Here’s How Much the Average American Is Expected to Spend This Holiday Season

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The official start to the holiday shopping season is just weeks away, and some early birds have already begun making purchases. Even if you haven’t yet, you probably already have some idea of who you need to buy for and how much you’re comfortable spending.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. The average American is poised to spend more than ever this year, according to a recent PwC survey. But there’s also a substantial minority hoping to keep costs down. With the right strategies, you can get what you need without putting too much of a strain on your savings account.Average holiday spending is expected to rise 7% this yearLast year, PwC forecasted that the typical American would spend about $1,530 on holiday purchases. This year, that figure rose 7% to $1,638 per person. Part of this is due to inflation, but it may also reflect an increased desire to splurge among some shoppers.Income is an important factor here. More than one-third of consumers earning more than $65,000 annually said they planned to spend more this year compared to just one-fifth of those earning less than $65,000.Expected spending is also estimated to vary across age groups, as shown below:GenerationAverage Expected Holiday Spending per PersonBaby boomers$1,126Generation X$1,454Millennials$2,222Generation Z$1,752Data source: PwC Holiday Outlook 2024.Even if you fall toward the lower end of this spectrum, that’s still a lot of money to spend, especially if you’re living paycheck to paycheck. But you can do a few things to make your holiday spending a little less painful.Get what you need without spending a fortuneThe following tips can help you buy what’s on your list without spending a fortune this holiday season.Be discerningThink carefully about how much you can afford to spend and who you need to buy for. Eliminate any unnecessary purchases. Avoid buying things for yourself as well. You may receive money or gift cards you can use to buy yourself a present, possibly on clearance, after the holidays are over.Use the right credit cardsCarrying a balance on a credit card generally isn’t advisable, but it’s not as bad if you choose a card with a 0% introductory APR period. Purchases you make during this time won’t accrue interest immediately, so you have a little more breathing room when paying back what you owe. Compare some of our favorite 0% introductory APR cards to save yourself a fortune in credit card interest this holiday season.If you have rewards credit cards, you can also redeem the points you’ve earned throughout the year for gift cards. You can either give these as gifts directly or use them to purchase your holiday gifts.Shop salesBlack Friday is the biggest holiday shopping sale, but it’s not the only one. Make a list of what you’d like to buy and which retailers have it. Then, sign up for those retailers’ mailing lists so you’re alerted to upcoming sales. You might even get coupons you wouldn’t otherwise have found that way.Use price comparison appsPrice comparison apps like Google Shopping or Camelcamelcamel can help you find the cheapest retailers and track an item’s price over time. This can help you know when you’re actually getting a good deal vs. when a retailer is using marketing tactics to make you think you are.Consider DIY giftsIf you have an artistic talent, consider making holiday gifts instead of buying some. Or if you’re a great baker, for example, you can whip up some special holiday treats. You’ll still have to spend a little money on the cost of materials, but chances are, it’ll probably be less than what you’d pay to buy an item like that in a store.As the holiday shopping season continues, track how much you spend and compare that to your initial estimates. You may need to adjust along the way. But taking advantage of the above tips should help you keep your costs lower.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Kailey Hagen has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy.”}]] [[{“value”:”

The official start to the holiday shopping season is just weeks away, and some early birds have already begun making purchases. Even if you haven’t yet, you probably already have some idea of who you need to buy for and how much you’re comfortable spending.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

The average American is poised to spend more than ever this year, according to a recent PwC survey. But there’s also a substantial minority hoping to keep costs down. With the right strategies, you can get what you need without putting too much of a strain on your savings account.

Average holiday spending is expected to rise 7% this year

Last year, PwC forecasted that the typical American would spend about $1,530 on holiday purchases. This year, that figure rose 7% to $1,638 per person. Part of this is due to inflation, but it may also reflect an increased desire to splurge among some shoppers.

Income is an important factor here. More than one-third of consumers earning more than $65,000 annually said they planned to spend more this year compared to just one-fifth of those earning less than $65,000.

Expected spending is also estimated to vary across age groups, as shown below:

Even if you fall toward the lower end of this spectrum, that’s still a lot of money to spend, especially if you’re living paycheck to paycheck. But you can do a few things to make your holiday spending a little less painful.

Get what you need without spending a fortune

The following tips can help you buy what’s on your list without spending a fortune this holiday season.

Be discerning

Think carefully about how much you can afford to spend and who you need to buy for. Eliminate any unnecessary purchases. Avoid buying things for yourself as well. You may receive money or gift cards you can use to buy yourself a present, possibly on clearance, after the holidays are over.

Use the right credit cards

Carrying a balance on a credit card generally isn’t advisable, but it’s not as bad if you choose a card with a 0% introductory APR period. Purchases you make during this time won’t accrue interest immediately, so you have a little more breathing room when paying back what you owe. Compare some of our favorite 0% introductory APR cards to save yourself a fortune in credit card interest this holiday season.

If you have rewards credit cards, you can also redeem the points you’ve earned throughout the year for gift cards. You can either give these as gifts directly or use them to purchase your holiday gifts.

Shop sales

Black Friday is the biggest holiday shopping sale, but it’s not the only one. Make a list of what you’d like to buy and which retailers have it. Then, sign up for those retailers’ mailing lists so you’re alerted to upcoming sales. You might even get coupons you wouldn’t otherwise have found that way.

Use price comparison apps

Price comparison apps like Google Shopping or Camelcamelcamel can help you find the cheapest retailers and track an item’s price over time. This can help you know when you’re actually getting a good deal vs. when a retailer is using marketing tactics to make you think you are.

Consider DIY gifts

If you have an artistic talent, consider making holiday gifts instead of buying some. Or if you’re a great baker, for example, you can whip up some special holiday treats. You’ll still have to spend a little money on the cost of materials, but chances are, it’ll probably be less than what you’d pay to buy an item like that in a store.

As the holiday shopping season continues, track how much you spend and compare that to your initial estimates. You may need to adjust along the way. But taking advantage of the above tips should help you keep your costs lower.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Kailey Hagen has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy.

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