Holiday spending is a highly personalized number. As long as it fits your budget, there’s no right or wrong amount to spend.
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While you shouldn’t compare your holiday budget to that of your peers, it can be interesting to know where you stand.
Keep reading for tips to help you save money on the 2025 winter holiday season.
Practical Ways To Cut Costs Without Cutting Holiday Joy
Consumers expect to spend an average of $1,595 this holiday season, according to the 2025 Deloitte Holiday Retail Survey. This marks a 10% decrease from 2024.
Most — 85% — shoppers expect prices to increase this year due to tariffs, according to the National Retail Federation. Consequently, 54% of consumers who plan to start their holiday shopping early are doing so to spread out their budget.
To combat anticipated price hikes, 70% of shoppers in all income groups are planning to cut costs by using at least three money-saving strategies, according to Deloitte. Both genders will engage in these strategies, but more women — 78% — are expected to do so than men — 58%.
Clearly, you’re not alone if you’re working with a smaller budget this year or are struggling to pay for your standard expenses with the same amount of funds as last year.
Review Last Year’s Spending
Setting a holiday budget is one thing — sticking to it is another. Give yourself a reality check by looking at your holiday spending from last year — for example, reviewing credit card statements and receipts — to see how much you actually spent.
Past behavior is a solid indicator of future behavior. Being aware of areas where you may have overspent last year can help you make conscious decisions to change this year.
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Track Your Spending
Don’t wait until the end of the holiday season to realize you’ve gone over budget. Carefully monitor your spending throughout the season, so you know where you stand.
If needed, this will slow down your spending before you find yourself in a situation where you have to sacrifice expenses that are important to you. Think of it as a holiday challenge you’re committed to meeting.
Change Gift-Giving Patterns
If you have a lot of names on your gift list — a large family, friends, colleagues — consider changing the norms of this tradition. Talk to your loved ones and make a new plan that doesn’t involve everyone buying a gift for everyone else.
For example, each person could draw one name out of a hat, you could go out for a nice meal instead, or opt to exchange handmade goods. This can allow you to save a significant amount of money while creating a more meaningful tradition.
Comparison Shop
It’s no secret that many products are sold by a variety of retailers. If you find a sale or are shopping at a discount retailer, you might assume you’ve found the best price, but you won’t know until you shop around.
In today’s smartphone era, this can be as simple as doing a quick search for the product on your device while standing in the store. This will allow you to avoid paying extra for an item with money that could be allocated elsewhere.
Search for Promo Codes
More than half (55%) of consumers are planning to shop online this holiday season, according to the NRF. If you fall into this category, don’t click the buy button until you’ve searched for promo codes.
Some are clearly advertised on a retailer’s website, while others require a little digging. You won’t always find success with this approach, but you won’t regret trying when you find a code that works.
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This article originally appeared on GOBankingRates.com: Here’s the Average Budget for 2025 Holiday Gatherings — Where Does Yours Stack Up?
