Survey Reveals The Essential Things People Are Going Without Just So They Can Buy Gifts For The Holidays
Many people are struggling to afford gifts for their loved ones this holiday season.
StockLite | Shutterstock With the holiday season approaching, many people are gearing up for holiday shopping. With rising prices on virtually everything and many people struggling to afford basic necessities like housing, groceries, and bills, most Americans are being forced to make sacrifices so they can at least have a semi-enjoyable holiday season.
According to a survey of 2,000 adults conducted by Talker Research on behalf of Beyond Finance, approximately 65% of adults say it’s "nearly impossible" to know how much they can safely spend. There's definitely a battle between not wanting to overspend and wanting to be generous with gifts to loved ones.
The survey found that people are scrimping on food, both groceries and eating out, just so they can buy gifts for the holidays.
The survey found that the 2025 holiday season is going to be a tough one for many Americans. Thanks to the cost of living and economic instability, respondents admitted that they're cutting back on certain expenses.
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An estimated 25% of those surveyed said they haven't been eating out, and 19% aren't even buying groceries just to have some money to put towards gifts. On top of that, at least 21% are actively putting money into their savings. Those are savings simply reserved for holiday spending.
Most Americans have already spent beyond their target budget for the holidays.
The study found that only half of people (51%) have created a holiday budget this season, and of those, most (64%) have already overspent, or anticipate overspending. At least 54% of people are putting their holiday expenses on credit cards, 21% are using savings, and 20% are using buy now, pay later plans.
"People don’t set out to overspend during the holidays. They want to connect, to make others happy, to participate," explained Lou Antonelli, chief operating officer at Beyond Finance. "But that generosity often turns into guilt and regret. We believe financial and emotional wellness can go hand in hand, and empower consumers to make choices rooted in peace, not pressure, so the holidays can be about meaning — not money."
Adding to the struggle is the fact that a majority of people are "guilt-giving" this year. An estimated 52% of Americans have already bought or anticipate buying at least one gift for someone out of a sense of obligation. On average, people are expected to spend $250 on these "guilt gifts."
Experts recommend spending somewhere between 1% and 2% of your annual income on holiday gifts.
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"For most households, this creates a reasonable range that keeps generosity aligned with long-term financial health," said Jon Lapp, a certified financial planner, in a statement to CNBC Make It. Lapp also encouraged people to put 10% to 20% of their discretionary spending toward gifts this year.
That's based on a budget that follows the 50/30/20 budgeting method, where 30% of your total income goes toward discretionary purchases. But what's more important is knowing what your budget is and sticking to it. Not all gifts given this holiday season have to break the bank. It can be an opportunity to get creative.
There's also nothing wrong with just saying no. You shouldn't buy someone a gift just because you feel you have to, especially if your finances don't allow it. If financial stability is important to you, it's more than okay to just take a step back from buying this year. Your loved ones will understand.
Nia Tipton is a staff writer with a bachelor’s degree in creative writing and journalism who covers news and lifestyle topics that focus on psychology, relationships, and the human experience.
