BMO Real Financial Progress Index: Latinos are Rethinking Holiday Traditions and Travel Plans Amid Rising Costs

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• USA - español

• The average U.S. Latino estimates the holidays will cost them nearly $2,700. 
• Many are cancelling travel due to increased costs, with nearly 20% of U.S. Latinos deciding to cut travel spending to zero this holiday season.

CHICAGO, Dec. 3, 2025 /PRNewswire-HISPANIC PR WIRE/ -- New data from the BMO Real Financial Progress Index finds Latinos in the U.S. will spend an average of almost $650 more this holiday season than in 2024. On average, U.S. Latinos expect to spend nearly $2,700, a 30% increase from last year, despite many reporting cutting back in key categories such as travel, decorating and entertaining due to rising cost of living concerns.

"Family celebrations are central to Latino holiday traditions, but rising costs are forcing many to rethink their plans," said Lizzy Diaz-Ortiz, Vice President of Hispanic/Latino Banking, BMO. "Our survey data serves as a reminder of the economic pressure Latino consumers are facing right now. Budgeting and thoughtful planning can help families preserve what matters most without derailing financial progress."

Holiday Celebrations Take a Hit – And So Does Travel

Although over half of Latinos (51%) say gifts, travel and holiday plans are more important than saving, many are still cutting back on holiday spending.  

Latinos plan to spend an average of $210 on entertaining, including hosting celebratory meals and parties, compared to $390 last year. Notably, many Latinos say they are completely cutting out entertaining this year, with 59% planning to host family and friends compared to 68% last year.

Decorations are also taking a hit, with many Latinos cutting them out of holiday budgets altogether. 57% say they plan to spend on holiday decorating this year, compared to 64% in 2024. Latinos who plan to decorate will spend an average of $260, compared to $290 last year.

Travel is traditionally a major part of Latino family seasonal plans, however, just 41% of Latinos will spend on travel this holiday season, in comparison to 59% in 2024. Those still planning to travel estimate they will spend almost $1,200, more than 40% of their entire holiday budget.

Whether a short road trip or a family vacation overseas, Latinos are more likely to have cancelled or altered a holiday trip this year due to the rising cost of living than the general U.S. population.

• Domestic Travel: 44% of Latinos have changed their domestic travel plans, and 16% have cancelled or postponed. That's compared to 35% of the total US population that have altered plans and just 11% who have cancelled.
• International Travel: 36% of Latino respondents have changed international travel plans and 16% have cancelled, compared to 29% of the general population changing and 12% cancelling or postponing. 

Latinos are most likely to cite rising day-to-day costs as the reason behind rethinking travel plans. Among Latinos who cancelled or postponed their travel plans, close to half (46%) say travel is a lower priority than daily living expenses.

Other reasons for cancelling plans include the high price of international travel (30%), not having enough budget to spend on travel after purchasing gifts (28%) and not being able to save enough through the year (26%).

"Travel is an expense that can burn through a family budget very quickly if you aren't carefully planning and keeping track of costs," added Diaz-Ortiz. "By using financial tools year-round, families can make informed choices about what kind of holiday travel fits their budget without sacrificing their long-term financial goals."

Holiday Season Sparks Growing Financial Anxiety Among Latinos in the U.S.

With the holiday season underway, Latinos are more anxious about their personal finances than the general population. Half (50%) are increasingly concerned about their personal overall financial situation in the past three months, compared to 44% of the general population.

Latinos are also slightly more worried about job security: 26% of Latinos are more concerned about potential layoffs than they were three months ago, compared to 23% of the general population.

However, Latinos in the U.S. are feeling slightly less financially anxious about how tariffs will affect the economy: 54% of Latinos say they have become more concerned about the impact of tariffs in the past quarter, compared to 57% of the general population.

While Latinos are not overly worried about the general impacts of tariffs, they are more proactive about planning around the new policies. Seven in ten (71%) of Latinos in the U.S. are changing their shopping habits in response to tariffs, compared to 62% of the general population.

Among Latinos who say rising costs related to tariffs will change their holiday spending, 46% are doing their holiday shopping earlier, 46% are trying to buy gifts minimally impacted by tariffs, and 31% are budgeting to spend more.

Hustling and Saving to Preserve Celebrations

In order to afford their holiday traditions, Latinos report trying to boost their spending ability by earning extra income or by saving throughout the year.

• Holiday Side Hustles: 44% say they have taken on extra work or a side hustle to help pay for holiday gifts – higher than the 38% of the general population who have done the same.
• Saving Away for the Holidays: U.S. Latinos are also more likely to have cut back on gifting throughout the year to save for the holidays with 51% having scaled down on gifting, compared to 45% of the general population.

Helping Families Make Real Financial Progress During the Holidays

BMO offers the following tips to help Latino families make real financial progress this holiday season:

• Build a Budget for the Season – and the Next One: Access resources to build a budget that can help manage this holiday season, and plan for next year and the future with BMO SmartProgress, which offers resources for budgeting, saving and planning in English and Spanish.
• Use Points to Go Further: The travel rewards and benefits from the BMO Escape Credit Card, can turn day-to-day spending into points that can help make holiday travel more affordable.

About the BMO Real Financial Progress Index
Launched in February 2021, the BMO Real Financial Progress Index is an indicator of how consumers feel about their personal finances and whether they are making financial progress. The survey aims to spark dialogue that will help consumers reach their financial goals and to humanize a topic that causes anxiety for many – money.

The research detailed in this document was conducted by Ipsos in the U.S. from September 3 to October 11, 2025. A sample of n=2,500 adults ages 18+ in the U.S. were collected via the Ipsos panel, including n=380 Latinos. Quotas and weighting were used to ensure the sample's composition reflects that of the American population (including share of Latinos) according to census parameters. This overall survey has a credibility interval of +/- 2.4 per cent or 19 times out of 20, of what the results would have been had all American adults 18+ been surveyed, while the credibility interval for just the Latino group is +/- 5.0 per cent.

About BMO Financial Group 
BMO Financial Group is the seventh largest bank in North America by assets, with total assets of $1.4 trillion as of July 31, 2025. Serving customers for 200 years and counting, BMO is a diverse team of highly engaged employees providing a broad range of personal and commercial banking, wealth management, global markets and investment banking products and services to 13 million customers across Canada, the United States, and in select markets globally. Driven by a single purpose, to Boldly Grow the Good in business and life, BMO is committed to driving positive change in the world, and making progress for a thriving economy, sustainable future, and inclusive society. 

SOURCE BMO US