Holiday Spending Projected to Reach Record Levels
Consumers with children face average costs near $900 as inflation influences holiday budget planning.
Updated on Oct. 27, 2026 in Spending
Live Poll
Do you plan to reduce your holiday spending this year due to current economic conditions?
Holiday shopping for the 2026 season is underway, with consumer spending projected to reach record highs. While many households prepare to budget for these upcoming expenses, a significant majority of shoppers report that the current state of the economy is influencing their spending plans.
Why it matters
Holiday spending remains a significant financial pressure point, with inflation cited as a primary driver of rising costs. Understanding these trends helps households navigate the trade-offs between seasonal gift-giving and maintaining long-term financial stability.
Consumers are projected to spend an average of $700 on holiday shopping, with that figure rising to nearly $900 for households with children. Last year, 37% of shoppers accrued more than $1,200 in holiday-related debt.
The details
Inflation continues to increase the cost of seasonal purchases, prompting many households to look for ways to manage their budgets. Nearly 30% of consumers plan to leverage AI tools this year to research products, compare prices, and track their spending. Meanwhile, shifts in consumer behavior are emerging, as millennials anticipate a 10% reduction in gift spending and a 37% cut to travel budgets compared to previous patterns.
Timeline
2025 holiday season data shows 37% of shoppers accrued over $1,200 in debt.
2026 holiday season shopping is currently underway.
Money Landscape
Holiday spending trends are currently shaped by sustained inflationary pressure that influences household planning. This development follows a multi-year cycle where significant portions of the population have consistently relied on debt to fund seasonal obligations.
Households should evaluate their current budget to determine how much cash is available for seasonal spending without relying on high-interest credit. If you are concerned about managing holiday costs, consider discussing your debt-repayment strategy and annual savings goals with a qualified financial professional.
The takeaway
Holiday spending is on track for record levels, making proactive budgeting essential to avoid repeating last year's debt patterns. Review your financial statements now to establish a clear spending limit before the peak of the shopping season.
Further reading
For tips on tracking your seasonal costs, visit our Spending section.
Live Poll
Do you plan to reduce your holiday spending this year due to current economic conditions?
