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Thrivent's 2025 Holiday Spending Survey

As the holiday season approaches, many Americans are approaching their financial plans with heightened caution. A recent survey by Thrivent, conducted by Ipsos, reveals that 71% of respondents anticipate inflation will adversely affect their holiday experience. Furthermore, a striking two-thirds of participants believe that tariffs will escalate holiday costs, adding to the general unease surrounding economic conditions.

A Focus on Financial Caution

The findings illustrate a shift in the attitude towards spending during the holidays, highlighting an increasing mindset geared towards financial prudence. About 50% of Americans expressed concerns over managing their finances effectively during the holiday season, a sentiment echoed notably by 58% of parents worried about their financial decisions.

As these financial anxieties grow, American families are anticipating cutbacks in multiple spending categories. Roughly 7 out of 10 respondents plan to reduce spending in at least one area, including:

• - Dining out (44%)
• - Gifts (32%)
• - Travel (28%)

The Impacts of Inflation and Tariffs

The primary drivers of financial concerns for the upcoming holiday season are linked closely to broader economic issues. 70% of survey participants cited inflation as a negative influence on their holiday spending plans, while 60% noted that tariffs are also affecting their budgets. The overwhelming cost-of-living increases play a significant role, with 64% acknowledging worries about rising prices and 32% admitting they live paycheck to paycheck, intensifying the stress surrounding holiday expenditures.

Women, parents, and particularly mothers, feel the strain more acutely. The data shows that 54% of women, compared to 46% of men, are anxious about their financial strategies during the holidays. Furthermore, a staggering 79% of mothers report plans to scale back their holiday spending due to financial pressures.

Coping with Holiday Spending Stress

Thrivent's financial advisors recommend strategies for navigating the complexities of holiday spending, focusing on alleviating the tension many families face. Sarah Hamlen, a financial advisor at Thrivent, emphasizes planning, valuing moments, and reimagining traditions as pivotal strategies to enhance financial wellness this season. Here are three practical tips she offers:

1. Make a Plan and Check it Twice: Developing a clear budget prior to shopping encourages financial confidence. Establish realistic spending amounts aligned to priorities, whether for gift-giving, family experiences, or maintaining a debt-free state.

2. Find Magic in Moments, Not Spending: Recognizing that the essence of the holidays isn’t solely found in material gifts can lead to a more fulfilling celebration. Families can create joyous memories through shared activities like baking, movie nights, or community volunteering.

3. Reimagine Traditions: It is important to adapt holiday practices to fit current financial realities. Trading extravagant traditions for community meals or setting spending caps can maintain the spirit of the season without inducing financial strain.

Generational Perspectives

A breakdown of feelings surrounding holiday spending across generations reveals that younger individuals tend to experience more stress than older generations. Only 28% of Baby Boomers express anxiety around holiday shopping, while substantially higher percentages of younger generations report heightened stress levels:

• - Gen Z: 39%
• - Millennials: 44%
• - Gen X: 44%

The comparison also indicates that Millennials perceive this year's challenges to be even more daunting than last year's (39% versus lower percentages among Gen Z, Gen X, and Baby Boomers).

In summary, as Americans brace for the upcoming holiday season, financial advisors recommend a proactive approach to spending. Thrivent's survey highlights the importance of balancing the joy of the holidays with financial responsibility, ensuring that holiday celebrations remain enjoyable and stress-free despite economic pressures.

For more insights and personalized advice, individuals are encouraged to consult financial advisors and explore strategies tailored to their unique circumstances. Thrivent aims to provide clients with the tools necessary to navigate the intricacies of holiday spending while prioritizing what truly matters: the spirit of the season.