Bankrate’s 2025 Holiday Spending Report

Loren Jerae, a 26-year-old stay-at-home mom in Charlotte, North Carolina, has already begun Christmas shopping. She’ll frequent thrift stores, online marketplaces and clearance racks for the next few months until she’s curated the perfect pile of presents for her 5-year-old son.

As a young mom, “I didn’t want our finances to determine his holiday,” she says. “Ever since he was born, I have always been budget-friendly.”

When it comes to holiday shopping, Jerae is in good company.

About half of holiday shoppers (49 percent) have already begun or plan to begin shopping before Oct. 31, according to Bankrate’s 2025 Early Holiday Shopping Survey. Jerae starts even sooner.

She says she sets money aside during the first half of the year. Come July, she takes advantage of summer clearance sales and back-to-school deals to snag some early Christmas gifts. By August, she’s tackling her entire shopping list for her son, fiancé, parents and other friends and family.

Two in 5 shoppers (41 percent) are concerned that holiday gifts will be more expensive this year, which may be why they’re getting a head start. “I absolutely feel like [prices are] higher,” Jerae comments.

A few years ago, she and her fiancé tried shopping the month before Christmas and ended up spending around $700 on “a bunch of junk.” She told herself she’d never do that again.

“I am not spending that type of money on one or two items,” she says. By shopping early, “I can make $100 stretch, and we can get several things.”

Bankrate’s key findings on holiday spending

Around 2 in 5 holiday shoppers, especially boomers, fear high price tags this holiday season

Most U.S. adults (79 percent) plan to holiday shop this year. 

And around 2 in 5 holiday shoppers (41 percent) say they’re concerned holiday gifts will be more expensive this year. However, only around 1 in 4 (27 percent) say they expect to spend more this year than last.

Notably, that concern over high prices is highest among boomers (46 percent, ages 61-79) and decreases with age. Forty percent of Gen Xers (ages 45-60), 39 percent of millennials (ages 29-44) and 37 percent of Gen Zers (ages 18-28) noted the same concern.

Concern about high holiday prices this year is also more prominent among middle-income households. Forty-nine percent of $80,000-$99,999 earners and 45 percent of $50,000-$79,999 earners say they’re concerned, versus 38 percent of both the highest and lowest earners ($100,000+ and under $50,000, respectively).

Ted Rossman, Bankrate senior industry analyst, says the higher earners are easier to explain, as more disposable income allows for some wiggle room in the budget. But lower earners may have already tightened their holiday budgets after high inflation and interest rates in the last few years. It could still be a tough financial season — but they’ve adapted.

On the other hand, Rossman explains, middle earners may be newly disenchanted by higher prices and feel like their paychecks aren’t stretching as far as they used to.

• Money woes are top of mind for some holiday shoppers
  

  More than 1 in 3 shoppers say inflation will change how they shop (36 percent), and more than 1 in 4 say holiday shopping will strain their budgets (29 percent) and are stressed about winter holiday shopping costs (27 percent).

  In fact, only 11 percent explicitly said they’re not concerned about the cost of winter holiday shopping.

• More holiday shoppers will make their purchases online
  

  Nearly 2 in 5 shoppers (38 percent) intend to make most of their purchases online, versus 1 in 5 (20 percent) who plan to make most of their purchases in person. Perhaps surprisingly, boomers are the most likely to make most of their purchases online (45 percent), compared to just 33 percent of Gen Zers.

  Jerae, a Gen Zer, tends to shop more in person. “I’d rather just hit all the thrift stores in my area,” she explains.

  And roughly 1 in 6 shoppers (16 percent) expect that gifts will be harder to find this year.

Around 1 in 4 shoppers expect to spend more this holiday season

Twenty-seven percent of holiday shoppers expect to spend more this holiday season than they did last year, compared to 30 percent who expect to spend less. Forty-three percent expect to spend about the same.

There could be a couple of factors at play.

