#United States #Columbus #Holiday Gifts #Economic Survey #American Spending

Holiday Spending Trends Among Americans

As the holiday season draws near, a sense of mixed emotions fills the air among American consumers. According to a recent survey conducted by Nationwide, while more than half of Americans (55%) express confidence in their personal financial situations, a significant number are opting for a more cautious approach this holiday season.

Spending Cuts and Consumer Behavior

The survey reveals that two in five Americans (42%) are planning to reduce their holiday spending compared to the previous year. Among those reducing their expenditures, nearly half (49%) admit that they will be buying fewer gifts. Additionally, over a third (38%) are expected to choose cheaper gift alternatives, and one in five (20%) have decided against gift buying altogether.

This trend of cost-cutting extends beyond the holiday season. Since the beginning of 2025, many consumers have reported changes in their purchasing habits: 47% say they are engaging in fewer impulse buys, while 41% are avoiding luxury purchases. Interestingly, 32% have turned to buying used or secondhand items instead of new products.

Delayed Major Purchases

The caution exercised by consumers is reflected in larger financial decisions. An alarming 48% have postponed or canceled vacations, while 46% have either delayed or scrapped plans to purchase a new vehicle. Furthermore, many Americans are postponing major life events, such as having a baby (21%), weddings (19%), and retirement plans (17%).

Increasing Reliance on Debt

While many Americans express confidence about their financial security, a growing reliance on debt adds a layer of concern. A notable 20% of Americans report having borrowed more than they did the previous year. Among this group, 61% are currently carrying credit card balances, 23% have taken out personal loans, and 17% have withdrawn from their retirement plans.

Kathy Bostjancic, Chief Economist at Nationwide, emphasizes this disconnect between sentiment and behavior: "Even though many Americans say they feel financially stable today, the way they're behaving tells a different story. This year has seen a lot of mixed signals, with some improvement in wages on one hand but weak job growth, continued inflationary pressures, and geopolitical concerns on the other. As a result, consumers are proceeding with caution because they are unsure just how firm their financial footing will be in the near future."

Economic Outlook for 2026

Despite a sense of security in their financial situations, many Americans are wary about the future. Over one-third (35%) fear that economic conditions will worsen in 2026. Among those who are pessimistic, 78% cite rising inflation as a primary concern, while 71% mention global trade tensions and tariffs. Furthermore, 25% believe that the stock market is either overvalued or in a bubble, which amplifies their worries about financial stability.

This growing apprehension influences their financial priorities going into the new year. A significant number anticipate difficulties with key goals such as managing healthcare expenses (43%), reducing debt (39%), saving for retirement (34%), and shielding their investments from market fluctuations (31%).

Importance of Professional Financial Advice

As financial anxieties mount, surprisingly few individuals seek professional guidance. Only 25% of those surveyed currently work with a financial advisor. However, among those who do, nearly half (48%) regard their advisor as their most trusted financial source, providing support that is crucial during uncertain times.

Kevin Jestice, president of Nationwide Retirement Solutions, urges consumers to consider professional support: "A trusted financial professional can help people step back from immediate worries and take a long view—whether that means finding savings today or creating a strategy to stay on track for retirement. Many workplace retirement programs also offer valuable educational resources to participants."

Insurance Needs and Consumer Trust

In light of financial instability, consumers often turn to trusted advice regarding their insurance requirements. According to the survey, 46% of consumers rely on insurance agents for information on products, positioning them as the most trusted source—far exceeding friends, family, or even digital tools like social media and AI. More than half (56%) of respondents shy away from using AI for guidance on home or auto insurance, indicating a lack of trust in technology for complex financial decisions.

Casey Kempton, Nationwide's President of Personal Lines, notes this trend: "When people are feeling uncertain about their finances, they're looking for clarity and control wherever they can find it. Independent agents shine in this regard because they are the most trusted sources. A simple policy review can help clients understand their coverage and make adjustments that align with their current financial situation."

In summary, the 2025 Nationwide Economic Impact Survey provides a compelling insight into the evolving financial landscape in America. As individuals navigate a year filled with uncertainties, those who are proactive in seeking guidance and reassessing their financial approaches may find themselves better positioned for confidence in the long run.