As we head into the holiday season, consumer spending is expected to be brisk. Early forecasts suggest total retail sales could surpass previous records, with many households planning to increase their budgets for gifts, travel, and celebratory meals (Source: Gallup News, October 2025). While this may signal economic activity, it also brings financial planning into focus for individuals and families looking to celebrate while staying mindful of their financial well-being and avoid starting the new year with unnecessary debt.
This year's holiday spending is projected to grow, with the National Retail Federation forecasting sales could surpass one trillion dollars for the first time (Source: NRF, November 2025). However, this enthusiasm comes with a caution. Studies show that many shoppers anticipate taking on debt to cover their holiday expenses. In fact, nearly three in ten borrowers are often still paying off debt from the previous year's holidays, creating an extended period of financial strain (Source: NBC10 Boston, December 2024). This trend highlights the importance of proactive budgeting to help manage spending before it becomes overwhelming. With careful planning, individuals and families can avoid lingering financial pressure long after the celebrations have ended and start the new year on more stable ground.
Younger generations are navigating a complex financial landscape. While Gen Z spending saw a sharp increase last year, many are now planning to scale back their holiday budgets due to economic pressures and a growing focus on building savings (Source: PwC, September 2025). For millennials, the challenge is balancing holiday enthusiasm with long-term goals such as homeownership and future planning for their children. Both generations show a rising awareness that maintaining financial health may require thoughtful trade-offs. They value enjoying the present, but they also recognize the importance of preparing for a secure future. This shift makes smart holiday budgeting an increasingly essential skill.
At Siebert, we believe financial empowerment begins with mastering the fundamentals. The discipline applied to planning a holiday budget is the same discipline that supports long-term wealth building. By turning a season often associated with overspending into an opportunity for thoughtful financial management, you practice habits that contribute to a healthier financial future. This proactive mindset can help you move closer to your most important goals.
Think of planning your holiday finances like hosting the perfect Thanksgiving dinner. First, you create the menu, which represents your financial goals. Next, you write your grocery list with a firm budget for each ingredient, similar to planning your spending for gifts, travel, and food. Then comes the preparation, where you organize everything in advance. Financially, this could mean setting up a dedicated savings account and automating transfers weeks or months before the holidays. This structured approach can reduce last-minute chaos and allow you to enjoy the celebration without unexpected costs or lingering debt.
The holiday debt cycle remains a challenge for many Americans. According to recent data, nearly one third of consumers who take on holiday debt do not expect to pay it off until the following summer or later. A LendingTree report found that 35 percent of Americans have taken on holiday debt, with the average amount nearing fifteen hundred dollars. These figures underscore the value of having a clear spending plan before the season begins.
A debt-free holiday is more than a short-term achievement; it can be a meaningful step on your path to financial security. The skills used during this season, such as planning, budgeting, and consistent follow-through, are the same skills that help you pursue long-term goals. As you look ahead, remember that every major financial milestone begins with a single, well-planned step.
Siebert is here to support you as you prepare for all the financial feasts to come.
Happy Holidays!
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