First, those who plan to spend more may anticipate higher prices this year, Rossman explains. Or, they could simply be earning more income and feeling generous.

Meanwhile, Rossman says those who plan to spend less might be more optimistic about prices this year. Or, they might be shortening their gift lists to save money.

Notably, younger generations are more likely to anticipate spending more this season — 41 percent of Gen Zers and 33 percent of millennials expect to spend more compared to 17 percent of Gen Xers and 20 percent of boomers.

More than 1 in 4 shoppers plan to take on debt this season, but debit cards are the top pick for payment

Sixty-one percent of holiday shoppers expect to use debit cards for at least some of their purchases, avoiding debt but likely sacrificing rewards potential.

Credit cards are the next most popular option, with 57 percent of shoppers planning to use them. Among those users, 35 percent plan to pay in full and 21 percent plan to carry balances over time.

Cash remains a popular option, with 49 percent planning to pay with cash. Buy now, pay later (BNPL) services (12 percent), checks (5 percent) and some other method (3 percent) round out the ways people plan to pay for their winter holiday shopping.

Gen Zers are the most likely to use debit cards (70 percent) and cash (55 percent). Boomers are the most likely to pay with credit cards (62 percent), and millennials are the most likely to use a BNPL service (17 percent).

After adjusting for overlap, more than 1 in 4 shoppers (28 percent) may take on debt either with a credit card they will pay off over time or BNPL. But just 4 percent say they are “willing to take on debt” in another survey question — revealing a possible disconnect between what Americans say and what they do.

Nearly half of shoppers will start before Halloween

You’re not behind on holiday shopping yet, but nearly half of shoppers (49 percent) will have started or plan to start before the end of October.

That includes 13 percent who started or planned to start by the end of August, another 11 percent in September and another 25 percent in October, leaving 37 percent who plan to start shopping in November and 14 percent in December.

Rossman thinks the early bird might get the worm.

“While some consumers shake their heads that holiday shopping seems to start earlier each year, the early start gives you more time to spread out your cash flow and find the best deals,” he explains.

You don’t have to wait until Black Friday anymore. Nowadays, those kinds of deep discounts typically start to appear in early October.

— Ted Rossman
Bankrate Senior Industry Analyst

Half of Americans made an impulse purchase during the 2023 holiday season

Fifty-four percent of Americans said in Bankrate’s 2024 Holiday Impulse Purchases Survey they’d made an unplanned or impulse purchase during the 2023 holiday season. That includes nearly 1 in 3 Americans (31 percent) who made one for family members, 15 percent for friends and 5 percent each for acquaintances and someone else.

And more than 1 in 4 (28 percent) made an unplanned/impulse purchase for themselves.

Source: Bankrate Impulse Shopping Survey, Sept. 30, 2024-Oct. 2, 2024
Note: Respondents could select more than one response.

• Gen Zers are the biggest impulse shoppers
  

  Generally, younger Americans were more likely than older Americans to have made an unplanned/impulse purchase during the 2023 holiday season:

  • Gen Zers: 70 percent
  • Millennials: 65 percent
  • Gen Xers: 50 percent
  • Baby boomers: 41 percent

  Younger Americans were also more likely than older generations to have made an unplanned/impulse purchase specifically for themselves:

  • Gen Zers: 44 percent
  • Millennials: 39 percent
  • Gen Xers: 24 percent
  • Baby boomers: 12 percent

• Parents of young kids and higher earners are more likely to impulse shop
  

  As for parental status, more than two-thirds (69 percent) of parents of children under the age of 18 made an unplanned/impulse purchase in the 2023 holiday season — compared to 48 percent of parents of adult children and 54 percent of non-parents.

  Additionally, people who report a household income of $50,000 or more were more likely to have made an unplanned/impulse purchase last holiday season, compared to those below that income threshold:

  • Less than $50,000 per year: 49 percent
  • $50,000-$79,999: 61 percent
  • $80,000-$99,999: 65 percent
  • $100,000 per year or more: 62 percent

Impulse shoppers often buy something just because it’s a good deal

A large portion of Americans were chasing deals in the 2023 holiday season. More than 2 in 5 impulse shoppers (44 percent) did so because they thought it was a good deal or because it was on sale.

