2 in 5 Americans Plan to Scale Back Holiday Spending--Some Skip Gifts Altogether

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Nov 17, 2025, 11:56 ET

Confidence in personal finances masks growing caution as consumers brace for uncertainty heading into 2026, survey finds

COLUMBUS, Ohio, Nov. 17, 2025 /PRNewswire/ -- This holiday season has arrived with a mix of confidence and caution: While more than half (55%) of Americans say they feel secure in their personal finances, many are tightening their belts and their holiday spending in anticipation of tougher times ahead, according to a 2025 Economic Impact Survey from Nationwide. Two in five (42%) consumers say they plan to spend less this holiday season compared to last year. Among those cutting back, nearly half (49%) are buying fewer gifts, over a third (38%) are opting for cheaper gifts, and one in five (20%) say they won't buy gifts at all.

This spending slowdown isn't limited to the holidays. Since the start of 2025, consumers say they're making fewer impulse purchases (47%), buying fewer luxury items (41%), and buying more used or secondhand goods rather than new (32%).

That caution is spilling into bigger financial decisions. Almost half (48%) delayed or canceled a vacation and 46% delayed or decided not to purchase a car. A significant portion of Americans also put off major life milestones, such as having a baby (21%), postponing a wedding (19%), and retiring (17%).

At the same time, debt reliance is rising. One in 5 Americans (20%) have relied more on debt today than they did a year ago. Of those, 61% carry a balance on their credit card(s), 23% took out a personal loan from a bank or other lender, and 17% borrowed from their 401k/retirement plan.

"Even though many Americans say they feel financially stable today, the way they're behaving tells a different story," said Kathy Bostjancic, Chief Economist at Nationwide. "This year has seen a lot of mixed signals, with some improvement in wages on the one hand but weak job growth, continued inflationary pressures and geopolitical concerns on the other. As a result, consumers are proceeding with caution because they are unsure just how firm their financial footing will be in the near future."

Lingering Pessimism Shapes Outlook for 2026

Despite relative confidence in their personal financial security, Americans feel uneasy about what lies ahead. More than a third (35%) believe the economy will get worse in 2026. Among those with a pessimistic outlook, 78% point to higher inflation as a key driver, while 71% cite the impact of global trade tensions and tariffs. Additionally, one in four (25%) believe the stock market is overvalued or in a bubble, contributing to broader concerns about financial stability.

This growing unease about the economy is shaping their financial priorities. Looking ahead to 2026, a significant share of consumers anticipate greater difficulty in reaching key financial goals, including managing healthcare costs (43%), paying off debt (39%), saving for retirement (34%), and protecting their portfolios from market volatility (31%).

Financial Resilience Begins with Trusted Advice

Even as financial anxiety grows, most Americans are facing financial uncertainty without professional support. Only one in four (25%) consumers survyed currently work with a financial advisor. Yet among those who do, nearly half (48%) say their advisor is their most trusted financial resource, providing perspective and support that can be difficult to find elsewhere.

"Professional support can make a meaningful difference for savers as they navigate their short- and long-term financial goals," said Kevin Jestice, president of Nationwide Retirement Solutions. "A trusted financial professional can help people step back from immediate worries and take a long view—whether that means finding savings today or creating a strategy to stay on track for retirement. Additionally, many workplace retirement plans offer helpful education and planning resources to their participants."

Insurance Confidence Hinges on Human Connection

As consumers navigate economic uncertainty, many are turning to trusted sources for help understanding and managing their insurance needs. Nationwide's survey reveals that 46% of consumers seek help or information about insurance products from an insurance agent, making agents the most relied-upon source, well ahead of friends and family (37%), social media (19%), or AI tools (17%).

Despite the growing presence of digital tools, over half of consumers (56%) say they never use AI for information about home or auto insurance. This suggests that while technology may offer convenience, it hasn't yet earned the trust required for more complex or personal financial decisions.

"When people are feeling uncertain about their finances, they're looking for clarity and control wherever they can find it," said Casey Kempton, Nationwide's P&C President of Personal Lines. "That's where independent agents shine because they remain the most trusted source. A simple policy review can go a long way in helping clients understand what they're covered for and how to make smart adjustments that fit their current budget."

The 2025 Nationwide Economic Impact Survey underscores an evolving financial landscape where stability and uncertainty coexist. As Americans prepare for a new year filled with unknowns, those who seek guidance and take action today may be best positioned to turn caution into long-term confidence.

View Nationwide's 2025 Economic Impact survey data deck

Methodology

Nationwide commissioned Edelman Data & Intelligence (DXI) to conduct a nationally representative online 15-minute survey of 2,000 US consumer adults aged 18 and older from September 5-23, 2025. The survey was weighted to be representative of the U.S. population by age, gender, region and ethnicity.

As a member in good standing with The Insights Association as well as ESOMAR Edelman Data and Intelligence conducts all research in accordance with local, national, and international laws as well as in line with all Market Research Standards and Guidelines.

About Nationwide

Nationwide, a Fortune 100 company based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the United States. Nationwide is rated A+ by both A.M. Best and Standard & Poor's. An industry leader in driving customer-focused innovation, Nationwide provides a full range of insurance and financial services products including auto, business, homeowners, farm and life insurance; public and private sector retirement plans, annuities, mutual funds and ETFs; excess & surplus, specialty and surety; and pet, motorcycle and boat insurance.

For more information, visit www.nationwide.com.

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This material is not a recommendation to buy or sell a financial product or to adopt an investment strategy. Investors should discuss their specific situation with their financial professional.

This information is general in nature and is not intended to be tax, legal, accounting or other professional advice. The information provided is based on current laws, which are subject to change at any time, and has not been endorsed by any government agency.

Nationwide Investment Services Corporation (NISC), member FINRA, Columbus, OH. Nationwide Retirement Institute is a division of NISC.

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Contact:
Mike Switzer
[email protected] ; 614-370-0001

SOURCE Nationwide