This year, nearly half of Americans who plan to buy holiday gifts, travel, or go out to celebrate say they expect to take on debt to do it, and many are still carrying balances from last season, according to a 2025 holiday spending survey from the American Institute of CPAs (AICPA). At the same time, total holiday sales are expected to cross the one‑trillion‑dollar mark once you add up all the ways we celebrate, based on this year’s forecast from the National Retail Federation (NRF).

The problem: The Holiday hangover on your credit card statement

The AICPA survey finds that nearly half of shoppers expect to rely on some form of debt to get through the season, and many say they regret how much they spend once the bills arrive.  For young professionals, that holiday debt usually sits on top of rent, student loans, and everything else competing for cash flow. Higher‑earning households are not immune. Many also report using credit to keep up with holiday expectations.

Budgeting: Pick your total holiday number

Most people build a holiday budget from the bottom up: they write a gift list, add travel, remember a few parties, and hope it all works out. A better approach is top‑down: decide on one total number first, then divide it.

Start with:

“How much can I spend on the entire holiday season without touching my emergency fund or increasing my debt?”

That number should reflect reality after housing, groceries, existing debt payments, and savings goals, not what retailers, friends, or family are doing.

PricewaterhouseCoopers (PwC)’s 2025 Holiday Outlook suggests that many households will end up spending around 1,500 dollars in total once gifts, travel, entertaining, and going out are included, with households that have children planning to spend almost twice as much as those without kids. If you have kids, a higher baseline is normal, which makes choosing your number up front even more important.

Once you have your number, break it into buckets that match your life:

• Gifts (family, friends, coworkers)
  
• Travel (flights, gas, lodging, rideshares)
  
• Food and hosting (groceries, special meals, potlucks)
  
• Going out and experiences (parties, holiday outfits, concerts, New Year’s plans)
  
  

If it only happens because of the holidays, it belongs in this number. Even a rough split (for example, 40% gifts, 30% travel, 20% food, 10% going out) forces trade‑off questions before you spend, not after.

Have a plan instead of just willpower

By December, most people are juggling work, family, and social invitations. This is not the time to rely on self‑control. Behavioral research shows that people overspend in busy, emotional situations unless they have simple guardrails.

Practical systems that help:

• Separate spending account: Move your holiday budget into its own checking account or prepaid card. When the balance hits zero, you are done for the season.
  
• Monitor your spend in one place: Track purchases in a notes app, spreadsheet, or budgeting app and update it the same day you buy.
  
• Rewards with a backstop: If you use credit cards for rewards, pair them with an already funded holiday savings bucket and plan to pay the statement in full, instead of letting balances linger into the new year.

Boundaries: protecting your finances and your relationships

Emotional pressure is a big reason people overspend. Many say they would take on more debt if that’s what it takes to make loved ones happy, and more than half of holiday shoppers report that the costs of the season stress them out. Early career professionals often feel pulled between being financially responsible and showing up generously for family and friends.

Simple boundaries can ease that tension:

• Suggest a name‑draw so each person buys for one person instead of everyone.
  
• Propose a shared spending cap so the exchange works for everyone.
  
• Be honest about what you can afford. True friends will understand.

In a year when national surveys show high spending and high stress, you are rarely the only one hoping for a more reasonable approach.

Meaning over money: gifts that do not require debt

Most people do not remember the exact price of last year’s gifts (or even what they were). They remember experiences and how they felt. Families with children drive a disproportionate share of holiday spending, which can ratchet up the pressure to say yes to every tradition, event, and wish list item.

Meaning does not have to track with money. A few ideas:

• Memory‑based gifts:  A personalized photo book curated just for them.
  
• Support and relief gifts: A night of childcare or pet care, or help with house projects that keep getting pushed to the bottom of the list.
  
• Growth and wellness gifts: Cover a yoga or cooking class they have talked about, or give the gift of time — a quiet afternoon while you watch the kids.
  

Looking ahead: make next year easier

You may be working within the budget you have right now, but this season can be used as a benchmark for next year. Once the holidays are over, take time to add up what you actually spent on gifts, travel, food, and going out. Use this as a reference point for next year’s plan.

From there, treat holiday spending like an annual bill. For example, if you want to spend around 1,000 dollars next year, setting aside under 90 dollars a month into a “Holidays & Gifts” bucket spreads the cost across the year instead of concentrating it in December.

Closing thought: give yourself the gift of a plan

If the holidays highlight your stress around money, you are not alone, especially if you are not sure where you actually stand. A clear financial plan can turn that background stress into concrete next steps.

At Pillar Point Wealth Management, our focus is simple: financial plans that support life plans. If you want next year’s holidays to feel different from this one, consider giving yourself the gift of a financial plan to start the new year. We’re here to help clarify where you stand today and build a path that aligns your spending, holidays included, with the life you are working so hard to build.