Festive cheer, meet financial fear.
The holiday season might still be approaching, but the holiday shopping season is in full swing. And that financial pressure is seriously dimming the merry and bright vibes for many Americans.
According to a new Credit Karma report, nearly half of U.S. adults say they’re stressed about affording the holidays this year, and about one in three are heading into it with more than $5,000 in debt. A similar report from Ingenico found that women, in particular, are feeling the weight of the holiday, with 58% of women saying that the holidays feel less affordable, compared to 47% of men.
Circana’s 2025 report shows that while many people still plan to spend—tradition dies hard—holiday budgets are tightening, and strategizing is underway. People are shopping later and hunting for deals as a way to balance celebration with reality.
But the holiday’s financial tension isn’t just about balancing your budget–– it’s also emotional. Money stress has become one of the biggest holiday mood killers; when spending expectations collide with tighter budgets, guilt and anxiety creep in. Courtney Alev, consumer financial advocate at Intuit Credit Karma, says that gifts aren’t the only financial stressor, either. “The stress goes beyond buying gifts—it includes the cost of travel, hosting, and decorating,” She added that “when you add in economic uncertainty, it’s no surprise people are feeling the pinch. Tariffs and higher costs on certain goods may mean prices are less predictable this year.”
To keep the holiday spirit alive while also keeping your finances in check, Courtney has three tips:
Start by setting a realistic budget early—look at your income, savings, and any existing debt to decide what you can comfortably spend. Then, plan your shopping ahead of time. If you haven’t started your holiday shopping yet, do it now!
Be honest and communicate openly with friends and family about what is realistic this year because chances are, they’re feeling the crunch too. Get creative with meaningful but lower-cost options like homemade gifts, shared experiences, or charitable donations. The thought should always mean more than the price tag.
Keep your long-term goals in mind. It’s better to have a thoughtful, affordable holiday than to start the new year stressed about what you spent or dealing with debt. The goal isn’t to spend the most, it’s to enjoy the season without carrying financial stress into the new year.
Both Circana’s and Credit K