Pressure, Prices and Presents: Your Guide To Ease Spending Stress This Holiday Season

The holiday season means getting together with family and friends, giving and receiving presents — and for many, racking up debt. New MoneyLion survey data reveals that 70% of Americans are worried about money during the holidays, including 82% of Gen Z and 77% of millennials. The research also found that holiday expenses cost Americans an average of 21% of their median monthly take-home pay, potentially slowing down their financial progress well into the new year.  

One reason for holiday financial stress is the pressure to overspend on family and friends. It’s not uncommon to carry shame for not being able to afford the "best" gift or to compare yourself to others. This is especially true for parents — 1 in 4 U.S. adults say they feel the most pressure to overspend on their kids, rising to 1 in 3 millennials. 

The question becomes: How do you move past the shame of not being able to afford a present this holiday season and still do something special for your family and friends? 

To help answer that question and ease holiday financial stress, MoneyLion developed a comprehensive, 50-state holiday money guide, which includes: 

• National survey data on holiday spending pressure and expectations  

• The state-by-state MoneyLion Holiday Stress Index 

• An analysis of which states spend the most on the holidays 

• A holiday gift reality check, revealing insights into gift-giving 

• A holiday money playbook with tips to save, cut costs and manage financial stress and guilt

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MoneyLion’s Holiday Key Findings

• Americans are willing to take on holiday debt for holiday cheer: Eighteen percent of Americans say they're willing to take on holiday debt this year, including nearly 1 in 5 Gen Z adults. That's part of a larger trend — since 2020, credit card debt has increased in every state, by an average of 44%. 

• Younger generations carry the heaviest holiday burden: Financial anxiety is highest among younger adults, with 82% of Gen Z and 77% of millennials reporting holiday money stress, compared with 51% of baby boomers. Among those with financial worries, 35% cited unexpected expenses as their top concern. 

• Credit card delinquencies are up in all 50 states: These missed payments add to financial strain during the holidays. Nevada had both the steepest percentage increase in credit card debt per person at 57% and the largest dollar increase at $1,840. Meanwhile, mortgage delinquencies rose in 47 states, while missed payments on auto and student loans increased in 40 states over the same period.

• People want cash more than gifts: At least 59% of Americans prefer $100 cash to a $100 gift. Additionally, 54% say a DIY gift means more than a store-bought gift. Meanwhile, 6 in 10 Gen Z adults say they're considering a DIY or homemade gift this year, pointing to a growing interest in alternative gift-giving. 

• Texas, Louisiana and Nevada are the three most stressed states: According to MoneyLion’s Holiday Stress Index, the least stressed states are Oregon, Minnesota and Idaho. 

• Men spend big on partners, while women prioritize kids: Nearly 1 in 4 men, or 23%, plan to spend $500 or more on a gift for their spouse or partner this year, more than double the share of women at 10%. Meanwhile, 38% of women say gifts for their children would be the last expense they’d cut from their holiday budget, compared with 26% of men.

• Gen Z would cut family gifts before friends’ gifts: Among Gen Z respondents who say they would cut back their holiday budget, 17% cite gifts for extended family members as the first expense they’d cut, compared with 10% for gifts for friends. 

Want to dig deeper into the numbers? Explore the full holiday survey results at the end of this guide.

Stress Index: Where Holiday Spending Puts the Biggest Squeeze on Wallets

Where you live matters when it comes to holiday spending. To understand these regional differences, MoneyLion developed a Holiday Stress Index that ranks all 50 states based on changes in holiday spending, credit card debt and income. Additional factors include unemployment, reliance on public assistance and credit card delinquencies. Lower scores indicate greater financial stress.

MoneyLion's analysis found that Texas is the most financially stressed state this holiday season. Credit card debt per person rose by 50% over five years — one of the fastest increases nationwide. The state also experienced a sharp rise in families receiving public cash assistance. Oregon ranked as the least stressed state, with a score of 6.91.

Prices: How Much of Your Paycheck Will the Holidays Eat Up?

