2024 Holiday Spending Report

NerdWallet’s annual holiday shopping and travel survey shows that spending is up for both categories this year, but some are still paying off their debt from last year’s holiday expenses.
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Published · 9 min read
Profile photo of Erin El Issa
Written by Erin El Issa
Senior Writer
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Edited by Elizabeth Renter
Senior Economist

The holiday season is nearly here and with it, ample opportunity to spend big. According to a new NerdWallet analysis, Americans plan to spend about $17 billion more on gifts and about $46 billion more on flights and hotels this holiday season than they did last year.

A survey of more than 2,000 U.S. adults, commissioned by NerdWallet and conducted online by The Harris Poll, asked Americans about their holiday shopping and travel plans. We also asked them about actions they’re taking to save money this holiday season.

According to the survey, more than 4 in 5 Americans (83%) plan to purchase gifts for friends and loved ones this holiday season — we’ll refer to them as “holiday shoppers” throughout this report — spending $925, on average. That’s more than 217 million Americans spending over $201 billion. This is quite a bit higher than the 2023 Holiday Shopping Report, where we calculated total gift spending of more than $184 billion.

Travel spending is up as well. The survey found nearly half of Americans (49%) plan to spend money on flights and hotel stays during the 2024 holiday season — we’ll refer to them as “holiday travelers” throughout this report — spending $2,330, on average, for these expenses. That’s more than 128 million Americans spending nearly $300 billion on these travel costs, compared to $254 billion on the 2023 Holiday Travel Report.

Key findings

  • Some shoppers, travelers are still in debt from last year: The survey found that nearly 3 in 10 Americans who used credit cards to pay for holiday gifts last year (28%) still haven’t paid off their balances. Likewise, the same proportion (28%) of 2023 holiday travelers who put flights and hotel stays on a credit card still haven’t paid off the balances.

  • Holiday giving may cause shoppers stress, possibly in the name of showing they care: More than half of 2024 holiday shoppers (55%) say the costs associated with holiday spending stress them out. But 32% of shoppers think it’s important to purchase holiday gifts and experiences, despite the costs, to show others love.

  • Gift giving could harm financial stability: Of 2024 holiday shoppers, 10% say they’ll likely need to use some of their emergency savings to buy holiday gifts this year and 9% say they’ll prioritize gift buying over paying some of their regular bills — like debt payments or utilities — this holiday season.

  • Some travelers prize plans despite costs: More than 2 in 5 holiday travelers (42%) say they’ll keep their usual holiday travel plans this year, regardless of expense.

“While celebrating the season is a top priority for many Americans, going overboard can cause stress for months afterward, so it’s worth planning ahead to reduce costs where possible,” says Kimberly Palmer, personal finance expert at NerdWallet. “Taking time to compare prices, using savings instead of debt to finance purchases and being flexible with travel plans are among the ways people can take control of their holiday spending,” she adds.

Holiday shopping

Last year’s debt

Some holiday shoppers may be going into the gift-buying season with lingering debt from last year. Of Americans who put 2023 holiday gift purchases on a credit card, less than a third (31%) paid it off with the first statement. This means that up to 69% of Americans who used credit cards to buy gifts last year may have paid interest on these purchases. Some are still likely paying interest — 28% of 2023 holiday shoppers who used a credit card still haven’t paid off their balances.

Savvy shopping strategy: Pay off last year’s debt and make a budget for this year

As of May 2024, the average credit card interest rate on accounts assessing interest is 22.76%, according to the Federal Reserve Bank of St. Louis. This means that for every $1,000 you’re carrying on a credit card, it’s costing you around $228 a year in interest.

If you still have debt from last year’s holiday season, make a plan to pay it off as soon as possible. And think about how much you can reasonably spend on 2024 holiday shopping without carrying a credit card balance into the new year.

According to the survey, 27% of 2024 holiday shoppers have a strict budget for the amount they will spend on gifts this year. Creating a budget before the sales start is a smart move to keep your spending in check.

“Setting aside savings for holiday expenses as early as possible in the year can make it easier to build up more of a cushion before these seasonal expenses hit,” Palmer says. “Estimating the total amount you plan to spend and then sticking to it as you shop and plan travel can also help avoid surprises later.”

Payment methods

Most shoppers plan to use credit cards again for this year’s holiday shopping: Nearly three-quarters of 2024 holiday shoppers (74%) say they’ll put at least some of their holiday gift purchases on a credit card. On average, they plan to charge $723 for these gift purchases.

Other popular payment methods for gift buying include cash (65%) and using money from savings (28%).

Credit cards, when not paid in full by the due date, can be a pricey way to finance gift purchases. But those shopping with payday loans (7%) may be hit with even higher costs in the form of fees that equate to triple-digit interest rates.

Savvy shopping strategy: Avoid letting holiday shopping hurt your finances

Holiday gift giving may be a fun annual tradition, but it’s not worth putting your financial health at risk. According to the survey, 10% of 2024 holiday shoppers will likely need to use some of their emergency savings to buy holiday gifts this year and 9% will prioritize gift buying over paying some of their regular bills this holiday season. Consider decreasing your shopping budget if you’d otherwise have to take on expensive debt, spend down your nest egg or forgo bill payments to pay for gifts. These actions could be costly, which may taint the joy of the season.

Holiday shopping plans

Many 2024 holiday shoppers plan to shop the sales, with 39% saying they plan to shop on Black Friday and 36% planning to shop on Cyber Monday this year. And around 1 in 7 (15%) have completed or will complete the majority of their holiday gift shopping during the mid-summer and fall sales.

