Holiday Budget Cuts Hold at 68% as U.S. Households Face Rising Costs

Holiday cutbacks remain widespread, but the way households are trimming spending is shifting. In a Thrivent survey, 68 percent of U.S. adults said they plan to reduce at least one holiday expense in 2026, roughly in line with 2025. Among people cutting gift spending, more respondents now expect to buy fewer presents and shop for fewer people. That points to choices about the size of celebrations, not just the price of each purchase.

Thrivent, a financial services company, commissioned Ipsos to conduct the survey from September 29 to October 8, 2026. It drew on a probability sample of 2,158 U.S. adults. The reported margin of sampling error is plus or minus 2.2 percentage points at the 95 percent confidence level. Those figures describe the survey’s sampling uncertainty; they don’t remove the possibility that individual households will make different choices as the season unfolds.

Gift plans show a change in behavior

Among respondents reducing gift spending, 66 percent said they plan to purchase fewer gifts, compared with 56 percent in 2025. The share planning to buy for fewer people rose to 46 percent from 37 percent. Meanwhile, 51 percent said they expect to choose less expensive items.

These approaches can overlap: a household might buy fewer gifts, spend less per gift and shorten its list. Still, the increase in plans to reduce the number of purchases and recipients suggests that some consumers are changing the shape of their gift giving, not simply searching for lower prices. That may reflect budgets already under pressure from costs that extend beyond seasonal shopping.

The largest planned reductions span routine social spending and bigger holiday expenses. Dining out was cited by 44 percent of respondents, gifts for family and friends by 32 percent, and travel by 31 percent. Among those cutting travel spending, 60 percent said they don’t plan to travel during the holidays, up from 56 percent in 2025. Gasoline prices are weighing on household finances for 71 percent of respondents.

For clients working through debt or year-end budgeting, these categories can connect directly to broader planning conversations. Debt management and year-end financial planning may become more pressing when travel, meals and gifts all compete for the same available cash. The survey doesn’t quantify how much households intend to save, or how many will rely on credit, so it offers a picture of planned behavior rather than a forecast of total holiday spending.

Everyday costs are adding pressure

Nearly four in ten Americans, 38 percent, said they feel more anxious about managing holiday finances than in prior years. Among that group, 75 percent pointed to rising prices for everyday items. Across all respondents, 72 percent said inflation is having a negative effect on household finances as the season approaches. Another 35 percent said they had already reduced spending on essentials over the prior six to twelve months.

Those responses place holiday choices within a wider squeeze on household budgets. When essential spending has already been cut, a lower gift budget may be part of a series of adjustments rather than an isolated seasonal decision. More than half of respondents, 52 percent, said the current economic environment would affect their approach to holiday spending at least a fair amount. The survey doesn’t break that figure down by income or age, limiting what it can show about which groups face the greatest strain.

“The holidays can bring pressure to show people we care through spending, but higher everyday costs are forcing many families to make difficult choices about what they can realistically afford,” said Alexander Newby, a financial advisor at Thrivent in Minneapolis, Minnesota. “The goal isn't to spend your way to a meaningful holiday. Start with what you can afford, decide what matters most, and build a plan that takes both into account.”

The figures suggest this pressure reaches across age groups, though the survey results provided here don’t offer a detailed generational comparison. Advisors tracking younger clients’ responses to seasonal financial pressure may see familiar concerns among other households too: keeping spending manageable while navigating expectations around gifts, gatherings and travel.

Planning conversations can start with priorities

Newby recommends setting a spending limit based on current finances, deciding in advance how to use that amount, and avoiding credit to cover holiday purchases. Options for reshaping the budget include buying fewer gifts, arranging simpler exchanges or prioritizing shared experiences. His approach ties the spending plan to what a client values, rather than treating a lower budget as a generic exercise in restraint.

That distinction matters because a seasonal budget is only useful if it fits both a household’s cash flow and its priorities. A spending limit grounded in current finances can make trade-offs clearer before purchases accumulate. Using credit to bridge a gap may also leave less room for other expenses later; Newby warns that holiday borrowing can create first-quarter cash flow stress and affect retirement saving timelines.

For advisors, the weeks before December offer a timely opening to discuss spending habits, short-term debt and the effects of unplanned seasonal outlays. Those conversations may also help set expectations for January reviews. The same tension between emotional pressure and financial limits can become sharper during major life changes, including divorce settlements during the holiday season.

The central signal is not simply that households plan to spend less. It’s that many are reducing the number of gifts, narrowing their recipient lists and reconsidering travel while everyday costs remain a source of anxiety. Whether those plans translate into lower spending will depend on household circumstances, but the survey makes clear that seasonal budgets are being set against financial pressures many families already feel.