MoneyLion examined the total cost of the holidays in every state to understand how much holiday spending takes out of monthly budgets. The analysis used the national average for holiday spending from PwC’s 2026 Holiday Outlook report and adjusted it for each state based on regional cost of living, travel costs and gift spending.

Here's what the findings reveal:

• Holiday costs vary by state: Holiday travel and gifts could cost anywhere from $973 to $1,455 this season.

• Holiday expenses take a sizable bite out of paychecks: Nationally, holiday spending accounts for about 21% of monthly take-home pay.

• Southern states face some of the biggest financial pressures: Holiday costs can consume up to 27% of monthly take-home pay in parts of the South, compared with 17% in New Hampshire.

Gift spending brings another challenge. According to a MoneyLion survey of more than 1,000 U.S. adults:

• One in 4 have paid considerably more than market value for high-demand gifts.

• Nearly 1 in 3 have also been scammed or misled when buying from an individual seller on a resale or secondhand marketplace.

The Real Cost of the Holidays Is Clear, and It’s Stressful. Now What?

Holiday spending isn't just about how much you spend. Unexpected expenses, gift-giving expectations and pressure to find the perfect deal can all add to financial stress. Here's what MoneyLion's research reveals about these pressures and how to manage them.

The Hidden Holiday Costs Slowly Draining Your Budget

MoneyLion's survey found that even Americans who plan ahead can face unexpected holiday expenses.

The most common unexpected expenses include:

• Unplanned gifts: 21%

• Shipping costs: 14%

• Hosting costs: 11%

And these are just unexpected holiday expenses. They don’t account for other unexpected costs, such as higher heating bills or medical expenses. 

Beyond surprise expenses, some holiday purchases may not feel worth the money. Decorations topped the list of expenses Americans felt offered the least value for their money at 17%, followed by gifts for people outside their family at 15%.

The key to avoiding holiday budget surprises is to list every potential holiday expense and factor it into your budget. Always add a 10% to 15% buffer into your holiday savings throughout the year, starting in January. Once your travel plans are set, booking rental cars and flights early may help you manage costs.

Using AI To Shop for Gifts? Don't Trust Every Deal

About 63% of Americans in MoneyLion's survey have used AI as a shopping assistant, but only 1 in 5 trust the technology to find the best price.

Gen Z remains the most cautious about using AI as an assistant. More than 55% hesitate to use the technology because of concerns about scams.

AI can still be useful for gift ideas, price tracking and budgeting. But before making a purchase, verify prices on the retailer’s site and make sure you're buying from a reputable seller. If a deal seems too good to be true, take a closer look.

Presents: Are We Keeping Score on Holiday Gifts?

You may spend months thinking about “the gift” for your loved one, but the truth is most people would rather have cash.

• MoneyLion’s survey found an overwhelming 59% of people would prefer $100 cash over a $100 physical gift.

• Gen X is the most cash-focused, with 65% preferring cash, compared with 47% of Gen Z.

When asked what they would cut first from their holiday budget, Americans with a holiday budget pointed to:

• Gifts: 45%

• Decorations: 22%

• Holiday travel: 19%

Gifts for coworkers would be the first to go.  

While most prioritize buying gifts for family, Gen Z appears more willing to cut gifts for extended family than friends. Among Gen Z respondents, 17% would cut gifts for other family members first, compared with 10% who would cut gifts for friends.

And if you think people don’t notice how much you spent on a gift, think again. MoneyLion's survey found:

• Fifty-nine percent notice how much others spend on their gifts.

• Thirty percent try to spend the same in return.

• Nearly 40% of millennials try to match what they receive.

Baby boomers are less concerned about matching gift values. Only 18% give the same amount they receive, while 47% don’t pay attention to how much a gift costs.  

This isn’t true when it comes to spending on a spouse or partner. Men and women prioritize different recipients when it comes to holiday spending. MoneyLion's survey found:

• Men spend more on partners: Nearly 1 in 4 men plan to spend $500 or more on a gift for their spouse or partner, compared with 10% of women.

