Economic outlook How much do people spend on the holidays?
- Americans are projected to spend an average of $2,334 on 2025 holiday travel expenses, down 18% from 2024, with many travelers opting to stay with friends and family over paying for lodging.
- Shoppers are set to spend approximately $890 during the holiday season, with many starting their shopping before November, and historical data indicates a consistent year-over-year increase in total holiday spending, projected to reach over $1 trillion in 2025.
- Online shopping is the preferred method for 55% of holiday shoppers this year, and gift cards are a popular gift choice, with 50% of holiday shoppers expressing their preference for them, followed by clothing and accessories at 46%.
The holiday season can put some serious 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 2025 Deloitte holiday travel survey, more than half of Americans plan to take at least one trip during the holiday season (between Thanksgiving and early January). More of these travelers will be paying for their lodging as opposed to staying with family, but there’s an increase in holiday travel from 2024 that’s due to more people traveling purely to see/stay with family. Travelers have a budget of about $2,334, on average, for all holiday travel expenses.1
More millennials will be traveling than other age groups, with 33% of travelers falling into this demographic, followed by 26% who are Gen X and 23% who are baby boomers. Gen Z comprises the smallest traveling group, with 17% of holiday travelers being from that group.2
Nearly one in three Americans report their financial situation is worse compared to a year ago, which underscores a holiday season where people are taking fewer trips (despite more of them traveling in general) and spending less when they do travel.3
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How much do people spend on gifts during the holiday season?
According to the National Retail Federation, shoppers are expected to spend about $890 on shopping during the holiday season, $628 of which goes to gifts while the rest is used on things like decorations, candy/food and greeting cards. This total marks the second-highest year on record, though it is a 1.3% decrease from last year.4
Average spent on the holidays since 2019
The majority of shoppers (60%) don’t expect to be finished with their holiday shopping until December, even though 42% of holiday shoppers started 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. Holiday sales are expected to surpass $1 trillion for the first time, though individually, consumers are actually projected to spend about $12 less apiece than they did in 2024.6
Where are shoppers buying gifts?
Most shoppers (55%) will buy their gifts online, with grocery stores, department stores and discount stores being the next three popular shopping destinations during the holiday season (46%, 44% and 42%, respectively).7
Top 10 holiday shopping destinations of 2025
The most popular gifts are gift cards. Fifty percent of holiday shoppers they would like to receive them, while clothing and accessories follow closely behind (46%). Books, video games or other media and personal care or beauty items follow after with 27% and 23%, respectively. Other popular gift items include electronics, home décor and jewelry.8
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 $2,334 allocated for holiday travel and $890 designated for gifts and decorations, the holiday expenses can add up quickly.
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.
For important disclosures, please refer to the disclosures section for detailed information.
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Seth Carlson
Editorial staff, J.P. Morgan Wealth Management
Editorial staff, J.P. Morgan Wealth Management
Seth Carlson is on the editorial staff of the J.P. Morgan Wealth Management (JPMWM) content team. Prior to joining JPMWM, he worked in higher education admissions and enrollment management marketing at Mercy University in New York. There ...More
Footnotes
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1
Deloitte, “2025 Deloitte Holiday Travel Survey.” (November 2025)
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2
Ibid.
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3
Ibid.
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4
National Retail Federation, “Consumers to Spend Second-Highest Amount on Record, According to NRF Holiday Survey.” (October 2025)
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5
Ibid.
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6
National Retail Federation, “NRF Expects Holiday Sales to Surpass $1 Trillion for the First Time in 2025.” (November 2025)
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7
National Retail Federation, “Consumers to Spend Second-Highest Amount on Record, According to NRF Holiday Survey.” (October 2025)
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8
Ibid.