The Surprising Strategies Shoppers Are Using to Stretch Their Holiday Budgets This Year
Ever wonder how the average American is stretching their dollars thinner than ever in 2025? With middle-income households facing a staggering 23.4% rise in overall spending—and a jaw-dropping 31.6% hike just on necessities—disposable income has shrunk to a razor-thin 4.9%, hitting a 16-year low. You might think the holiday gift game is doomed this year, right? Surprisingly, while Gen Z and Millennials are tightening their belts, Gen X and Boomers are actually gearing up to spend more than ever. Early shopping and clever tricks like Buy Now, Pay Later are becoming the go-to moves for navigating this financially uncertain season. So if you’re wondering how to keep your budget intact while still decking the halls, you’re definitely not alone—and planning ahead might just be your secret weapon. LEARN MORE.
Unfortunately, the average US consumer in 2025 is finding it harder and harder to make ends meet. Middle-income households have seen a 23.4% increase in spending on items across the board and a 31.6% increase in necessities specifically. Consequently, the average share of income that is disposable for US consumers is only 4.9%, which is at its lowest point in 16 years.
So, what does this mean for the holiday season? Naturally, you would think less discretionary income means spending on gifts is going to decrease. While this is true for Gen Z and Millennial consumers, it is actually forecasted that Gen X and Baby Boomers will be spending more this holiday season than in 2024. To help make ends meet during these hard times, consumers are turning to early holiday gift shopping.
It is estimated that 80% of holiday shopping happens by the end of Cyber Monday. Furthermore, around 40% of holiday gift shopping is transacted between the sale-heavy period between Thanksgiving and Cyber Monday. Online purchases also have the option of integrating Buy Now, Pay Later (BNPL) services. These services make spending more accessible, by breaking up the cost of an item into easy installments. BNPL also has a wide range of uses, on anything from electronics to furniture to clothing items. Ultimately, the financial uncertainty of the present day means that getting the gifts for your family this year is going to look a little different. In order to make sure you have enough money budgeted, planning ahead financially is an essential step this holiday season.
Source: Equifax
SME Paid Under
