This winter, amid the holiday parties and gift-giving, many Americans will be doing their best to keep holiday celebrations within budget. While the current annual inflation rate is back to levels seen in early 2021, prices of common goods going into the holiday season are still much higher than they were pre-pandemic, according to the Bureau of Labor Statistics (BLS). Many are changing their holiday spending behavior, as a result.

To provide the latest information on holiday spending habits, Bankrate conducted several surveys with polling agency YouGov Plc over the last year. In each poll, Bankrate surveyed over 2,000 Americans over the age of 18 on topics like impulse spending, unused gift cards and holiday travel and shopping.

The resulting data, weighted to represent all U.S. adults, provides a full picture of Americans’ spending habits during the holiday season. For example, our October 2024 Impulse Shopping Survey found that last year, 54% of U.S. adults made at least one impulsive purchase during the holiday season, often spurred by a deal or sale. This year, shoppers may still be searching for bargains: 33% of holiday shoppers expect to spend less on holiday purchases than they did in 2023, according to Bankrate’s September 2024 Early Holiday Shopping Survey.

Bankrate’s key findings on holiday spending

—Impulse purchases were common in 2023. Fifty-four percent of U.S. adults made at least one impulse purchase last holiday season. (Source: Bankrate’s Impulse Shopping Survey)

—A good deal tends to lead to impulse buying When asked what inspired their unplanned or impulse purchase(s) last year, 44% of purchasers say they thought the purchase was a good deal, or it was on sale. Others say it made a good holiday gift for someone else (38%); they wanted to treat themselves (29%); it was something they had previously considered buying (27%); or it was inspired by social media posts (22%). (Source: Bankrate’s Impulse Shopping Survey)

—Some shoppers will cut back this year 33% of holiday shoppers expect to spend less in 2024 than they did in 2023. Thirty-four percent say inflation will change how they shop. (Source: Bankrate’s Early Holiday Shopping Survey)

Younger adults are most likely to make holiday impulse purchases

Even if you usually wait before making a big purchase, it’s easy to pull out your credit card when you see the perfect gift for someone. Nearly one-third (31%) of Americans made an unplanned/impulse purchase for their family members; 15% made one for friends; and 5% made one for acquaintances.

Around one-quarter (28%) of people made an unplanned/impulse purchase for themselves.

Generally, younger Americans were more likely than older Americans to have made an unplanned/impulse purchase last holiday season:

—Gen Zers (ages 18-27): 70%

—Millennials (ages 28-43): 65%

—Gen Xers (ages 44-59): 50%

—Baby boomers (ages 60-78): 41%

That’s not all: Younger Americans were also likelier than older generations to have made an unplanned/impulse purchase for themselves:

—Gen Zers: 44%

—Millennials: 39%

—Gen Xers: 24%

—Baby boomers: 12%

Social media makes it easy to impulse shop

Influencers online are constantly touting new products, which makes it easy to spend impulsively. However, you can practice “deinfluencing."

As for parental status, more than two-thirds (69%) of parents of children under the age of 18 made an unplanned/impulse purchase last holiday season — compared to 48% of parents of adult children and 54% of non-parents.

Additionally, people who report a household income of $50,000 or more were more likely to have made an unplanned/impulse purchase last holiday season, compared to those below that income threshold:

—Less than $50,000 per year: 49%

—$50,000-$79,999: 61%

—$80,000-$99,999: 65%

—$100,000 per year or more: 62%

Impulse shoppers often buy something just because it’s a good deal

A large portion of Americans were chasing deals last holiday season. More than 2 in 5 (44%) people who made unplanned/impulsive purchases last holiday season bought it because they thought it was a good deal or because it was on sale. Others thought it made a good gift for someone else (38%), wanted to treat themselves (29%) or the purchase was something they had previously considered buying (27%).

Social media influences many younger Americans’ holiday shopping

Nearly 1 in 4 (22%) people who made unplanned/impulse purchases last holiday season were influenced by social media in some way:

—Influenced by posts from brands/advertisers: 13%

—Influenced by posts from influencers: 10%

—Influenced by posts from friends/family/acquaintances: 10%

A slim percentage (7%) were influenced to make an unplanned/impulse purchase from other advertising, such as TV, radio, online ads or billboards.

Perhaps unsurprisingly, Gen Zers are the likeliest generation (36%) to say they were inspired to make an unplanned/impulse purchase from social media, followed by millennials (31%), Gen Xers (14%) and baby boomers (6%).

Cyber Monday is more popular than Black Friday this year

Key findings from Bankrate's Small Business Saturday Survey

This year, the majority of Americans will be looking for their Thanksgiving weekend holiday deals online. More than half (59%) of Americans say it’s likely they’ll buy something on Cyber Monday, a higher percentage than those who say they’re likely to shop on Small Business Saturday (50%) or Black Friday (53%), according to Bankrate’s November 2024 Small Business Saturday Survey.