• Partners are a higher spending priority for men: A partner’s gift would be the last expense cut for 17% of men, compared with 9% of women.

• Women feel more pressure to spend on kids: Among women surveyed, 30% say they feel the most pressure to overspend on their children, compared with 21% of men.

• Gifts for children are a higher priority for women: For 38% of women, gifts for their children would be the last expense they’d cut, compared with 26% of men.

How To Give Cash Without It Feeling Like a Cop-Out

Giving cash may feel impersonal, and you might feel guilty for not shopping for that special present. But you’re actually giving people what they want.

MoneyLion's survey found that 37% of Americans rank cash or gift cards as the top gift they want to receive. They rank it ahead of luxury items, practical gifts, experiences, personalized gifts and handmade presents.  

There are ways to make giving cash feel like it’s personal. Consider these ideas:

• Write a personal letter: Share some of your favorite memories or moments with that person.

• Include a homemade treat: Bake something special to accompany the cash.

• Add a thoughtful touch: Think about what makes your relationship unique and incorporate that into the gift.

How To Set a Gift Limit Without Making Things Awkward

Suggesting a gift limit may feel awkward. How do you tell someone you can only afford $25 for a gift? 

If it's a close friend or family member, consider being honest about the financial challenges you've experienced during the year. This could mean a job loss, medical emergency, unexpected home or car repair, or simply an income that hasn't kept up with the cost of living.

Having an honest and vulnerable conversation can help reduce any preexisting assumptions and ease pressure to spend more than you can afford.

Setting a spending limit can also help keep gift exchanges fair, so neither person feels pressured to spend more than the other.

The Holiday Hangover: When December Spending Follows You into 2027

Credit card delinquencies occur when borrowers fail to make a required payment by its due date. Rising debt and missed payments are adding to the financial pressures Americans face, especially during the holidays.

MoneyLion's analysis found:

• Credit card delinquencies increased in every state from 2020 to 2025.

• On average, credit card debt per person rose from $2,870 to $4,120 over five years.

The combination of rising credit card debt and delinquencies means some Americans could be paying for the holiday season well into the new year. It’s evident that many people can’t keep up with debt, which could lead to other risky moves, like relying on buy now, pay later (BNPL) plans or personal loans with higher interest rates. There’s a risk of the debt cycle continuing year after year.  

Rudri Bhatt Patel’s Holiday Money Playbook

About 70% of Americans are worried about holiday costs, nearly 1 in 5 plans to take on credit card debt this holiday shopping season, and in most states, holiday expenses take up about a fifth of monthly take-home pay.

To lessen this stress and to start the new year without the burden of holiday debt weighing you down, there are proactive steps you can take to push back on societal pressures of gift-giving and keep your budget on track.

How To Enjoy the Holidays Without Wrecking Your 2027 Budget

Based on my experience as a NACCC Certified Financial Health Counselor™, here’s what I recommend to help minimize your holiday stress:   

• Agree on cash limits before you start buying: It may be an unconventional approach, but setting spending limits with family and friends is a good way to stay within your budget. It can also help prevent anyone from feeling shortchanged during gift exchanges.  

• Be clear on what you can afford on your credit card: Instead of looking at your January credit card statement with surprise, determine how much you can afford to pay off in full, so you’re not carrying interest-bearing debt into the new year.

• Make homemade, personal gifts: With the AI age, people are craving a human touch. Consider making a recipe book, a playlist with a letter explaining why you chose certain songs or a digital photo album of your favorite memories. Handmade doesn’t mean you're cheap. It shows that you care.  

• Ask before you buy: Those in long-term relationships may want to agree on what they're buying each other beforehand so there are no surprises.  

• Commit to a monthly tradition: People often overlook time as a gift. Consider getting coffee once a month, watching a movie together or going for a walk. 

