Holiday Gift Budgets Shrink as Credit Use Climbs
Households are buying for fewer people and leaning on cards and buy now, pay later plans to cover the difference.
Updated on Nov. 7, 2026 in Spending
Live Poll
Are you planning to cut back on necessities to afford holiday gifts this year?
Surveys released this fall find many Americans plan to cut back on everyday necessities and dining out to pay for holiday gifts, while leaning more heavily on credit cards and buy now, pay later services. The findings, drawn from a US News survey of 2,158 Americans fielded September 29 to October 8, 2026, point to smaller gift lists and lower planned gift budgets across U.S. households.
Why it matters
Households are responding to continued high prices for groceries, housing and utilities by trimming what they buy for others rather than just hunting for cheaper gifts, which can squeeze budgets and push holiday costs into debt. Because many shoppers expect to carry balances or repay later, the trade-off between this year's gifts and next year's finances is becoming a central household decision.
A US News survey of 2,158 Americans found 65 percent plan to cut spending on necessities to afford holiday shopping, while NerdWallet reports planned average gift spending of $879, down 21 percent from $1,107 in 2025. Survey respondents' plans are self-reported and may not match final holiday outlays.
The players
US News
A consumer news and research publisher whose survey of 2,158 Americans measures household holiday spending plans.
Thrivent
A financial services organization whose commissioned Ipsos survey found 68 percent of Americans plan to cut back in at least one area this holiday season.
NerdWallet
A personal finance website whose report estimates average planned holiday gift spending of $879 this year, down from $1,107 in 2025.
Gallup
A polling firm whose survey projects average holiday gift spending of $1,011 this year.
The details
Many shoppers are reducing how many people they buy for, with 46 percent planning fewer recipients compared with 37 percent last year, and two-thirds of those cutting gift spending planning to buy fewer presents overall. Dining out is the most common cut, with 44 percent planning to spend less on restaurant meals, and 31 percent planning to reduce holiday travel. To cover the gap, 74 percent of holiday spenders plan to use credit cards, and among buy now, pay later users, 38 percent said they did not expect to make payments in full and on time.
Timeline
Survey fieldwork ran from September 29 to October 8, 2026, among 2,158 Americans.
Planned holiday spending and credit use are concentrated in the 2026 holiday season.
Households may face debt repayment in the new year after holiday borrowing.
Money Landscape
The shift follows a period in which household costs for groceries, housing and utilities have stayed elevated, leaving less room in budgets for discretionary holiday spending. Compared with last year's NerdWallet baseline, the planned drop in gift spending marks a notable pullback in household holiday budgets.
If you are planning holiday purchases, the survey data suggests reviewing your budget before shopping, since many households are using credit cards and buy now, pay later plans that may carry repayment obligations into the new year. Consider mapping out gift recipients and planned card balances in advance, and talk with a qualified financial professional if you have concerns about repaying holiday debt.
The takeaway
The main money insight is that holiday budgets are shrinking through fewer recipients and smaller gift totals, while credit is filling the gap. Before committing to holiday purchases on credit, check how much you can repay in full each month and review your statements for any buy now, pay later balances due in January.
Further reading
For broader context on how households are managing budgets, see the Spending section.
Live Poll
Are you planning to cut back on necessities to afford holiday gifts this year?
