The High Cost of Holiday Cheer: 65% of Americans Can't Tell How Much Is Safe To Spend this Holiday Season

New survey finds two-thirds of Americans feel cultural pressure to overspend amid rising financial challenges, "guilt-giving," and "FOMO-spending"

Financial anxiety, social pressure, and emotional spending are driving Americans deeper into stress and debt

CHICAGO, Nov. 11, 2025 /PRNewswire/ -- The holidays may sparkle, but for millions of Americans, they also bring deep financial anxiety and emotional strain. In a new national survey commissioned by Beyond Finance, 65% of the 2,000 respondents said it's nearly impossible to know how much they can safely spend this season, while two-thirds (66%) say there's an unhealthy cultural pressure to buy gifts even when they can't afford to.

That pressure has fueled a rise in what experts call "guilt-giving," the act of spending out of obligation rather than desire, and "FOMO-spending," where social comparison and digital influence drive impulsive purchases. The result is a complex emotional and financial landscape that leaves many consumers stressed, overspent, and second-guessing their choices.

This year, 52% of Americans admit they've already bought or plan to buy at least one gift purely out of obligation, spending an average of over $250 on gifts that bring more guilt than joy. Younger generations and families feel this burden the most: Gen Z (64%) and millennials (66%) lead in guilt-giving, compared to 50% of Gen X and just 30% of baby boomers. Parents of children under 18 are the most affected, with 76% admitting to guilt-giving, compared to 44% of non-parents.

Key findings from Beyond Finance's 2025 holiday survey:

• Cultural Pressure to Spend: 66% say there's unhealthy societal pressure to buy holiday gifts; 29% cite family expectations, 26% feel pressure to reciprocate, and 25% blame marketing and things like gift hauls, gift guides, and "wish list culture," which promote the idea that buying gifts equates to caring for others.
   
• Credit Cards Keeping the Season Afloat: 54% of those who have already overspent, or anticipate overspending on their holiday budgets, are putting holiday expenses on credit; 35% have accumulated holiday debt in years past and 31% expect to take on new or more debt this year for holiday expenses.
   
• Budget Breakdown: Only half (51%) of respondents have created a holiday budget; of those, nearly two-thirds (64%) have already overspent or anticipate doing so.
   
• Economic Anxiety Runs High: 65% say it's "nearly impossible" to know how much to safely spend this year.
   
• Social Media's Influence: Nearly one in five (19%) admit to buying gifts or trips mainly to post about them online, while 22% purchased trending gifts they later regretted.
   
• Relationship and Emotional Strain: Nearly a quarter of those in relationships have hidden or plan to hide holiday expenses from their partner — often by using cash or downplaying prices.
   
• Sacrificing Essentials: Over 60% say they've delayed other purchases to afford holiday expenses, including cutting back on dining out (25%), saving (21%), or even groceries (19%).
   
• Emotional Fallout: Many feel financial anxiety during the holidays, experiencing stress (24%), frustration about not being able to find gifts in their price range (18%), and guilt about not purchasing presents (13%), underscoring the link between emotional and financial stress.

"The financial anxiety we're seeing isn't just about economic uncertainty — it's about complex and deeply-rooted emotions," said Dr. Erika Rasure, chief financial wellness advisor at Beyond Finance. "People feel torn between wanting to create joy and the guilt of knowing they can't afford it. When cultural norms, family traditions, and social media all amplify that pressure, overspending becomes emotional, not rational."

Beyond Finance's survey findings highlight that financial pressure is as much psychological as it is economic. As costs rise and expectations mount, the company's integrated approach combining debt consolidation, financial therapy, and financial education aims to help people rebuild both their financial and emotional health.

"People don't set out to overspend during the holidays. They want to connect, to make others happy, to participate," said Lou Antonelli, chief operating officer at Beyond Finance. "But that generosity often turns into guilt and regret. We believe financial and emotional wellness can go hand in hand, and empower consumers to make choices rooted in peace, not pressure, so the holidays can be about meaning — not money."

To help consumers this holiday season, Dr. Erika Rasure offers the following tips:

• Talk About Money Early - Start conversations with family and friends about spending expectations before shopping begins. Setting boundaries early reduces guilt, stress, and overspending, and opens the door to shared values like "presence over presents."
   
• Pause Before You Purchase - Notice emotional triggers — stress, joy, pressure, nostalgia — that drive impulse spending. Step back, breathe, or close the shopping tab for a day before deciding. Awareness is the antidote to overspending.
   
• Give Yourself Permission to Say 'No' - Saying 'no' to group gifts or pricey plans isn't selfish — it's financial self-care. Protect your peace and your wallet; you decide how to spend, not social pressure.
   
• Define Your Seasonal Values - Decide what matters most this holiday season and let those values guide your spending. Financial well-being starts with emotional clarity.
   
• Make Gifts Meaningful - Replace guilt-giving with intentional giving. Thoughtful, creative, or homemade gifts often create more connection than expensive ones.
   
• Reflect and Reset - Keep a holiday money journal to track what brought joy — and what didn't. Use it as a guide to reset your financial habits and emotional priorities for the new year.

Since 2011, Beyond Finance has helped more than 1 million people, resulting in over $3 billion of client debt being paid off. Through personalized debt consolidation plans, free financial therapy sessions, and innovative tools, the company equips clients to break the cycle of debt, create healthier financial habits, and achieve lasting financial freedom.

This survey was commissioned by Beyond Finance and conducted by Talker Research, a third-party research company, from October 14, 2025 through October 24, 2025 with a sample of 2,000 Americans who will celebrate a winter holiday in 2025. 

For more information on Beyond Finance's commitment to financial wellness and its transformative debt consolidation services, visit https://www.beyondfinance.com/blog/. 

SOURCE Beyond Finance