• Agree to give gifts after the holidays: If you’re a traditionalist and love to give gifts, there’s a way to save money and continue with your holiday wishes. Consider having a holiday dinner and exchanging gifts afterward, when seasonal sales kick in and take 30% to 40% off normal prices.  

• Give cash or a gift card instead of a physical gift: MoneyLion's study found that more people would rather have cash than a gift. Consider giving the gift of cash instead of a pricey gift.  

• Open an account for holiday spending: Some banks offer savings accounts dedicated to holiday shopping. Make it a New Year’s goal to open one in January, so there's less pressure when December arrives.  

• Adopt a flexible holiday travel schedule: If you’re flying during the holidays, consider booking your ticket early, traveling during off-peak hours or departing on a holiday to potentially save money.  

Methodology 

MoneyLion analyzed financial and holiday spending data across all 50 states to measure holiday stress, seasonal costs and household debt burdens.

The Holiday Stress Index measured five-year changes in eight financial indicators, including income, employment, credit card debt and delinquencies. Additional analyses examined estimated holiday spending relative to monthly take-home income and existing household debt burdens. States were ranked separately for each analysis, with No. 1 representing the greatest financial burden.

Sources included the U.S. Census Bureau, Federal Reserve Bank of New York, PwC's 2026 Holiday Outlook, Bureau of Labor Statistics and Tax Foundation. All data was collected and is accurate as of Oct. 5, 2026.

The article also draws on three U.S. surveys, each with 1,000 respondents, conducted from Sept. 10 to 21, Sept. 21 to 23, and Oct. 21 to 26, 2026. The surveys covered holiday finances, spending habits and online shopping.

MoneyLion Holiday Finances Survey Results

How much do you plan to budget on total holiday gift shopping this year? 

• Less than $100: 11% 

• $100 to $249: 17% 

• $250 to $499: 20% 

• $500 to $999: 20% 

• $1,000 to $1,999: 13% 

• $2,000 or more: 7% 

• Not sure: 11% 

What is the most you plan to spend on a holiday gift for a spouse or partner this year? 

• Less than $50: 10% 

• $50 to $99: 14% 

• $100 to $199: 21% 

• $200 to $499: 17% 

• $500 to $999: 10% 

• $1,000 or more: 6% 

• Not applicable: 22% 

Do you plan on taking on credit card debt this holiday shopping season? 

• Yes: 18% 

• No: 70% 

• I'm not sure: 11% 

How much credit card debt are you willing to take on? Among respondents planning to take on credit card debt: 

• Less than $50: 6% 

• $50 to $99: 8% 

• $100 to $199: 29% 

• $200 to $299: 25% 

• $300 or more: 32% 

Financial worry summary: 

• Has a financial worry: 70% 

• Does not have a financial worry: 30% 

What is your biggest financial worry this holiday season? 

• Going into credit card debt: 8% 

• Overspending on gifts: 12% 

• Disappointing loved ones by spending too little: 9% 

• Having my identity stolen: 7% 

• Falling for a scam or fraud: 9% 

• Unexpected expenses: 24% 

• I don't have a financial worry this holiday season: 30% 

Among the respondents who reported having a financial worry: 

• Going into credit card debt: 11% 

• Overspending on gifts: 17% 

• Disappointing loved ones by spending too little: 13% 

• Having my identity stolen: 10% 

• Falling for a scam or fraud: 14% 

• Unexpected expenses: 35% 

Gift-spending awareness 

• Notice how much others spend on their gifts: 59% 

• Don't pay attention to gift costs: 33% 

• Not sure: 8% 

Some people notice how much others spend on their gifts and adjust what they spend in return. Do you? 

• Yes, I try to spend about the same: 30% 

• Yes, I notice, but I don't change what I spend: 29% 

• I don't pay attention to what gifts cost: 33% 

• I'm not sure: 8% 

Would you rather receive $100 in cash or a $100 gift someone picked out for you? 

• $100 in cash: 59% 

• A gift worth $100: 27% 

• I'm not sure: 14% 

Which of the following have you done to get a high-demand gift or toy over the holiday shopping season? 

