Bankrate's 2025 Holiday Spending Insights

Early Holiday Shopping Trends and Consumer Behavior

Loren Jerae, a 26-year-old stay-at-home mom in Charlotte, North Carolina, has already begun her Christmas shopping. She plans to visit thrift stores, online marketplaces, and clearance racks over the next few months to gather the perfect collection of gifts for her 5-year-old son. As a young mom, she says, “I didn’t want our finances to determine his holiday.” Since her son was born, she has always been budget-friendly.

When it comes to holiday shopping, Jerae is not alone. About half of holiday shoppers (49 percent) have already started or plan to begin shopping before October 31, according to the 2025 Early Holiday Shopping Survey. Jerae starts even earlier. She sets money aside during the first half of the year. By July, she takes advantage of summer clearance sales and back-to-school deals to snag some early Christmas gifts. By August, she’s tackling her entire shopping list for her son, fiancé, parents, and other friends and family.

Two out of five shoppers (41 percent) are concerned that holiday gifts will be more expensive this year, which may explain why they’re getting a head start. “I absolutely feel like [prices are] higher,” Jerae comments. A few years ago, she and her fiancé tried shopping the month before Christmas and ended up spending around $700 on “a bunch of junk.” She told herself she’d never do that again. “I am not spending that type of money on one or two items,” she says. By shopping early, “I can make $100 stretch, and we can get several things.”

Key Findings from the 2025 Early Holiday Shopping Survey

Around two out of five holiday shoppers expect higher price tags this year. 41% say they’re concerned winter holiday gifts will be more expensive this year. But only 24% will budget for holiday spending.

Roughly half of holiday shoppers will begin before the end of October. That includes 13% who started shopping or planned to in August, 11% in September and 25% in October.

Over half of Americans are prone to impulse holiday shopping. 54% said they’d made an unplanned or impulse purchase during the last holiday season, most commonly for family members (31%) or themselves (28%).

Concerns Over Rising Prices

Around two out of five holiday shoppers, especially boomers, fear high price tags this holiday season. Most U.S. adults (79 percent) plan to holiday shop this year. And around two out of five holiday shoppers (41 percent) say they’re concerned holiday gifts will be more expensive this year. However, only around one in four (27 percent) say they expect to spend more this year than last.

Notably, that concern over high prices is highest among boomers (46 percent, ages 61-79) and decreases with age. Forty percent of Gen Xers (ages 45-60), 39 percent of millennials (ages 29-44) and 37 percent of Gen Zers (ages 18-28) noted the same concern.

Concern about high holiday prices this year is also more prominent among middle-income households. Forty-nine percent of $80,000-$99,999 earners and 45 percent of $50,000-$79,999 earners say they’re concerned, versus 38 percent of both the highest and lowest earners ($100,000+ and under $50,000, respectively).

Ted Rossman, senior industry analyst at DISCOVER TRENDS, says the higher earners are easier to explain, as more disposable income allows for some wiggle room in the budget. But lower earners may have already tightened their holiday budgets after high inflation and interest rates in the last few years. It could still be a tough financial season — but they’ve adapted.

On the other hand, Rossman explains, middle earners may be newly disenchanted by higher prices and feel like their paychecks aren’t stretching as far as they used to.

The Impact of Inflation and Tariffs

Concern about high prices may be warranted. Inflation remains slightly above target at 2.7 percent, and tariffs could push prices higher. Money woes are top of mind for some holiday shoppers. More than one in three shoppers say inflation will change how they shop (36 percent), and more than one in four say holiday shopping will strain their budgets (29 percent) and are stressed about winter holiday shopping costs (27 percent). In fact, only 11 percent explicitly said they’re not concerned about the cost of winter holiday shopping.

Online Shopping and Payment Methods

More holiday shoppers will make their purchases online. Nearly two out of five shoppers (38 percent) intend to make most of their purchases online, versus one out of five (20 percent) who plan to make most of their purchases in person. Perhaps surprisingly, boomers are the most likely to make most of their purchases online (45 percent), compared to just 33 percent of Gen Zers.

Jerae, a Gen Zer, tends to shop more in person. “I’d rather just hit all the thrift stores in my area,” she explains. And roughly one out of six shoppers (16 percent) expect that gifts will be harder to find this year.

Spending Expectations and Debt

Around one out of four shoppers expect to spend more this holiday season. Twenty-seven percent of holiday shoppers expect to spend more this holiday season than they did last year, compared to 30 percent who expect to spend less. Forty-three percent expect to spend about the same.

There could be a couple of factors at play. First, those who plan to spend more may anticipate higher prices this year, Rossman explains. Or, they could simply be earning more income and feeling generous. Meanwhile, Rossman says those who plan to spend less might be more optimistic about prices this year. Or, they might be shortening their gift lists to save money.

Mixed Signals on Spending and Mental Health

More than two out of five Americans (43 percent) say money negatively affects their mental health, according to the 2025 Money and Mental Health Survey. But Morgan Stanley reports Americans’ spending was up 5.5 percent in Q1 2025 compared to the year before.

Notably, younger generations are more likely to anticipate spending more this season — 41 percent of Gen Zers and 33 percent of millennials expect to spend more compared to 17 percent of Gen Xers and 20 percent of boomers.

