The survey of 2,000 Americans who celebrate a winter holiday examined the cost breakdown of the holiday season — as well as how Americans have been impacted by 2024’s financially challenging climate.

According to the results, the most expensive holiday category is transportation as those planning to travel this year (64%) will spend $846 on average.

“Putting on” the holidays is the next most expensive ticket: Respondents reported they’ll spend $658, on average, in this category. Most expensive items include holiday food and refreshments ($155), throwing parties ($123) and holiday clothing and outfits ($107).

The gifts category is next on the list. On average, Americans plan to spend $559 on their loved ones this year, with the most money being spent on kids ($117) and partners ($92).

Financial Challenges Define 2024

Commissioned by Achieve and conducted by Talker Research, the research confirmed what many have felt this year: For the majority of respondents (61%), 2024 is in their top five most financially challenging years ever.

Possibly because of this, more than four in 10 Americans (43%) are “going lean” this holiday season and will spend less this year compared to years past.

Most (65%) are stressed about their holiday spending this year and 73% say their financial stress takes away from their enjoyment of the season.

For nearly one in five (17%), their financial anxiety completely ruins their enjoyment of the season.

Looking ahead, a fifth (20%) believe they won’t financially recover from the 2024 holiday season until May 2025 or later.

And seeing how Americans plan to pay for the holidays this year, respondents reported that a fifth of their holiday expenses (20%) will be put on a credit card.

In fact, 28% have already or plan to open a new line of credit to cover their holiday spending.

“While the holidays can be one of the best times of the entire year, they can also be the most stressful,” says Brad Stroh, co-founder and chief executive officer at Achieve. “And while most want to put money into making the season special for their loved ones, there can also be pressure from internal and external sources to spend beyond your means. It’s important to take a step back and evaluate your spending habits during the holidays.”

Holiday Debt Risks Remain High

According to the research, 37% of those who celebrate the holidays have gone into debt in years past due to holiday spending. And almost one in five (17%) think it’s likely they’ll go into holiday debt this year.

Looking at how this impacts existing debt, Americans’ average unsecured debt (debt not backed by collateral) totals $23,554. However, a quarter (25%) said they’re not even sure how much debt they have.

Digging deeper, 31% of those with debt reported it’s increased this year and 36% said it’s stayed the same. In contrast, only 14% reported their debt has decreased this year.

Then examining how this influences everyday spending, respondents said they’ve spent more on groceries (48%), rent or mortgage payments (30%), insurance (29%), medical bills (26%), and daily transportation (26%) in 2024 compared to 2023.

And seeing where they’ve had to trim, Americans have spent/contributed less to their discretionary budgets (39%), emergency savings (26%), retirement savings (20%), gifts (31%,) and travel (25%) in 2024 compared to 2023.

“This study shines a light on how such a financially challenging year is impacting the holiday season and how much people are able to enjoy it,” shares Stroh. “For people who are struggling this season, or just in general, there are many ways to take simple steps to move their financial situation forward. These can range from establishing and adhering to a budget to talking to a financial expert to taking a break from your credit card entirely.”

Survey Methodology:

Talker Research surveyed 2,000 Americans who celebrate a winter holiday; the survey was commissioned by Achieve and administered and conducted online by Talker Research between Nov. 5 and Nov. 8, 2024.