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As the 2025 holiday season approaches, Americans are opening their wallets wider despite economic uncertainty and tariff-related price pressures. New data from The Harris Poll for NerdWallet finds that U.S. adults plan to spend a collective $242 billion on holiday gifts, averaging $1,107 per person: an increase of $182 from last year.
While many are eager to celebrate, that optimism comes with financial strain. Nearly two-thirds of holiday shoppers (65%) worry tariffs will raise prices, and 74% say they expect those costs to impact their gift buying this year.
Shoppers Are Spending More, but Still Carrying Debt
Credit cards remain the payment method of choice for nearly three-quarters of holiday shoppers, yet many are still catching up from last year. Thirty-one percent of 2024 shoppers who used credit cards say they still have not paid off those balances, and 10% admit they are carrying debt from multiple holiday seasons.
Younger shoppers are also turning to alternative financing. Nearly one in five (18%) plan to use buy now, pay later services this year, with 35% of Gen Z shoppers most likely to rely on these installment options. As new credit scoring models begin to include BNPL data, the holiday season could bring longer-term financial effects for some households.
Tariffs Are Changing How Americans Shop
Widespread tariffs and price uncertainty are shaping new holiday habits. Nearly three in ten shoppers say they plan to buy earlier to avoid potential product shortages, while others plan to buy fewer gifts or limit their recipient lists.
These trends suggest a more cautious approach to spending. Even as gift budgets rise, nearly one in five (19%) shoppers say they are unsure how much to budget because of tariff-related costs. For many, the goal is to preserve holiday joy without overspending, which is a balancing act that reflects the broader affordability challenges facing U.S. consumers.
Rethinking Holiday Traditions
Beyond the dollars, Americans are rethinking what generosity looks like. Nearly two-thirds (63%) say they wish their family traditions were less focused on gifts, but only one in five have discussed cutting back. The data points to an evolving mindset: one where emotional connection is beginning to outweigh material exchange.
As Sara Rathner, NerdWallet credit card expert, notes, “The holidays are a notoriously expensive time of year. In this season of tariff concerns, shoppers are looking for ways to lower costs and limit debt.”
The takeaway is clear: holiday cheer endures, but it comes with greater financial awareness.
About the research
This survey was conducted online within the United States by The Harris Poll on behalf of NerdWallet from September 2–4, 2025, among 2,083 U.S. adults ages 18 and older, including 1,710 who plan to purchase gifts this holiday season. The sample data is accurate to within ±2.5 percentage points at the 95% confidence level.
Explore the full 2025 NerdWallet Holiday Spending Report here.
