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AICPA Holiday Spending Survey: Budgeting and Debt Concerns

As the holiday season approaches, many Americans are feeling the pinch of economic uncertainty, leading to a mix of budgeting challenges and emotional spending. According to a new survey conducted by The Harris Poll for the American Institute of CPAs (AICPA), insights into holiday spending habits have unveiled some troubling trends.

The Budgeting Dilemma

The survey indicates that while a significant number of holiday shoppers attempt to create budgets, they remain skeptical about adhering to them. Only 25% of those intending to spend on gifts or travel report that they typically prepare a budget, and many acknowledge their tendencies to overspend. Notably, 33% of young adults aged 18 to 34 fall into this group, compared to just 16% of older adults aged 55 and up.

This year, 42% of Americans anticipate holiday expenditures exceeding $1,000 on items such as travel, gifts, and entertainment. Simultaneously, 36% of respondents are committed to spending less than they did last year. Amid rising costs and inflation, the struggle to maintain holiday joy while managing finances poses a significant challenge for many.

Anticipating Debt

The AICPA survey highlights that almost half (47%) of respondents planning to make holiday purchases expect to incur debt. Men appear to carry a heavier burden, with 52% of male shoppers anticipating holiday debt compared to 42% of females.

An overwhelming 79% of consumers in this group plan to utilize credit cards for their purchases. Alarmingly, over 52% of them do not foresee being able to pay off their holiday spending when the bills come due. In fact, 17% estimate that it could take more than six months to settle their balances.

By age group, 64% of consumers aged 18-34 expect to be in debt this season, with the figure dwindling to 23% for those aged 65 and older. This generational gap indicates that younger individuals are under more financial strain than their older counterparts.

The Regretful Spending Patterns

Among consumers planning holiday expenditures, a concerning 39% express feelings of regret over past overspending during the holiday season. AICPA’s expert Dan Snyder emphasized that emotional spending, if left unchecked, can result in significant financial strain as individuals chase festive cheer without a concrete plan.

Practical Steps for a Stress-Free Holiday Spending

In light of these findings, AICPA suggests several strategies for budgeting during the holiday season:
1. Define Your Gift List: Identify the people you need to buy for and set a spending limit for each ahead of time.
2. Track Your Progress: Keep a record of your spending to stay within your budget and adjust as necessary.
3. Utilize Rewards: Look into credit card points that may reduce travel costs.
4. Plan Ahead: Early bookings can often lead to better deals.
5. Pay Down Debt: Prioritize paying off credit card balances quickly to avoid accumulating interest.
6. Flexible Payment Plans: Consider using services like Klarna or Affirm for larger purchases if you're concerned about cash flow.

Despite the challenges, being proactive can help consumers celebrate the season without the burden of financial stress following New Year's Day.

Conclusion

The AICPA's survey sheds light on the precarious balance between holiday celebration and financial responsibility. As shoppers gear up for the festivities, implementing wise spending practices can alleviate some of the potential pitfalls of the holiday season. For those hoping to welcome the new year unencumbered by debt, prudent budgeting is crucial.

Survey Methodology: Conducted online from October 28 to 30, 2025, among 2,084 adults aged 18 and older, with a margin of error of +/- 2.5% at a confidence level of 95%.