Rossman attributes the lackluster Black Friday enthusiasm to the fact that this year, Thanksgiving isn’t until November 28. Additionally, with so many consumers starting their shopping before Halloween, Black Friday no longer feels like the start of the holiday shopping season. (Forty-eight percent of U.S. adults bought something during early October sales events, such as Amazon Prime Big Deal Days, Target Circle Week and Walmart’s Holiday Deals.)

“Thanksgiving Weekend has become more of a midseason event rather than the kickoff it used to be. That’s especially true this year with only 26 days between Thanksgiving and Christmas,” Rossman says.

More than 1 in 4 holiday shoppers are stressed about the cost of shopping

As Americans face high holiday prices, many expect to spend a lot in the last few months of the year.

Nearly half (43%) of holiday shoppers expect to spend the same amount on holiday shopping as last year, and 24% expect to spend more, according to Bankrate’s Early Holiday Shopping Survey. One-third (33%) of holiday shoppers plan to spend less on holiday shopping than last year.

Given the high cost of gifts, decorations and food this year, 28% of holiday shoppers are stressed about the cost of holiday shopping — up from 25% in 2023. What’s more, 28% say holiday shopping will strain their budgets, and 16% will feel pressured to spend more than they’re comfortable with.

The majority of holiday travelers are adjusting their plans this year

Eighty-three percent of holiday travelers are changing something about their plans this holiday season, due to inflation/rising prices.

Inflation won’t only impact Americans’ gift-giving this holiday season — it’ll also affect their travel plans. Holiday travelers will travel for fewer days (32%); select less expensive accommodations and/or destinations (30%); or drive, instead of fly, to their destination (28%).

Holiday travelers also said they would engage in cheaper activities (25%); fly instead of drive to their destination (23%); take fewer trips overall (23%); use rewards points, miles or loyalty programs (23%); or travel a shorter distance (21%).

“Despite economic worries, people are still traveling — this is on pace to be a record year for TSA passenger screenings. But they’re traveling differently,” Bankrate Senior Industry Analyst Ted Rossman says. “They don’t want to skip the trip entirely, but they’re willing to make adjustments that lower the cost.”

Americans commonly lose money in a gift card misstep

Key findings from Bankrate's Gift Cards Survey

If you’re looking for more frugal ways to save money this holiday season, consider rifling through your drawers for old gift cards — 43% of Americans have at least one gift card, gift voucher or store credit they haven’t used.

Forgetting about those cards can mean losing money: 34% of Americans have lost money through a gift card misstep, such as letting it expire (20%), losing the card (17%) or experiencing the store going out of business before they could use the gift card (12%).

“Gift cards represent real money,” Rossman says. “It’s disappointing that the amount of unused value continues to grow. Stores such as Walmart and Starbucks have more than $1 billion in unused gift cards on their books.”

The average amount in unused gift cards, gift vouchers or store credit is $244 per person.

Retail credit card interest rates have soared

When shopping for the holidays this year, you might be pressured to take out a retail credit card at the register. However, consider those offers carefully, because the average interest rate for retail cards is 30.45%, a record high, according to Bankrate’s September 2024 Retail Credit Card Survey.

To conduct the survey, Bankrate examined 108 retail credit cards using publicly available terms-and-conditions disclosures. Bankrate’s final list included each of the 100 largest retailers in the country that offer credit card programs, including co-branded and store-only cards.

Average retail credit card interest rates have risen sharply in past years in part because they’re based on the Federal Reserve’s prime rate, which grew between 2022 and September 2024. (The Fed cut its target interest rate for the first time in two years in September 2024.) In 2021, before the Fed began raising its target interest rate, the average retail credit card interest rate was 24.35%. It rose to 26.72% in 2022, then to 28.93% in 2023:

That means if you take out a retail credit card and carry a balance on it, thereby accruing interest, your holiday purchases will be much more expensive than they were only a few years ago.

“Don’t fall into a trap and apply for one of these impulsively at the checkout counter. It’s fine to say ‘no’ or ‘not right now’ or ‘I’m going to think about it,’” Rossman says. “The retailer may dangle 10% off today’s purchase if you sign up, but that’s not worth it if you’re going to pay a 30% interest rate for years to come.”

The bottom line

Whether you’re buying a treat for yourself or loading up on gifts for the family, it’s always possible to intentionally manage your holiday spending. To stay on track, Rossman advises budgeting for any potential impulse purchases ahead of time.

“If you’ve set money aside for it, you have more freedom to spend without overdoing it or taking on expensive credit card debt,” Rossman says.

If you need help avoiding impulse buying, you can also consider:

—Setting limits ahead of time, such as waiting 24 hours before making an unplanned purchase.

—Unlinking your credit and debit cards to your phone and computer to make it harder to impulse buy.

—Setting an “impulse spending budget” in the months leading up to the winter holidays. For example, by setting a budget of $100 a month, you’ll be able to grab the perfect gift when you spot it on sale while still keeping your spending down during this expensive time of year.

To save money during the holidays, Rossman also recommends a few other strategies:

—Talk ahead of time with family and friends about buying fewer gifts.

—Give homemade gifts.

—Do holiday activities at home, such as family movie nights, home-cooked dinners or attending local events.

©2024 Bankrate.com. Distributed by Tribune Content Agency, LLC.