you, given your total financial picture, even if it means cutting back on your gift list.

The holiday season can come with a lot of pressure, and it’s easy for something that’s supposed to be fun like gift giving to become a source of stress. It’s still a couple of months before the holiday season starts in earnest; now might be a good time to see if your loved ones are also feeling the festive fatigue and work together to change things up.

You might be surprised how open everyone is to cutting back. According to the survey, nearly two-thirds of Americans (63%) say they’d like their family’s holiday traditions to be less focused around gifts than they are. Still, just 1 in 5 holiday shoppers (20%) say they’ve discussed or plan to discuss limiting holiday gift spending this year with their friends and family members.

“As it turns out, a lot of people want to cut back on gifts for their family, but everyone’s afraid to admit it. Be brave and start the conversation! Your relatives likely secretly agree with you,” Rathner says. “Every year is a chance to rework traditions into something that’s fun for everyone, and not a financial burden. There are so many inexpensive ways to celebrate. My personal favorite is making a travel mug of hot cocoa at home and taking a family walk around the neighborhood to see Christmas lights.”

Whether you cut back on spending this year or not, there are plenty of ways Americans are saving on their holiday gift buying. Some holiday shoppers plan to take advantage of big sales days, like Cyber Monday (35%), Black Friday (34%) and Small Business Saturday (14%). And about a third of holiday shoppers (31%) say they plan their holiday purchases in advance so they can monitor them continuously for sales before purchasing.

“Giving yourself extra time to buy gifts for the holidays can help you save money,” Rathner says. “You’ll be able to shop sales and comparison shop for the best deals. Plus, you’ll avoid expensive impulse purchases.”

Savvy shopping strategy: Use old and new options to save on holiday shopping

Opting for thrifty gifts is one route: The survey finds that 10% of holiday shoppers plan to purchase some gifts secondhand this year and 7% plan to regift. These are great ways to save money and resources, but what if you can’t find previously loved gifts in good condition?

About 1 in 7 holiday shoppers (14%) say they’ll use AI tools to plan their holiday shopping this year. You can use a tool like ChatGPT to build a gift list and help budget for each item. And if your list is getting a little too spendy, you can prompt it to help find lower cost alternatives.

Like holiday shoppers, some holiday travelers still have credit card balances from last year. The survey found that nearly a third (31%) of 2024 holiday travelers who used a credit card for last year’s holiday travel expenses still haven’t paid it off. And around 1 in 6 (17%) 2025 holiday travelers say they still have credit card debt from multiple holiday travel years.

Thrifty travel tip: Pay off lingering debt and avoid credit card debt this year

For some, holiday trips are a priority: 37% of 2025 holiday travelers say traveling over the holiday season is more important to them than the giving and receiving of gifts. But going into credit card debt can put a damper on the experience. Aim to pay off past holiday travel expenses and do what you can to avoid them going forward.

While it can feel like the holiday season sneaks up on us, it occurs at the same time each year. You can save for both travel and gift costs a little each month so it doesn’t turn into a financial scramble once November rolls around.

For future holiday travel, consider cutting back on other expenses temporarily to free up cash for your travel plans. Maybe that means cutting out a few subscriptions or eating more meals at home for the next few months. You might also opt to take on a side hustle for extra holiday funds.

“If you’re still paying off last year’s holiday trip, that’s a red flag that you need to reset your travel expectations,” says Sally French, a NerdWallet travel expert and spokesperson. “I see too many holiday travelers who prioritize the perfect Instagram moment over their financial wellbeing. A weekend road trip with family can be just as meaningful as that expensive ski resort.

“The best vacation is one you can actually afford, and the best memories don’t require maxing out your credit cards.”

Nearly half of 2025 holiday travelers (48%) say they’ll keep their usual holiday travel plans this year, regardless of expense. But everyone could benefit from saving money on their trip costs.

According to the survey, almost all 2025 holiday travelers (91%) will take action to save money on their upcoming holiday travel-related expenses. Three in 10 (30%) say they’ll fly on a non-peak day and more than a quarter (26%) will stay with loved ones instead of getting a hotel room/vacation rental.

Thrifty travel tip: Use travel rewards and other resources to save cash

A quarter of holiday travelers (25%) say they’ll use points or miles to pay for at least some of their holiday travel in order to save money. While it can be tempting to hoard rewards for a major trip, points and miles can lose value over time, so it’s a good idea to use them as you need them.

AI tools can also be useful in saving money on upcoming travel. According to the survey, about 3 in 10 holiday travelers (29%) will use AI tools to help them plan holiday travel this year. And 16% of holiday travelers will use tools like Google Flights or Mindtrip specifically to help them find travel deals.

“Consider traveling a few days earlier or later than the masses, use those credit card points you’ve been hoarding and don’t be afraid to stay with relatives instead of booking an overpriced hotel,” French says. “The holidays are about spending time with people you care about, not how much you spend getting there.”

This survey was conducted online within the United States by The Harris Poll on behalf of NerdWallet from Sept. 2-4, 2025, among 2,083 U.S. adults ages 18 and older, among whom 1/710 plan to purchase gifts this holiday season (i.e., holiday shoppers) and 892 plan to spend money on flights/hotels for holiday travel this year (i.e., holiday travelers). The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +/- 2.5 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact [email protected].

We used U.S. Census population estimates and survey responses to calculate Americans’ total gift and travel spending this holiday season.