As the 2025 holiday season approaches, Americans are once again grappling with the perennial challenge of balancing generosity and financial responsibility. Despite a slowing economy, rising layoffs, and the persistent bite of inflation, travel remains a non-negotiable for many households—even as other holiday expenses are being trimmed. According to the 2025 Holiday Outlook survey by PwC, a striking 44% of Americans plan to travel for holidays like Thanksgiving, Christmas, and Hanukkah. Among younger generations, that number climbs to 55%, underscoring a youthful determination to hit the road, pandemic fatigue or not.
Yet beneath the surface of bustling airports and packed highways, a more complicated financial picture is unfolding. A recent survey conducted by Talker Research for Beyond Finance found that 65% of Americans say it’s nearly impossible to know how much they can “safely” spend this holiday season. The survey, which polled 2,000 Americans celebrating winter holidays, paints a portrait of mounting financial strain, emotional pressure, and the sometimes uneasy intersection of tradition, expectation, and economic reality.
While overall holiday-related spending per person is expected to dip to $1,552—a notable decrease driven by an 11% drop in gift spending—travel budgets are actually up by 1%. It’s a paradox that speaks volumes about what people value most, especially after years of COVID-19 restrictions. But that desire for togetherness comes at a cost. According to a Consolidated Credit survey, 36% of people are still struggling with holiday-related debt from last year, and 31% expect to slip into debt again this season or sink deeper into existing obligations.
“The financial anxiety we’re seeing isn’t just about economic uncertainty; it’s about complex and deeply-rooted emotions,” said Dr. Erika Rasure, chief financial wellness advisor at Beyond Finance, as reported by Talker Research. “People feel torn between wanting to create joy and the guilt of knowing they can’t afford it. When cultural norms, family traditions and social media all amplify that pressure, overspending becomes emotional, not rational.”
Indeed, only half of Americans (51%) have created a holiday budget, and of those, nearly two-thirds (64%) have already blown past their limits or expect to do so. The ways people are funding these extra expenses are varied: 64% are overspending with cash or debit cards, 54% are turning to credit cards, 21% are dipping into savings, and 20% are using buy-now, pay-later plans. The average interest rate on credit cards now hovers around 20%, making holiday debt especially punishing. As Current, a consumer fintech banking platform, cautions, the worst strategy is to put everything on credit and let the bill spiral out of control, potentially harming your credit record if you can’t keep up.
But it’s not just the numbers that are weighing on Americans. The emotional and social pressures to give—and to give lavishly—are as strong as ever. This year, 52% of respondents confessed to buying at least one gift out of obligation rather than genuine desire, spending on average over $250 on so-called ‘guilt gifts’. Young Americans feel this pressure most acutely: 64% of Gen Z and 66% of Millennials say they feel burdened to give, compared to 50% of Gen X and 38% of Baby Boomers. Parents and grandparents are also feeling the squeeze, with 76% of parents of children under 18 and 59% of grandparents admitting to ‘guilt-giving’—far higher than non-parents and non-grandparents.
People feel the strongest obligation to buy gifts for their kids (44%), partners (37%), and friends (32%), according to the Beyond Finance survey. While the act of giving still brings joy (59%), excitement (50%), and generosity (38%), it’s also laced with stress for 24% of respondents. Two-thirds (66%) believe there’s an unhealthy pressure to buy holiday presents in American culture, driven by family traditions (29%), the expectation of reciprocity (26%), and the relentless influence of marketing and social media (25%).
Social media’s role in shaping holiday spending habits can’t be ignored. Nearly one in five Americans (19%) admit to having bought a gift, trip, or experience for a loved one just for the sake of posting about it online, with Gen Z (36%) and Millennials (33%) leading the way. Another 24% have purchased trendy gifts seen on social media, only to regret their choices later. For some, the desire to keep up appearances or participate in ‘wish list culture’ can be just as potent as family expectations.
All this pressure can have a ripple effect on relationships. A quarter of those in relationships (24%) said they’ve already hidden, or anticipate hiding, a holiday expense from their partner this year. The most common tactics? Buying gifts when their partner isn’t around (33%), exaggerating discounts (33%), or using cash to avoid a digital trail (32%).
Given these realities, financial experts are urging Americans to take a more strategic approach. Booking travel early is key, especially with so many holidays packed into a short window. The travel platform Skiplagged advises that the “sweet spot” for Christmas bookings is two weeks in advance, with the cheapest days to fly being Monday, November 24, and Wednesday, December 24. The priciest travel days are the Saturdays before Thanksgiving and Christmas.
Maximizing credit card rewards and benefits can also help offset costs. “With a little planning, your credit card can be a money-saving tool rather than a debt trap,” says Mike Casey, president of AE Advisors, as quoted by Stacker. He recommends reviewing which cards offer the best travel rewards or cash back, and using those strategically for flights, hotels, or gas. Many cards also offer valuable perks like trip cancellation insurance or rental car coverage. But beware of hidden fees: “When traveling abroad, make sure the card you use doesn’t charge foreign transaction fees,” advises Tanner Merritt, a financial planner at Life Planning Partners. “Those fees get added every time you swipe and can add up fast, especially on big purchases like hotel stays. It’s always worth double-checking before your trip.”
Saving in advance, choosing accounts with high interest rates, and starting to plan for next year’s holidays as soon as possible are all smart moves. And if you’re feeling the pressure to overspend, financial wellness advocates like Lou Antonelli of Beyond Finance suggest focusing on meaning over money: “People don’t set out to overspend during the holidays. They want to connect, to make others happy, to participate. But that generosity often turns into guilt and regret. We believe financial and emotional wellness can go hand in hand, and empower consumers to make choices rooted in peace, not pressure, so the holidays can be about meaning—not money.”
As Americans navigate the complex landscape of holiday spending, the challenge is clear: finding joy and connection without letting the season’s expenses cast a shadow well into the new year.