Holiday Gift Budgets Hold at About $1,000 as Many Families Feel the Squeeze

With Thanksgiving less than two weeks away, new surveys show American families are planning a holiday season that looks a lot like last year on paper, but feels tighter in the checking account.

Americans expect to spend an average of $1,011 on holiday gifts this year, Gallup reported. That is essentially unchanged from $1,007 in 2025 and $1,014 in 2024. Most people, 54%, say they will spend about the same as last year, while 24% plan to spend less and 18% plan to spend more.

Gallup’s survey of 1,200 adults was conducted Oct. 1-19 and has a margin of error of plus or minus 4 percentage points. Based on the results, Gallup projects holiday retail sales will grow about 3.1% this year, close to the long-term average.

A trillion-dollar season, with caution underneath

The National Retail Federation forecasts holiday sales of $1.013 trillion across November and December, Forbes reported, with modest growth and online shopping rising faster than in-store sales. Adobe expects U.S. online holiday sales of $275.1 billion, up 6.7% from last year, including $47.5 billion during Cyber Week alone.

Yet the same reporting describes shoppers who are stretched. Forbes cited The Conference Board’s finding that consumer confidence is at its lowest level since 2014, and a Pew Research finding that 4 in 10 Americans have trouble affording basic necessities. A DOSS survey found 45% of shoppers expect to buy fewer gifts this year. Among Walmart shoppers, 43.8% said affording the holidays is their top stressor, the company’s data showed.

Retailers are responding with price cuts. Target has lowered prices on about 2,000 items and is offering more than 8,000 new gifts, more than half of them priced at $20 or less, according to Forbes.

Those trends match what Upstormed News found earlier this week about what shoppers want this holiday, from collectible cards to store brands.

How families can keep the season joyful and affordable

Set one number first. Decide your total holiday budget before you shop, then divide it by person. It is easier to stick to a plan than to a feeling.
Shorten the list together. Many families are trading individual gifts for a family gift exchange or one shared experience.
Watch “buy now, pay later.” Forbes notes that installment plans are growing as shoppers spread out payments. They can help, but missed payments can add fees, and several plans at once are easy to lose track of.
Compare prices before Black Friday. Many retailers already have early deals, and price-tracking tools can show whether a “sale” is really a discount.
Remember the gifts that cost little. Time, handwritten notes, a home-cooked meal or service to a neighbor are often the gifts people remember most.

Our recent survey story found that 81% of parents say holiday traditions matter, and many say simple ones work best.

Why it matters for families

Higher prices for groceries, gas and housing have left less room for extras. A flat gift budget in a year of rising prices means each dollar buys a little less. Planning early, talking openly as a family and focusing on meaning over volume can protect both your budget and your peace. This is general information, not financial advice.

Is your family spending more, less or about the same on gifts this year? Share your best budget tip in the comments.

Sources: Gallup, “Holiday Shopping Plans Point to Average Retail Year” (Nov. 2026); Forbes, “2026 Holiday Spending To Top $1 Trillion As Consumers Pull Back Spending” (Nov. 9, 2026)