Some will shop locally: Of 2024 holiday shoppers, 16% plan to shop on Small Business Saturday and the same proportion (16%) say they’ll prioritize shopping at locally-owned or small businesses this year.

Cutting back on gifting is on the agenda for some shoppers: Of 2024 holiday shoppers, 28% say they’ll spend less per person on gifts this year and 27% say they’ll purchase gifts for fewer people this year compared with years past.

Finally, some shoppers likely don’t even have gift buying on their radar yet: 14% of 2024 holiday shoppers say they traditionally shop for gifts at the last minute, or within days of a gift exchange.

Savvy shopping strategy: Look for ways to save

In addition to shopping the big sales — such as Black Friday or Cyber Monday — there are other ways to save on gift buying this upcoming holiday season. According to the survey, 32% of 2024 holiday shoppers plan their purchases in advance so they can monitor them continuously for sales before purchasing, and 23% use coupon or cashback sites or apps when making holiday gift purchases. Other 2024 shoppers may be avoiding buying all new gifts by regifting (11%) and purchasing some gifts secondhand this year (12%).

“Smart shopping is all about planning ahead so you have time to compare prices and wait for the right discount to make your purchase. It’s easier to overspend when you feel rushed, so making your shopping list early is a good strategy,” Palmer says.

Holiday shopping feelings

Nearly three-quarters of 2024 holiday shoppers (73%) say the holiday season is their favorite time of year, which may be leading some to overextend themselves. More than half of 2024 holiday shoppers (55%) say the costs associated with holiday spending stress them out and 40% say they feel pressure to spend more money on holiday gifts than they’re comfortable spending. Still, 32% of 2024 holiday shoppers think it’s important to purchase holiday gifts and experiences, despite the costs, to show others love.

Savvy shopping strategy: Set boundaries with loved ones

According to the survey, 22% of 2024 holiday shoppers have discussed or plan to discuss limiting holiday gift spending this year with their friends and family members. Stretching your finances due to a sense of obligation or tradition could be a cue to reevaluate your shopping plans.

“If you don’t have enough savings to buy gifts for everyone on your list this year, it might be a good time to talk about scaling back or opting for a more limited gift exchange. Giving a homemade gift or a coupon for an activity together are also popular options that don’t strain the budget,” Palmer says.

You might be pleasantly surprised at your friends’ and family members’ willingness to scale back. Around a third of Americans (33%) say they’d rather have an experience with their loved ones instead of exchanging gifts during the holiday season and 23% would prefer to receive fewer gifts this upcoming holiday season than they typically get. Gift giving can be expensive and stressful, and if you’re feeling that way, it’s possible your loved ones can relate.

Holiday travel

Last year’s debt and this year’s credit card usage

Similar to holiday shoppers, 28% of 2023 holiday travelers who put flights or hotel stays on a credit card still haven’t paid off these balances. Less than a third of those who used credit cards for 2023 holiday travel (31%) paid it off with the first statement.

As for this year, nearly three-quarters of 2024 holiday travelers (72%) plan to put some or all of their holiday flight and hotel expenses on a credit card. And 15% of holiday travelers say they applied for a new credit card to get a signup bonus to help pay for 2024 holiday travel expenses.

Thrifty travel tips: Pay off last year’s debt & take steps to save on this year’s travel

According to the survey, more than a quarter of 2024 holiday travelers (28%) are reducing their everyday spending in order to save money to pay for holiday travel expenses this year and 24% plan to spend less on holiday gifts this year in order to save money for 2024 holiday travel expenses. These are also good strategies to free up cash to put toward any lingering debt from last year’s holiday travel.

Getting a new travel card for a signup bonus can be a smart idea to help reduce the cost of holiday travel, provided you pay off the balance each month. Otherwise, interest payments will eventually outweigh any rewards you earn.

“As with gifts, planning ahead can make it easier to leverage credit card rewards because you generally need several months to accrue the rewards before you use them. Staying flexible on your exact dates and destination can also help you find lower cost options,” Palmer says.

Holiday travel plans

Travel can get pricey, especially at peak times like the holiday season. Still, 42% of 2024 holiday travelers say they’ll keep their usual holiday travel plans this year, regardless of expense. For some, it’s a holiday priority: 28% of 2024 holiday travelers say that traveling over the holiday season is more important to them than the giving and receiving of gifts.

Thrifty travel tip: Start saving for next year’s holiday travel

It’s fine to prioritize holiday travel, as long as you can afford it. Once this holiday season ends, start making plans for next year. This could mean setting aside money every month throughout the year, saving an upcoming windfall or strategically accruing credit card rewards to bring down the cost of holiday travel in 2025.

“If you end the holiday season with more debt and financial stress than you would have liked, consider making a plan for next year now. It’s never too early to start building up a holiday fund, and doing so can help you look forward to the season all year long,” Palmer says.

Methodology

This survey was conducted online within the United States by The Harris Poll on behalf of NerdWallet from Sept. 10-12, 2024, among 2,079 U.S. adults ages 18 and older, among whom 1,735 plan to purchase gifts this holiday season and 914 plan to spend money on flights/hotels during the 2024 holiday season. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +/- 2.5 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact press@nerdwallet.com.

We used U.S. Census population estimates and survey responses to calculate the total number of Americans who plan to buy gifts this holiday season and total gift spending, as well as the total number of Americans who plan to pay for flights or hotel stays this holiday season and total travel spending.

Disclaimer

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