Let’s say you’re walking through the mall during the holiday season and pass 10 shoppers.

New Bankrate data shows that about three of those holiday shoppers (33 percent) plan to spend less on holiday shopping this year than they did last year. Between two and three of the shoppers (24 percent) plan to spend more, and around four shoppers (43 percent) plan to spend about the same.

Bankrate’s latest survey reveals that holiday shoppers this year may be feeling the burden of inflation, credit card debt and living paycheck to paycheck.

It seems that holiday shoppers will be more frugal this year, as multiple years of high inflation and high interest rates have taken a considerable toll.

– Ted Rossman Bankrate senior analyst

• Some holiday shoppers are spending less this holiday season. 33 percent expect to spend less in 2024 than in 2023. And 34 percent say inflation will change how they shop.
• Holiday shoppers feel the pressure of holiday shopping expenses. 28 percent say they’re stressed about the cost of holiday shopping, and 28 percent say it will strain their budget.
• Holiday shopping starts early. 48 percent of holiday shoppers will begin shopping in August, September or October.
• Debit cards lead the way as the preferred payment method. 58 percent plan to use a debit card to shop for holiday items like gifts and decorations.
• There might be a lot of debt under the tree this year. 27 percent plan to take on a form of debt for their holiday spending.

Amid inflation, only around 1 in 4 holiday shoppers plan to spend more this year

Although advertising tends to push more spending onto Americans, fewer than 1 in 4 holiday shoppers (24 percent) say they expect to spend more in 2024 than they did last year on things like gifts and decorations.

Conversely, 1 in 3 holiday shoppers (33 percent) expect to spend less this year. More than 2 in 5 (43 percent) expect to spend about the same.

This may be at least partially due to the economy. Thirty-four percent of holiday shoppers say inflation will change the way they shop. Things cost more than they did last year — leaving buyers with less purchasing power.

Younger generations and parents of young kids are more likely to ramp up spending

The data shows that 40 percent of Gen Z (ages 18-27) and 31 percent of millennial holiday shoppers (ages 28-43) expect to spend more this year, versus 19 percent of Gen Xers (ages 44-59) and 15 percent of baby boomer holiday shoppers (ages 60-78).

It’s possible that younger generations are earning more money, facing social obligations from peers or getting growing wish lists from kids, if they have them.

Speaking of kids — 31 percent of holiday shoppers with kids under 18 expect to spend more this year than they did last year. That’s compared to 17 percent of shoppers with kids 18 and over and 26 percent of non-parent shoppers.

This year, holiday shoppers seem more financially frazzled than ever.

• 28 percent of holiday shoppers are stressed about the cost of holiday shopping, up from 25 percent in 2023.
• 28 percent say holiday shopping will strain their budgets, up from 23 percent in 2023.
• 16 percent say they’ll feel pressured to spend more than they’re comfortable with, up from 13 percent in 2023.

Older generations are more likely to feel stretched thin during the holiday season. Thirty-four percent of Gen X holiday shoppers say it will place a strain on their budget, compared to 29 percent of millennials, 25 percent of boomers and 21 percent of Gen Z.

Still, some holiday shoppers are ready to take on the season. Twenty-nine percent say they’ll have money specifically set aside or budgeted, and 13 percent aren’t concerned about the cost of holiday shopping.

Nearly half of holiday shoppers will begin before Halloween

The rate at which stores start displaying supplies for the next holiday — looking at you, Halloween supplies in July — is a signal that holiday shoppers start early.

According to the new Bankrate survey, almost half of holiday shoppers (48 percent) plan to begin shopping before Halloween.

That’s 12 percent of holiday shoppers who began making their purchases by August 31, 13 percent planned to begin in September, 24 percent in October, 37 percent in November and 15 percent in December.

“While some people scoff that the holiday shopping season seems to start earlier every year, getting off to an early start gives you more time to comparison shop for the best deals and spread out the impact of your purchases,” says Ted Rossman, Bankrate senior analyst.

He suggests finding multiple ways to save. “Look to stack discounts. For example, combine a store promotion with a rewards credit card and an online shopping portal. That’s three ways to save on the same purchase,” Rossman says.

Holiday shoppers expect to pay with debit cards, with debt and online

Interestingly, debit card usage for holiday shopping is up from 2023. Fifty-eight percent of shoppers plan to use a debit card this year, versus 52 percent last year.

This could be because credit card interest rates are at record highs. But credit cards are the second most popular payment method for this year among 54 percent of shoppers. Forty-eight percent plan to use cash, and 11 percent plan to use a buy now, pay later service.

More than 1 in 4 shoppers (27 percent) plan to take on debt this season in the form of carrying a credit card balance or using a buy now, pay later service — an interesting contrast to the 7 percent who said they were willing to go into debt in a later question. Rossman points out that it might be a “do as I say, not as I do,” mentality.

While it might seem worth it to buy what you need now and pay for it later, keep in mind that any interest fees will raise the price tag on those items.

Finally, more than 2 in 5 shoppers (42 percent) expect to make most of their purchases online, versus only 23 percent who anticipate making most of their purchases in-person.

How to save money during the holidays — without feeling like Scrooge

‘Tis the season to avoid financial folly. Here are three ways to manage holiday spending without giving up the festivities altogether.

1. Start setting aside money early

By the end of the year, you might feel like there’s a hole in your pocket. You’ve just spent the last several months buying gifts, decorations and other holiday paraphernalia. But if you start saving up cash months before, you’ll have money to spend when the holidays roll around.

Only 29 percent of holiday shoppers have money specifically set aside or budgeted for holiday shopping. But those are the people who might be avoiding those credit card interest rates and balances through the roof.

Varying seasons of the year can get expensive, but there may be slower seasons, too. For example, if you’re not paying for child care while kids are in school or traveling less during a busy quarter at work, you could take the money you would’ve spent on those things and add it to a high-yield savings account, instead.

“With credit card rates near record highs, consider setting aside money from every paycheck between now and the end of the year to create a holiday shopping fund that keeps you out of credit card debt,” Rossman suggests.

2. Set expectations for gifts

If you have a large family or circle of friends, the cost of gifts can quickly get out of control. To spend less on gifts this year, it helps to set expectations early.

For instance, you might decide to give three gifts to your kids, all totaling under a certain amount. Maybe they’re even in certain categories — like a toy, a book and an experience. If your kids know this ahead of time, it might prevent some whining and disappointment the morning of a big holiday.

You can also set expectations with family and friends by agreeing on a price limit for gifts. And if you’d rather not exchange gifts, you can communicate that clearly.

3. Prioritize affordable experiences

There are plenty of memories you can make during the holidays that don’t revolve around money or gifts. Taking walks, baking cookies, looking at holiday lights and volunteering are all free or affordable activities.

Try sitting down with your family or friends to brainstorm ideas for ways you’ll spend time together this season. You might find these experiences to be more fun, less stressful and easier on your budget.

• Methodology

  Bankrate commissioned YouGov Plc to conduct the survey. All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2300 adults, including 1789 holiday shoppers. Fieldwork was undertaken between Aug 5-7, 2024.  The survey was carried out online. The figures have been weighted and are representative of all U.S. adults (aged 18+).