How You’ll Spend Money This Holiday Season — And How to Stay Smart About It - Explore Gwinnett's Best in Business, AI & Tech News 2025

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How Will You Spend Money? As the holidays approach, you can almost feel the energy building — twinkling lights, wish lists, and endless sales popping up online. But before you pull out your wallet, it’s worth taking a closer look at what economists are saying about holiday spending this year — and how you can protect your finances while still enjoying the season.

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What Economists Expect This Holiday Season

Spending will grow, but more slowly

Experts predict that people will spend more this holiday season, but not by much. According to Deloitte’s 2025 Holiday Retail Forecast, retail sales are expected to rise between 2.9% and 3.4% from November through January. That’s growth, but slower than in past years.

In-store sales are expected to climb modestly, while online sales could jump as much as 7% to 9%, showing that shoppers still prefer convenience — and often better deals — online.

People are being more cautious

Even though people plan to spend, many are tightening their belts. Rising prices, interest rates, and general uncertainty about the economy are making consumers more careful. Surveys show that many households expect to cut back slightly on gifts, travel, and entertainment, focusing more on needs than wants.

In other words, you’re not alone if you’re feeling a little cautious this year. Families everywhere are thinking twice before swiping their cards.

Smaller splurges, more meaning

The trend this season isn’t about how much you buy — it’s about buying smarter. People are choosing fewer, more meaningful gifts. Experiences, practical items, and thoughtful gestures are taking the place of over-the-top shopping sprees.

Gift cards are also popular because they offer flexibility. If you’re not sure what to give, a gift card lets the recipient decide — and helps you stay on budget.

Online continues to dominate

Online shopping remains king, and this year will likely be no different. The combination of convenience, fast shipping, and deals means more people are scrolling for sales instead of waiting in line. Retailers know this, so expect to see digital discounts and free-shipping offers earlier in the season.

What You Should Do With Your Money This Holiday Season

Now that you know what’s happening in the economy, let’s talk about what you can do about it. You don’t need to cancel your holiday fun — you just need a plan.

Here are eight simple moves to help you spend wisely and stay financially confident through the season.

1. Start with a clear budget

Decide how much you can truly afford to spend — and stick to it. Add up the big categories: gifts, food, travel, and entertainment.
Once you have that number, divide it into smaller amounts for each area. This keeps you from overspending in one place and scrambling later.

Tip: If your total feels too high, cut back now — before the spending starts.

2. Prioritize what matters most

Think about what’s most meaningful to you this year. Maybe it’s a special dinner with family, a trip to visit loved ones, or one perfect gift for someone special.
Spend first on what matters most, not on what’s easiest or on sale. That mindset alone can save you hundreds of dollars.

3. Shop early and smart

Start early so you have time to compare prices and catch deals before items sell out. Use deal-tracking websites or apps that alert you when prices drop.
Shopping early also helps you avoid the last-minute rush — and the impulse buys that come with it.

4. Avoid the credit trap

Holiday debt is real — and it can linger long after the decorations come down. Try to pay in cash or use your debit card.
If you do use a credit card, set a spending limit for yourself and make a plan to pay off the balance in full when the bill arrives.

Avoid “buy now, pay later” services unless you’re sure you can make each payment on time. They may seem helpful, but they can turn small purchases into ongoing debt.

5. Be honest about extras

The holidays can make you feel like you have to say yes to every party, every gift exchange, and every shiny new decoration. But the truth is, you don’t.
Say yes to what brings joy, and skip what adds stress. You’ll enjoy the season more — and your bank account will thank you.

If you love giving gifts, think creatively. Homemade treats, personalized playlists, or even a heartfelt note can mean more than expensive gadgets.

6. Keep your emergency fund intact

Don’t dip into savings or emergency money for holiday spending. That safety net exists for real emergencies — not holiday impulse buys.
Instead, work with the money you already have set aside. If you have a little left after bills and necessities, use that for holiday spending.

If you don’t have an emergency fund yet, consider starting one in January. Even $25 a week adds up fast.

7. Track what you spend

Write it down. Every purchase. Every gift. Every receipt.
It sounds simple, but most people don’t track what they spend — and that’s how budgets fall apart. Keeping a running list helps you see what’s left in your plan so you can adjust before things get out of control.

You can use a spreadsheet, a note app, or a free budgeting tool — the key is staying aware.

8. Plan ahead for next year

When the season ends, look back at your spending. What worked? What didn’t?
Start a “holiday fund” in January and put a little aside each month. Even $50 a month gives you $600 by next Christmas — enough to shop stress-free next year.

Why It All Matters

The holidays should bring joy, not anxiety. But without a plan, it’s easy to let spending spiral. Economists are right — the economy is cooling, prices remain high, and households are under more pressure than before.

That’s why staying disciplined this year is so important. A thoughtful approach to money lets you enjoy the holidays without dragging stress into the new year.

When you plan your spending, you create space for what the season is really about — connection, kindness, and gratitude — not debt or regret.

So take a breath, make a list, and focus on what truly matters. Because the best gift you can give yourself this year is financial peace of mind.