Rising Costs and Tight Budgets Define America’s 2025 Holiday Season, Surveys Reveal

Rising Costs and Tight Budgets Define America’s 2025 Holiday Season, Surveys Reveal

As the holiday season approaches, new survey data indicates that Americans are tightening their belts amid mounting costs for food, gifts, and festive gatherings. A series of recent studies have revealed how consumers across the United States are managing the financial pressures of the holidays — from stretching budgets to relying on seasonal work to make ends meet.

Thanksgiving Spending Approaches £800 Per Household

This year’s Thanksgiving celebrations are expected to carry a significant price tag for many families. According to a survey of 2,000 U.S. adults who celebrate Thanksgiving — evenly split by generation — the average American expects to spend almost $1,000 (around £780) on the event.

The results showed that those polled will spend an average of $175 on food alone this year and another $110 on drinks. These figures highlight the growing financial strain of festive traditions as inflation continues to impact household budgets across the country.

Thanksgiving remains a key cultural celebration in the United States, but the rising costs suggest that many households will need to balance their enthusiasm with financial caution. Some may reduce spending in other areas to afford the annual feast, illustrating how inflation is shaping holiday habits even in high-priority celebrations.

Gift-Giving Turns Practical as Budgets Tighten

A separate survey of 2,000 adults who shop online found that practicality and price are influencing this year’s gift-giving decisions. Americans appear to be keeping budgets at the forefront of their minds, with more than a third (36%) splitting at least one gift with a friend or family member.

This growing trend of collaborative gifting enables people to stretch their budgets while maintaining a personal touch in their presents. As living costs rise and economic uncertainty persists, many consumers are prioritising meaningful yet affordable gestures over extravagant spending.

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Retail analysts suggest this behaviour signals a wider shift towards more mindful consumption. With many households focusing on affordability, major retailers and e-commerce platforms are expected to adapt their marketing strategies to highlight value and practicality rather than luxury.

Parents Turn to AI to Monitor Teen Drivers

In another area of consumer spending, a new study has found that parents are investing heavily in technology to keep their teenage drivers safe. The survey of 2,000 American parents with a teen driver revealed that families spend an average of $6,000 a year on driving-related expenses.

The research also showed that parents fight with their kids more about driving than dating, reflecting the stress and concern associated with teenage road safety. According to the findings, 51% of parents disagree with their teens about driving, compared with 48% about screen time, 39% about grades, 35% about life plans, and 32% about dating.

As a result, parents are increasingly turning to AI-based safety technologies to monitor their children’s driving behaviour. These systems, which can track speed, location, and phone use, are viewed as tools for reassurance — though they also add to the overall cost of raising a young driver.

Seasonal Workers Rely on Holiday Pay to Stay Afloat

For many Americans, the holidays are not just a time for celebration but also a critical opportunity to earn additional income. A separate survey of 1,000 people who have or plan to take on a seasonal job revealed that 60% of seasonal employees depend on these roles to pay for essential expenses during the festive period.

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On average, respondents said they need to earn $6,209 to stay financially stable over the holidays. For some, these temporary roles in retail, logistics, and hospitality have become vital for covering day-to-day costs rather than simply supplementing income.

The findings underscore the importance of seasonal employment in supporting the wider economy. As businesses ramp up staffing to meet holiday demand, many workers are relying on these opportunities not just for extra cash but for financial survival.

Economic Pressures Shape a Leaner Festive Season

Taken together, the surveys paint a clear picture of an American public navigating the holidays with a cautious approach to spending. Rising costs of food, fuel, and gifts are driving a shift toward practicality, collaboration, and financial resilience.

While the holiday season remains a cherished time for generosity and connection, the latest data reveals a marked change in consumer behaviour. Americans are adapting to economic realities — finding creative ways to preserve festive spirit without overextending themselves financially.

As 2025 draws to a close, the message from these surveys is clear: the holidays will go on, but with thrift and thoughtfulness at their core.

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