• Spent considerably more than market value: 25% 

• Purchased from an unknown website or seller: 16% 

• Bought a knockoff or counterfeit gift: 14% 

• Clicked on a social media ad or email offering the gift: 27% 

• Bought from a stranger via social media: 13% 

• Other: 1% 

• None of these: 46% 

Have you ever been scammed or misled when buying from an individual seller on a resale or online secondhand marketplace? 

• Yes: 32% 

• No: 54% 

• I don't use resale or secondhand marketplaces: 15% 

Have you used an AI shopping assistant or agent? 

• Yes: 63% 

• No: 37% 

Do you trust AI to find you the best price when shopping online? 

• Yes: 20% 

• Somewhat, but I double-check prices myself: 41% 

• No, I don't trust AI recommendations: 16% 

• I don't use AI to help with shopping: 20% 

• I don't shop online: 3% 

Has the amount of scam or AI-generated content online made you more hesitant to shop online this holiday season? 

• Yes: 48% 

• No: 38% 

• Not sure: 14% 

During the holiday season, who do you feel the most pressure to overspend on? 

• My spouse or partner: 13% 

• My children: 25% 

• My parents: 8% 

• My in-laws or partner's family: 2% 

• Other relatives: 5% 

• Friends: 4% 

• Coworkers or my boss: 1% 

• Myself: 9% 

• No one, I don't feel pressure to overspend: 27% 

• Not applicable, I don't spend money on the holidays: 6% 

If you had to cut from your holiday budget this year, which expense would you cut first? Among respondents who have a holiday budget and would cut an expense: 

• Gifts for my children: 4% 

• Gifts for my spouse or partner: 7% 

• Gifts for other family members: 11% 

• Gifts for friends: 11% 

• Gifts for coworkers: 12% 

• Decorations: 22% 

• Holiday travel: 19% 

• Charitable donations: 7% 

• Tips or gifts for service providers: 8% 

And which expense would be the last one you'd cut? Among respondents who have a holiday budget and would cut an expense: 

• Gifts for my children: 32% 

• Gifts for my spouse or partner: 13% 

• Gifts for other family members: 15% 

• Gifts for friends: 6% 

• Gifts for coworkers: 5% 

• Decorations: 6% 

• Holiday travel: 7% 

• Charitable donations: 9% 

• Tips or gifts for service providers: 6% 

Which holiday expense catches you the most off-guard each year? 

• Shipping costs: 14% 

• Travel costs: 10% 

• Hosting costs (food, drink): 11% 

• Wrapping paper, ribbon, cards: 5% 

• Tips or gifts for service providers: 5% 

• Gifts for people I didn't plan to buy for: 21% 

• Decorations: 5% 

• Other: 1% 

• Nothing, my holiday spending usually goes as planned: 29% 

Which type of holiday gift do you prefer to receive? 

• Something handmade: 7% 

• A personalized gift: 10% 

• An experience: 12% 

• Something expensive or luxury: 6% 

• Something practical I need: 24% 

• A gift card or cash: 37% 

• Other: 3% 

Are you considering giving DIY or handmade gifts this year? 

• Yes: 41% 

• No: 59% 

How would you feel if someone gave you a personalized handmade or DIY gift this holiday season? 

• It would mean more than a store-bought gift: 54% 

• It would mean about the same as a store-bought gift: 27% 

• I'd prefer something store-bought: 6% 

• I'd be disappointed: 3% 

• Not sure: 10%

Which part of your holiday budget do you feel gives you the least value for money?

• Decorations: 17%

• Holiday food and hosting: 7%

• Gifts for children: 5%

• Gifts for adult family members: 7%

• Gifts for people outside my family: 15%

• Holiday events, outings or parties: 6%

• Holiday travel: 7%

• None, it all feels worth it: 25%

• Not applicable, I don't spend money on the holidays: 10%

Photo credit: Anna Ostanina / iStock