Payment Methods and Debt

More than one out of four shoppers plan to take on debt this season, but debit cards are the top pick for payment. Sixty-one percent of holiday shoppers expect to use debit cards for at least some of their purchases, avoiding debt but likely sacrificing rewards potential. Credit cards are the next most popular option, with 57 percent of shoppers planning to use them. Among those users, 35 percent plan to pay in full and 21 percent plan to carry balances over time.

Cash remains a popular option, with 49 percent planning to pay with cash. Buy now, pay later (BNPL) services (12 percent), checks (5 percent) and some other method (3 percent) round out the ways people plan to pay for their winter holiday shopping.

Gen Zers are the most likely to use debit cards (70 percent) and cash (55 percent). Boomers are the most likely to pay with credit cards (62 percent), and millennials are the most likely to use a BNPL service (17 percent).

After adjusting for overlap, more than one out of four shoppers (28 percent) may take on debt either with a credit card they will pay off over time or BNPL. But just 4 percent say they are “willing to take on debt” in another survey question — revealing a possible disconnect between what Americans say and what they do.

Early Shopping and Impulse Purchases

Nearly half of shoppers will start before Halloween. You’re not behind on holiday shopping yet, but nearly half of shoppers (49 percent) will have started or plan to start before the end of October. That includes 13 percent who started or planned to start by the end of August, another 11 percent in September and another 25 percent in October, leaving 37 percent who plan to start shopping in November and 14 percent in December.

Rossman thinks the early bird might get the worm. “While some consumers shake their heads that holiday shopping seems to start earlier each year, the early start gives you more time to spread out your cash flow and find the best deals,” he explains.

Impulse Shopping Trends

Half of Americans made an impulse purchase during the 2023 holiday season. Fifty-four percent of Americans said in the 2024 Holiday Impulse Purchases Survey they’d made an unplanned or impulse purchase during the 2023 holiday season. That includes nearly one in three Americans (31 percent) who made one for family members, 15 percent for friends and 5 percent each for acquaintances and someone else. And more than one in four (28 percent) made an unplanned/impulse purchase for themselves.

Gen Zers are the biggest impulse shoppers. Generally, younger Americans were more likely than older Americans to have made an unplanned/impulse purchase during the 2023 holiday season: Gen Zers: 70 percent, Millennials: 65 percent, Gen Xers: 50 percent, Baby boomers: 41 percent.

Younger Americans were also more likely than older generations to have made an unplanned/impulse purchase specifically for themselves: Gen Zers: 44 percent, Millennials: 39 percent, Gen Xers: 24 percent, Baby boomers: 12 percent.

Parents of young kids and higher earners are more likely to impulse shop. As for parental status, more than two-thirds (69 percent) of parents of children under the age of 18 made an unplanned/impulse purchase in the 2023 holiday season — compared to 48 percent of parents of adult children and 54 percent 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 percent, $50,000-$79,999: 61 percent, $80,000-$99,999: 65 percent, $100,000 per year or more: 62 percent.

Impulse shoppers often buy something just because it’s a good deal. A large portion of Americans were chasing deals in the 2023 holiday season. More than two out of five impulse shoppers (44 percent) did so 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 percent), wanted to treat themselves (29 percent) or the purchase was something they had previously considered buying (27 percent).

Social Media Influence on Shopping

Social media influences many younger Americans’ holiday shopping. More than one in five impulse shoppers (22 percent) were influenced by social media in some way: Influenced by posts from brands/advertisers: 13 percent, Influenced by posts from influencers: 10 percent, Influenced by posts from friends/family/acquaintances: 10 percent. A slim percentage (7 percent) 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 percent) to say they were inspired by social media to make an unplanned/impulse purchase, followed by millennials (31 percent), Gen Xers (14 percent) and baby boomers (6 percent).

Tips to Save Money This Holiday Season

You don’t have to go into debt to pay for the holidays. Instead, try these tips to be a smart shopper this season.

Set aside money ahead of time. Half of Americans are in credit card debt, and the holidays make it easy to spend more money than you have. Instead, try building a holiday fund before you start shopping. From January to July, Jerae puts between $30 and $50 weekly into a high-yield savings account that she’ll later use for Christmas gifts. Only around one in four holiday shoppers (24 percent) expect to budget for the holidays, but you can be one of them.

Start shopping early. The thought of buying gifts in July may sound like holiday creep, but it can actually lead to better deals and help you dodge the December mall frenzy. Take advantage of sales throughout the fall and compare prices without feeling rushed. You could have every item on your list checked off weeks before the holidays, leaving you more time to nosh on cookies and celebrate with your family.

Try secondhand shopping. Jerae found a play kitchen for $40 resale, well below the brand-new $100+ price tag. She says kids don’t know or care if a gift is secondhand — and she can find better prices for items with higher quality and more character.

Use a rewards credit card. You could earn cash back or points on your holiday purchases with one of the best rewards cards. And those rewards could go toward future gifts or a family vacation.

You can also combine money-saving methods. “Starting early and stacking discounts are strategies that shoppers can deploy to save money,” Rossman advises.

The bottom line is that many Americans are holiday shopping early this year, and possibly with good reason — they’re worried about rising prices and want more time to find the best deals. Just don’t fall prey to impulse shopping during those extra months. By sticking to a list and a budget, it really could be the most wonderful time of the year.