Others thought it made a good gift for someone else (38 percent), wanted to treat themselves (29 percent) or the purchase was something they had previously considered buying (27 percent).

Source: Bankrate Impulse Shopping Survey, Sept. 30, 2024-Oct. 2, 2024
Notes: Respondents could select more than one response. Responses are of U.S. adults who made at least one unplanned/impulse purchase last holiday season.

• Social media influences many younger Americans’ holiday shopping
  

  More than 1 in 5 impulse shoppers (22 percent) were influenced by social media in some way:

  • Influenced by posts from brands/advertisers: 13 percent
  • Influenced by posts from influencers: 10 percent
  • Influenced by posts from friends/family/acquaintances: 10 percent

  A slim percentage (7 percent) were influenced to make an unplanned/impulse purchase from other advertising, such as TV, radio, online ads or billboards.

  Perhaps unsurprisingly, Gen Zers are the likeliest generation (36 percent) to say they were inspired by social media to make an unplanned/impulse purchase, followed by millennials (31 percent), Gen Xers (14 percent) and baby boomers (6 percent).

4 ways to save money this holiday season

You don’t have to go into debt to pay for the holidays. Instead, try these tips to be a smart shopper this season.

1. Set aside money ahead of time. Half of Americans are in credit card debt, and the holidays make it easy to spend more money than you have. Instead, try building a holiday fund before you start shopping. From January to July, Jerae puts between $30 and $50 weekly into a high-yield savings account that she’ll later use for Christmas gifts. Only around 1 in 4 holiday shoppers (24 percent) expect to budget for the holidays, but you can be one of them. Learn how to create a sinking fund to avoid going into debt.
2. Start shopping early. The thought of buying gifts in July may sound like holiday creep, but it can actually lead to better deals and help you dodge the December mall frenzy. Take advantage of sales throughout the fall and compare prices without feeling rushed. You could have every item on your list checked off weeks before the holidays, leaving you more time to nosh on cookies and celebrate with your family.
3. Try secondhand shopping. Jerae found a play kitchen for $40 resale, well below the brand-new $100+ price tag. She says kids don’t know or care if a gift is secondhand — and she can find better prices for items with higher quality and more character. Learn how to thrift to help your budget.
4. Use a rewards credit card. You could earn cash back or points on your holiday purchases with one of the best rewards cards. And those rewards could go toward future gifts or a family vacation. Learn how to choose a rewards card.

You can also combine money-saving methods. “Starting early and stacking discounts are strategies that shoppers can deploy to save money,” Rossman advises.

Combine a store promotion with a rewards credit card, an online shopping portal and/or a card-linked offer. You might be able to combine all four money-saving techniques on the same purchase.

— Ted Rossman
Bankrate senior industry analyst

The bottom line

Many Americans are holiday shopping early this year, and possibly with good reason — they’re worried about rising prices and want more time to find the best deals. Just don’t fall prey to impulse shopping during those extra months.

By sticking to a list and a budget, it really could be the most wonderful time of the year.

• Methodology
  

  Bankrate commissioned YouGov Plc to conduct the surveys. All figures, unless otherwise stated, are from YouGov Plc.

  2025 Early Holiday Shopping Survey: Total sample size was 2,567 adults, including 2,020 who expect to participate in winter holiday shopping. Fieldwork was undertaken between July 28-30, 2025.  The survey was carried out online. The figures have been weighted and are representative of all U.S. adults (aged 18+).

  2024 Impulse Shopping Survey: All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,453 adults, including 1,346 who made at least one unplanned/impulse purchase last holiday season. Fieldwork was undertaken between Sept. 30, 2024-Oct. 2, 2024. The survey was carried out online. The figures have been weighted and are representative of all U.S. adults (aged 18+).