The holiday season is notorious for being full of joy, laughter – and the occasional budget-induced panic attack. For parents, it’s an especially tricky balancing act to spread holiday cheer while keeping finances in check and their kids (or picky in-laws) happy.
The current nationwide average of 1.85 children per household means most parents are buying for nearly two little holiday enthusiasts (who can rack up the requests like none other). Good news, though: kids rarely notice the financial fine print. The joy of unwrapping gifts, shared traditions, and time with loved ones often outweighs the sticker price of their presents.
Here, we’ll take a closer look at how families are approaching holiday spending this year, and uncover some tips to maintain a festive spirit without breaking the bank.
Key Takeaways:
- Parents expect to spend $461 per child, on average, this Christmas.
- Nearly half, 49% of parents, expect to go into debt to pay for Christmas this year.
- Those going into debt expect to utilize credit cards (65%), and Buy Now, Pay Later services (21%).
- 24% of parents expect to gift their families experiences (e.g., trips, events) rather than physical items.
- More than half, 60% of parents, fear future tariffs will impact their ability to give their kids the Christmas they’d like to.
How Much Do You Expect to Spend Per Child on Christmas Gifts?
When it comes to per-child spending, the nationwide average is $461; however, families vary widely in their budgets:
- Big Spenders: 9% of parents will spend $1,000 or more per child. (Ponies, anyone?)
- Middle Ground: The vast majority of parents say they’ll fall into the $250–$749 range, with 31% spending $250–$499 and 29% spending $500–$749.
- Budget-conscious: 17% plan to drop less than $250, but more than $100.
- Savings City: A mere 4% plan to keep it under that $100, but they are still intent on making the most wonderful time of the year as special as possible.
Christmas Gift Spending Per Child By State
Geography plays a significant role in holiday spending, with some states embracing their collective inner Santa Claus more than others. Here’s a breakdown of the top three highest and lowest averages:…