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NEW YORK — The holidays aren’t cheap, and a new survey is revealing just how big of a financial hole some Americans are digging before the calendar turns to 2025. Overall, the average American will spend over $2,000 this season. However, many don’t have this cash on hand, meaning they’re piling up skyrocketing amounts of debt. In fact, the average person has accumulated over $23,000 in debt.
The survey of 2,000 Americans who celebrate a winter holiday examined the cost breakdown of the holiday season — as well as how Americans have been impacted by 2024’s financially challenging climate. According to the results, the most expensive holiday bill revolves around transportation, with those planning to travel this year (64%) spending an average of $846.
“Putting on” the holidays ranks as the next most expensive chore. Respondents said they’ll spend roughly $658 getting their home ready with decorations. Other big-ticket items include holiday food and refreshments ($155), throwing parties ($123), and holiday clothing and outfits ($107). When it comes to gifts, Americans plan to spend an average of $559 on their loved ones this year, with the most money being spent on kids ($117) and partners ($92).
Commissioned by Achieve and conducted by Talker Research, the research confirmed what many have felt this year: For the majority of respondents (61%), 2024 is in their top five most financially challenging years ever.
With that in mind, more than four in 10 Americans (43%) are “going lean” this holiday season and will spend less this year compared to years past. two in three people (65%) are stressed about their holiday spending this year and 73% say their financial stress takes away from their enjoyment of the season. For nearly one in five (17%), their financial anxiety completely ruins their enjoyment of the season.
Looking ahead, a fifth (20%) believe they won’t financially recover from the 2024 holiday season until May 2025 or later. As for how Americans plan to pay for the holidays this year, respondents also said that a fifth of their holiday expenses (20%) will be put on a credit card. In fact, 28% have already or plan to open a new line of credit to cover their holiday shopping.
“While the holidays can be one of the best times of the entire year, they can also be the most stressful,” says Brad Stroh, co-founder and chief executive officer at Achieve, in a statement. “And while most want to put money into making the season special for their loved ones, there can also be pressure from internal and external sources to spend beyond your means. It’s important to take a step back and evaluate your spending habits during the holidays.”
According to the research, 37% of those who celebrate the holidays have gone into debt in years past due to holiday spending. Almost one in five (17%) think it’s likely they’ll go into holiday debt this year.
Looking at how this impacts existing debt, Americans’ average unsecured debt (debt not backed by collateral) totals $23,554. However, a quarter (25%) said they’re not even sure how much debt they have. Digging deeper, 31% of those with debt reported it’s increased this year and 36% said it’s stayed the same. In contrast, only 14% reported their debt has decreased this year.
Examining how this influences everyday spending, respondents said they’ve spent more on groceries (48%), rent or mortgage payments (30%), insurance (29%), medical bills (26%), and daily transportation (26%) in 2024 compared to 2023.
Seeing where they’ve had to trim, Americans have spent and contributed less to their discretionary budgets (39%), emergency savings (26%), retirement savings (20%), gifts (31%), and travel (25%) in 2024 compared to 2023.
“This study shines a light on how such a financially challenging year is impacting the holiday season and how much people are able to enjoy it,” Stroh says. “For people who are struggling this season, or just in general, there are many ways to take simple steps to move their financial situation forward. These can range from establishing and adhering to a budget to talking to a financial expert to taking a break from your credit card entirely.”
Survey methodology
Talker Research surveyed 2,000 Americans who celebrate a winter holiday; the survey was commissioned by Achieve and administered and conducted online by Talker Research between Nov. 5 and Nov. 8, 2024.
