Investing Essentials How much do people spend on the holidays?

As the holiday season draws near, as does the stress on our wallets. From extravagant purchases to thoughtful gifts, holiday spending can vary widely. Black Friday, Cyber Monday and the holiday season in general greatly impact how much the average American spends during the holiday season. In this article, we'll cover the world of holiday spending and the factors that influence spending patterns.

How much do people spend on travel during the holiday season?

People spend money on more than just gifts during the holiday season – there’s travel, too.

According to the 2024 Deloitte holiday travel survey, nearly half of Americans plan to take at least one trip during the holiday season (between Thanksgiving and mid-January). Most of these travelers will be paying for their lodging as opposed to staying with family, and have a budget of about $3,294 for all holiday travel expenses.¹

Millennials, Gen X and Boomers are split almost evenly among the demographic groups who will be traveling with about a third of total travels being made up of each group. Gen Z comprises the smallest traveling group with 14% of holiday travelers being from that group.²

The largest reason for travel during the holiday season for all demographic groups is to reconnect with family and friends.³

How much do people spend on gifts during the holiday season?

According to the National Retail Federation, shoppers are expected to spend about $902 in shopping during the holiday season, $641 of which goes to gifts while the rest is used on things like decorations, candy or food. This total marks an increase from last year, and breaks the previous record set in 2019.⁴

The majority of shoppers (62%) don’t expect to be finished with their holiday shopping until December, even though 45% of holiday shoppers start their shopping before November.⁵

Historical holiday sales data shows that total holiday spending has increased almost every year for the last 20 years, and this year will be no different. Americans are expected to spend 2.5%–3.5% more this holiday season, reaching an estimated total between $979.5 billion and $989 billion.⁶

With all of this projected spending, it may not be a surprise that 75% of consumers are looking for deals this holiday season.⁷

Where are shoppers buying gifts?

Most shoppers (57%) will buy their gifts online, with department stores or discount stores being the next two popular shopping destinations during the holiday season (46% and 45%, respectively).⁸

Younger consumers (ages 18 to 24) are outpacing all adults in heading to thrift stores, which could be reflective of the appeal secondhand shops offer in affordability and sustainability.⁹

The most popular gifts are gift cards. Fifty-five percent of holiday shoppers say they would like to receive them, while clothing and accessories follow closely behind (49%). Books, video games or other media and personal care or beauty items follow after with 28% and 25%, respectively.¹⁰

The bottom line

The holiday season is not only a time for warmth and togetherness, but also a season of financial decisions. With an average of $3,294 allocated for holiday travel and $902 designated for gifts and decorations, the holiday expenses can add up quickly. It's clear that many start their shopping early to manage these costs efficiently.

If you haven't already, now might be the time to make your holiday shopping or travel plans and take advantage of deals before the holiday rush. Whether you're booking that cozy winter getaway or filling your online shopping cart, consider your options wisely, and don't forget to embrace the spirit of giving and reconnecting with loved ones during this special time of the year.