CLEVELAND — The season of giving is arriving with added financial stress for many Americans. A new U.S. News & World Report survey shows 79% of respondents are worried they won’t have enough money for holiday gifts this year, an 11% jump from last season.
Consumer credit card analyst Adriana Ocañas, who broke down the findings in a newly, said the concern reflects a deeper trend in household budgets.
"This may come as no surprise since 71% of respondents say they feel they're living paycheck to paycheck,” Ocañas said. “This number has been steadily increasing for the past two years. In 2023, roughly 53% of Americans felt they were living paycheck to paycheck. In 2024, that number was 65%.”
The survey also highlights how Americans plan to navigate costs. Thirty-two percent say they will shop both Black Friday and Cyber Monday to stretch their budgets, while 63% plan to rely on one or two credit cards to cover holiday purchases.
Ocañas said rising everyday expenses are shaping how families approach the holidays.
"It’s groceries hands down. Fifty-six percent of Americans say their grocery prices are too high,” she said. “The closest runner-up to where they are feeling these prices was utilities. And that was 11%. So there’s this large gap on where they are feeling these prices the most.”
The ongoing government shutdown is adding another layer of strain. More than half of respondents, 56%, say it has negatively impacted their holiday plans. About 36% reported having to scale back their gift budgets, while 20% said they canceled or adjusted travel.
U.S. News reports that while many consumers are adapting with deal-hunting and tighter budgeting, financial pressures could shape how, and how much, Americans celebrate this holiday season.
Don’t Waste Your Money: Stretching your holiday budget
- Shop smart, not often: With nearly a third of Americans planning to hit both Black Friday and Cyber Monday, compare prices early. Many deals repeat, or even drop lower, later in the week.
- Set a credit card limit before you swipe: Sixty-three percent say they’ll rely on one or two credit cards this season. To avoid January bill shock, set a firm spending cap inside the card’s mobile app.
- Groceries are the big budget buster: With 56% of Americans saying food prices are their biggest pain point, trim your grocery bill by swapping brands, using store apps, and sticking to a holiday meal plan.
- Simplify the gift list: Use a “four-gift rule”: something they want, need, wear, and read. This can help you stay focused and avoid impulse buys.
- Don’t shop in a rush: Holiday panic shopping leads to overspending. Take five minutes to map out what you actually need before heading into the store.
