Shoppers are getting a head start on their holiday purchases to avoid missing out on major sales, according to a new survey from Wallethub.
The personal finance company conducted a nationwide survey to find out what is trending in budgeting, shopping habits and gift-giving this year.
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Nearly half of the people surveyed (47%) began their holiday shopping in October or earlier, according to Wallethub. Almost the same number of people (46%) said they would be starting next month.
Budgeting for the holiday
More than 4 in 5 people expect their holiday budget to be the same as last year or smaller.
When it came to budgeting strategies, the results were varied:
- 28% of respondents said they will stick to strict budgeting
- 24% will use only cash or debit cards
- 24% plan to spread their purchases over several months
- 24% said they had no strategy
Debt and savings
A majority of people (72%) reported they were no longer paying off debt from the previous holiday season.
The biggest motivator for getting shopping done early is the lower prices, with 43% of people in agreement. Nearly two-thirds of survey-takers believe that early holiday shopping saves them money.
A majority of people (77%) said they plan to take advantage of next month’s Black Friday or Cyber Monday deals.
Tariffs
More than half of the people surveyed by WalletHub believe tariffs are going to ruin their Christmas.
The National Retail Federation (NRF) spoke with retail CEOs last month to gauge how businesses are preparing for the holiday season amid tariffs.
One CEO said he wanted people to understand that, even though companies are manufacturing products in the U.S., they’re still subject to tariffs on raw materials imported from abroad.
“Tariffs contribute to increased costs, some of which we have to pass on,” Greg Shugar, owner of Beau Ties of Vermont, told the NRF during a meeting with lawmakers in Washington, D.C., last month.
Mac Harman, founder and CEO of specialty holiday retailer Balsam Brands, told the NRF that inventory challenges resulting from higher costs due to tariffs could lead to product shortages for some retailers this holiday season.
“We have a set budget for how much we can purchase. This year, we’ve had to take 15-50% of that budget to pay for the tariffs,” Harman told the NRF.
View the full survey results from WalletHub here.
Retail forecasts
PwC’s Holiday Outlook survey, released in early September, reports that more than 84% of consumers expect to reduce their spending in general over the next six months. Survey-takers cited rising prices, new tariffs and a higher cost of living.
Fifty-three percent of people said price increases during the holiday will likely affect their spending decisions.
Gen Z respondents — ages 17 to 28 — say major life transitions and early careers in a tough job market are affecting their wallets and expect to reduce their holiday budgets by 23% more than any other generation surveyed.
Consumers expect to spend $1,552 this holiday season on gifts, travel and entertainment, a 5% decrease from 2024.