Here’s a number that says a lot about the mood this season: 85% of Americans plan to spend the same amount or less on the holidays than they did last year.
That comes from a new nationally representative WalletHub survey on holiday shopping plans, budgets, and the economy’s effect on both.
The mood matches the math. More than two in three people say the economy will make the holidays less fun. Nearly as many, 67%, say they’d enjoy the season more if nobody exchanged gifts at all.
The Numbers Behind the Pre-Holiday Blues
- 85% will spend the same or less than last year.
- More than 2 in 3 say the economy will make the holidays less fun.
- 62% say inflation affects their charitable giving.
- Nearly 1 in 3 would happily hand their holiday shopping to an AI robot.
- 85% say budgeting in advance helps.
- 67% think the holidays would be more enjoyable without gift exchanges.
WalletHub Editor John Kiernan says you don’t have to cancel Christmas. You just have to use the tools you’ve got. Budgeting ahead makes a big difference, he notes, and the right credit card could save you hundreds of dollars. Picking that card starts with knowing your credit score, which you can check for free on WalletHub.
Seven Ways to Spend Smarter
1. Build a budget you’ll actually follow
You can’t tell whether you’re overspending if you don’t know what you can afford. Start with your monthly take-home pay. Subtract the essentials: rent, food, health insurance, loan and credit card payments, and retirement savings. Decide how much of the rest goes to savings and how much is for fun, shopping included. Then compare your card transactions against that plan.
2. Treat one card like an island
Dedicate at least one credit card strictly to everyday purchases you can pay off in full by the due date. If interest ever shows up on that card, you’re spending too much. Already carrying debt, or planning a big purchase that’ll take months to pay off? Use a 0% card for that instead.
3. Compare prices and set alerts
Comparing retailers is old advice because it works. Make it easier by setting up online alerts for deals at your favorite stores or on specific items on your list.
4. Cut down on the number of transactions
Think of each purchase like a toll booth. Taxes, processing, and shipping fees can tag along every time. Plan your list and buy as much as you can in one go, and you’ll pay fewer tolls.
5. Buy discounted gift cards
Many people don’t know you can save up to 15% on gift cards from major retailers when you buy them online. That works whether the card is for you or for someone else.
6. Let your credit card work for you
Welcome bonuses, 0% financing, and other perks give cards savings opportunities that other payment methods typically lack.
7. Steer clear of deferred interest
Read the fine print on any store-affiliated card advertising a 0% intro rate. According to WalletHub’s Deferred Interest Study, many of these deals let the issuer retroactively charge interest on the entire purchase if you don’t pay the balance in full by the end of the intro period.
Your Next Step
Before you buy a single gift, sit down for twenty minutes and set your budget. Check your credit score, choose the card that fits your plan, and write your shopping list. Then pay off your balance before any promotional period ends.