EXCLUSIVE: Inflation puts a damper on holiday shopping
Elevated prices are having an impact on consumers' holiday spending plans.
Survey results released exclusively to Chain Store Age by coupon and promotional code aggregation platform CouponFollow reveal that while the average U.S. consumer budget for holiday spending is just over $1,000 this year, nearly three-in-10 (29%) consumers expect to spend less on the holidays in 2025 than they did in 2024.
In addition, results of the survey of roughly 1,000 U.S. consumers indicate close to half (45%) of respondents say they feel pressure to spend or give more than they can comfortably afford during the holidays, and nearly two-in-five (39%) feel financially insecure about affording the holidays in 2025.
[READ MORE: Experian: AI, financial stress impact holiday shoppers]
However, 14% of respondents plan to spend over $2,000 on the holidays this year and 57% who plan to purchase gifts say they haven’t set a holiday spending budget. Of respondents who did set a budget, almost six-in-10 (58%) plan to spend $500 or less this season. Overall, respondents indicate the maximum they would spend on a single holiday gift is $250.
Total average holiday spending by generation
Ranked highest to lowest the average amounts respondents intend to spend on the 2025 holidays by generation are:
- Gen X: $1,295
- Millennials: $1,020
- Gen Z: $820
- Baby boomers: $630
Reasons for trimming holiday spending
Four-in-10 respondents say they're cutting back on gift buying in 2025 due to inflation. And more than one in 10 (12%) respondents say they have canceled or decided not to travel for the holidays this year due to inflation.
Other reasons respondents are reducing holiday spending include:
- Trying to be more intentional or spend meaningfully: 22%
- Paying off debt or prioritizing savings: 14%
- Reduced personal income or job insecurity: 11%
- Fewer people to buy for this year: 4%
In addition, nearly two-in-five (38%) respondents say they have participated in a "no-gift" holiday, focusing entirely on personal presence over giving and receiving presents.
In October 2025, CouponFollow surveyed 1,006 U.S. adults to understand how Americans are redefining holiday spending and celebration habits amid rising costs. The average age was 41; 50% of the participants were female, and 50% were male. Generationally, 5% were baby boomers, 30% were Gen X, 48% were millennials, and 17% were Gen Z.
