Most Americans are living paycheck to paycheck… But they’re still planning to spend big for Christmas this year
Americans are preparing to sacrifice everyday essentials to afford Christmas presents this year, with nearly two-thirds planning to cut back on necessities to make room in their budgets for gifts.
A new survey by US News found that 65 percent of Americans plan to reduce their spending on necessities so they can afford their holiday shopping.
The findings point to the growing financial strain facing households as the festive season approaches, with families being forced to make difficult choices about where their money goes.
Rather than simply cutting back on luxuries or expensive celebrations, many are looking at their everyday spending to free up cash for Christmas presents.
It comes as Americans continue to grapple with elevated prices on groceries, housing, utilities and other household expenses, leaving less room in their budgets for the extra costs that come with the holidays.
And while Christmas is traditionally a time when families stretch their budgets to buy presents for loved ones, this year the pressure to spend is colliding with growing concerns about affordability.
A separate survey conducted by Ipsos for financial services company Thrivent found that 68 percent of Americans plan to cut back in at least one area this holiday season because of economic conditions.
Dining out was the biggest target, with 44 percent planning to spend less on restaurant meals, while 32 percent intended to cut back on gifts for family and friends and 31 percent planned to reduce holiday travel spending.
Americans are preparing to sacrifice everyday essentials to afford Christmas presents this year, with nearly two-thirds planning to cut back on necessities to make room in their budgets for gifts
A new survey by US News found that 65 percent of Americans plan to reduce their spending on necessities so they can afford their holiday shopping
The research, conducted among 2,158 Americans between September 29 and October 8, also found that more than half expected the current economic environment to affect their holiday spending at least a fair amount.
Among those more worried about managing their holiday finances, three-quarters pointed to the rising cost of everyday items as a major concern.
Shoppers are also changing how many people they buy presents for, rather than simply looking for cheaper alternatives.
Two-thirds of those cutting back on gifts said they planned to purchase fewer presents overall, up from 56 percent last year, while 46 percent intended to buy gifts for fewer people, compared with 37 percent in 2025.
Around half also planned to choose less expensive presents.
The pressure comes as Americans prepare for another expensive holiday season, with many expecting their gift budgets to stretch less far than they would like.
According to a new Gallup survey, Americans expect to spend an average of $1,011 on holiday gifts this year.
Although that figure is broadly in line with recent years, higher prices mean the same amount of money may not buy as much as it once did.
Nearly two in five American consumers, or 38 percent, plan to use buy now, pay later services to secure their gifts
The findings suggest that even households maintaining their usual Christmas budgets could find themselves having to make sacrifices elsewhere to keep up with holiday traditions.
Meanwhile, a separate 2026 holiday spending report from NerdWallet found that Americans planning to buy gifts expect to spend an average of $879, down 21 percent from $1,107 in 2025.
Despite those reductions, the overall cost of the holidays remains substantial. Americans planning to spend on gifts, travel and other seasonal expenses expect to shell out an average of $2,525.
Credit cards are also expected to play a major role in helping households cover the expense, with 74 percent of holiday spenders planning to use one for seasonal purchases.
Nearly two in five, or 38 percent, also plan to use buy now, pay later services.
But borrowing to cover Christmas could leave families facing another financial headache once the decorations come down.
Among buy now, pay later users, 38 percent said they did not expect to be able to make their payments in full and on time, compared with 25 percent of credit card users who anticipated struggling to clear their balances.
With household budgets already under pressure, the latest figures suggest many Americans could be heading into the new year having sacrificed everyday spending or taken on additional debt to make Christmas special.
