Holiday shopping: 54% tend to overspend during the holidays; 38% have gone into debt from gift shopping
The vast majority of Americans (91%) plan to shop for the holidays in 2025. But some risk overextending themselves financially. About 7% of those who intend to shop for gifts say they can’t afford to do so — but plan to anyway.
Of the 9% who don’t plan to shop, 78% say it’s because they can’t afford to buy gifts. The majority of non-shoppers blame living costs, such as groceries (49%), rent or mortgage payments (28%), and home or car insurance (17%).
Just as the holidays bring home security risks, they also present financial risks for shoppers who struggle to control their spending. Nearly three-quarters of Gen Z shoppers (74%) say they typically blow through their holiday budget, and 42% admit to maxing out a credit card due to holiday spending.
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About two-fifths of Americans (38%) say they’ve taken on debt as a result of holiday shopping, including 42% of millennials. In fact, about one-third of shoppers (31%) say they expect to take on debt this holiday season.
Other shoppers are aiming for a more measured approach. Aspirationally, a plurality of Americans want to cut back on their spending this year — 37% plan to spend less, 30% plan to spend more, and 33% plan to keep their spending close to last year’s holiday season.
Those figures vary by generation, with younger shoppers leaning toward spending more this season. About 47% of Gen Z and 45% of millennials aim to spend more on gifts this year compared to last year.
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Despite plans to increase their shopping activity, Gen Z is still catching up to other age groups in terms of total spending. Across all age groups, Americans expect to spend $667 on gifts in 2025.
In 2025:
Gen Z plans to spend $576.
Millennials plan to spend $708.
Gen X plans to spend $592.
Baby boomers plan to spend $709.
83% of shoppers plan to buy gifts from Amazon this holiday season
For the second year in a row, Americans are more likely to shop for holiday gifts at Amazon than at any other competitor. About 83% plan to buy from the delivery giant, up from 73% in last year’s survey.
Looking ahead, 68% plan to shop at Walmart, and 48% say they’ll shop at Target this year. Target faces ongoing boycotts related to a reduction in diversity initiatives. Insurify’s survey found that right-leaning Americans say they’re more likely to shop at Target this season than left-leaning Americans (52% vs. 45%).[5]
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As for payment methods, 70% of shoppers plan to use debit cards or cash for at least some of their holiday purchases, while 60% of shoppers plan to use their credit cards for some purchases. Gen Z is twice as likely as the average American to use buy-now-pay-later programs, such as Klarna or Affirm (40% vs. 18%).
Insurify also found that 36% of shoppers began buying holiday gifts before September. But an early start isn’t always a good thing. Those who have already begun shopping are nearly twice as likely to say they expect to take on debt this year due to holiday shopping (45% vs. 24%).