Are people spending less this 2026 holiday season?
Many consumers plan to spend less on gifts this holiday season. Learn how to set expectations with family and enjoy meaningful celebrations on a smaller budget.
Key takeaways:
Understand changing spending habits. The 2026 Snap Finance Holiday Survey found 38% of consumers plan to lower their gift budget per person, while 21% plan to skip buying gifts for some people.
Talk with your family early. Agree on gift recipients, spending limits, and which holiday traditions matter most.
Explain changes clearly and kindly without feeling obligated to share private financial details.
Consider drawing names, setting spending limits, exchanging gifts only among children, or planning shared experiences instead of individual presents.
If you're thinking about buying fewer gifts, setting a lower spending limit, or changing how you swap presents with family, you're not alone. Holiday traditions often come with expectations, and changing your plans may feel uncomfortable when everyone is used to doing things a certain way.
The 2026 Snap Finance Holiday Study offers insight into how consumers plan to approach holiday spending this year, with some intending to spend less per person or skip gifts for certain people.
The good news? You don't have to share every detail of your finances to set reasonable expectations. A few honest conversations can help you and your loved ones agree on gift exchanges, adjust traditions, and focus on what makes the holidays special.
How are people managing their holiday budget?
According to Snap Finance's findings, 38% of surveyed consumers plan to set a lower budget per person, while 21% plan to not buy gifts for some people, reflecting two different approaches to managing holiday gift spending. Some shoppers plan to spend less on each recipient, while others want to reduce the number of recipients on their gift-buying list. Keep in mind that these choices can overlap.
Still, if your holiday plans look different this year, you're in good company. You might decide to spend less on individual presents, exchange gifts with fewer relatives, or avoid a traditional gift exchange altogether. Whatever you choose, consider who needs to know before shopping begins.
Talking about expectations early can prevent awkward surprises, especially if your family usually exchanges gifts with everyone or follows long-standing traditions.
How can you agree on holiday gift expectations with your partner?
If you’re buying gifts with another person, start by discussing your plans together. You may have different ideas about gift-giving based on your family traditions. Talk through three important questions:
Who are we buying gifts for? Decide whether you'll exchange gifts with extended family, friends, or a smaller group.
What's our spending limit? Agree on an amount that feels manageable.
Which traditions matter most? Identify the activities and exchanges you'd like to keep.
For example, one person might be used to buying gifts for every relative, while the other prefers drawing names. Find an arrangement that works for both of you, then communicate the plan consistently to your families.
How do you tell extended family you're spending less on gifts?
Bring up the change before relatives start shopping or sharing wish lists. Keep the conversation friendly, clear, and focused on your plans. You might say: "We're simplifying our holiday gift exchange this year and setting a smaller budget for presents. We'd still love to celebrate together, so let's figure out a plan that works for everyone."
You don't need to explain your financial circumstances. If you suggest a new group arrangement, give everyone a chance to agree before changing the tradition.
Some relatives may prefer to keep their usual spending habits. You can appreciate their generosity without matching every gift dollar for dollar. A sincere thank-you is enough when someone gives you a more expensive present than you expected.
How can you help children adjust to fewer holiday gifts?
Talk to kids about changes before they develop firm expectations about presents. Explain that your family is approaching gifts differently this year while reassuring them that you'll still celebrate together. Ask which gifts or activities matter most to them, and explain that a wish list doesn't guarantee they'll receive everything on it.
If children feel disappointed, acknowledge their feelings rather than dismissing them. Then talk about traditions they can still enjoy, such as baking cookies, watching holiday movies, playing games, or visiting local holiday light displays.
Keep adult financial worries off their shoulders. Kids need expectations and reassurance, not the responsibility of worrying about money.
What gift traditions work with a smaller budget?
You don't have to stop giving presents just because you're changing your spending plans. Consider these alternatives:
Draw names among adults. Each person buys one gift instead of shopping for every relative.
Exchange gifts only among children. Adults agree to skip presents for one another.
Set a spending limit. Establish a maximum amount per gift or recipient.
Plan a shared experience. Replace individual presents with a family meal, game night, or local holiday activity.
Make homemade gifts, such as festive treats, crafts, or personalized photo albums.
Before agreeing on a new tradition, clarify who participates, how spending limits work, and whether shipping costs count toward the limit. Give everyone room to opt out if the arrangement doesn't suit them.
Make holiday expectations clear before shopping begins
If you're wondering, "Are people spending less this holiday season?" Snap Finance's research suggests that some consumers plan to lower their gift budgets or buy presents for fewer people.
Start conversations early, agree on expectations with your partner, and communicate clearly with relatives and children. You can adjust holiday traditions without sharing private financial details or giving up the parts of the season that matter most.
There’s always more to explore:
The Snap Finance 2026 Outlook Study: You, your money, and the year ahead
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