2026 Holiday Spending: Americans Expect to Spend $1,654 – How to Avoid a January Money Hangover

The holiday season is approaching, and many American households are preparing for gifts, travel, celebrations and family gatherings. But festive spending can quickly become a financial headache when purchases are made without a clear plan.

A 2026 consumer survey estimates that shoppers plan to spend an average of $1,654 this holiday season, a 4% increase from the previous year. With prices still a concern for many households, planning ahead could make the difference between an enjoyable holiday and an expensive January.

Where Is the Holiday Money Going?

The survey estimates that average spending on retail goods will reach $988, while holiday activities and experiences will account for approximately $666.

Experiences are becoming an important part of holiday gifting. Half of surveyed shoppers plan to give an experience, such as a meal or activity, rather than relying entirely on traditional presents.

Online shopping is also expected to account for a significant share of retail budgets. This makes it easier to compare prices, but it can also encourage unplanned purchases when shoppers encounter repeated promotions.

Why a Holiday Budget Matters

The problem with holiday spending is not always the cost of one large purchase. Several small expenses can accumulate: decorations, delivery charges, meals, travel, gift exchanges and last-minute shopping.

Using credit cards for every purchase can make the total difficult to track. If the balance is not paid in full, interest charges can turn a festive shopping season into a longer-term financial burden.

Five Steps to Build a Holiday Spending Plan

1. Decide Your Total Spending Limit

Start with the amount you can comfortably afford after essential bills, savings contributions and debt payments. Do not treat the survey's $1,654 average as a spending target. Your budget should reflect your own income and financial situation.

2. Divide the Budget Into Categories

Create separate limits for gifts, travel, food, decorations and entertainment. This helps prevent one category from consuming money intended for another.

3. Make a Gift List Before Shopping

Write down the people you intend to buy gifts for and set a spending limit for each person. Consider thoughtful, useful gifts rather than choosing something simply because it is discounted.

4. Compare the Final Price

Check shipping fees, taxes, return conditions and delivery dates before completing an online purchase. A product advertised at a lower price may not be the cheapest option after additional charges.

5. Set a Credit Card Repayment Plan

If you use a credit card, know how the purchase will be repaid. Avoid carrying a balance simply to make the holiday budget appear larger than it really is. Pay attention to interest rates and promotional financing conditions.

Don't Let Discounts Decide Your Budget

Promotional events can create a sense of urgency. A limited-time offer may look attractive, but buying something unnecessary is still spending money.

One useful approach is to wait 24 hours before making non-essential purchases. If the item still fits your budget and your needs the following day, you can make a more informed decision.

Enjoy the Holidays Without Financial Stress

A memorable holiday does not require the biggest gift or the most expensive celebration. Spending time with family, sharing meals and creating meaningful experiences can matter more than the total amount spent.

The best holiday budget is one that allows you to enjoy the season while protecting your financial goals for the new year.

Have you started planning your holiday spending for 2026? What is your best tip for avoiding unnecessary expenses? Share it in the comments.