Holiday Budgets Are Rising. See How Your Spending Compares

Core Insights - Strong consumer demand is expected during the holiday season, with Americans planning to spend significantly more than in previous years, indicating resilience despite economic pressures [1][10] Spending Expectations - Shoppers anticipate an average spending of $2,800 this holiday season, which is an increase of over $1,000 from last year [2][8] - Millennials are projected to spend the most, averaging around $4,400, while Baby Boomers expect to spend the least at approximately $1,600 [2] Economic Context - Despite a decrease in inflation from its peak in summer 2022, prices have still risen by 3% year-over-year as of September, influenced by tariffs from the previous administration [3] - Over 62% of consumers reported changing their shopping habits due to uncertainty related to tariff-induced price increases [3][8] Shopping Strategies - Consumers are adopting smart shopping strategies to manage their budgets, such as seeking sales, purchasing clearance items, and opting for more affordable brands [4][8] - Black Friday is anticipated to attract a record number of shoppers, providing opportunities for consumers to find deals [5][10] Retail Sales Projections - Retail sales during the holiday season are expected to exceed $1 trillion, up from $976.1 billion in 2024, reflecting strong consumer demand despite ongoing cost pressures [8][10]