Here’s How Much Middle-Class Families Should Spend During the Holidays, According to Experts
Written by
Chris Adam
Edited by
Jenna Klaverweiden
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When I was a kid, $100 was sort of a “magical number” for Christmas. My parents let us pick out a big gift that was $100 or less. Perhaps your family does something similar. Or maybe you feel like you need a better grasp on holiday spending. Maybe it’s helpful to know where others stand. Gallup reported the average consumer is expected to spend $1,007 on gifts this season.
For those looking for some ideas on how much to spend, here’s what financial experts told GOBankingRates.
Also see how much each generation is planning to spend this holiday season.
Percentage-Based Budget
Christopher Stroup, founder and president of Silicon Beach Financial, suggested most middle-class families should aim to spend 1% to 2% of their annual take-home income on the holidays.
“This range allows for meaningful celebrations without compromising savings, debt repayment or early-year cash flow,” he said. “Using a percentage of income ensures the holiday budget matches your financial reality.”
According to Kevin Estes, CFP, founder of Scaled Finance, it may be helpful to think in terms of hours. “Consider your hourly income after taxes and job expenses. How long would your loved ones want you to work to show them you care?”
Last Year’s Numbers
A number of financial experts suggested looking back at last year to see how much you spent and how you felt about it.
“Did it feel peaceful, or did you feel that little knot in your stomach when the credit card bill showed up?” asked Taylor Kovar, CFP, CEO of 11 Financial. “Let that answer guide you. A holiday budget isn’t about restrictions. It’s about protecting your freedom and keeping the season joyful instead of stressful.”
Family Factors
It’s also helpful to consider your family’s traditions and spending needs.
“Every family has different traditions and spending needs over the holidays. Make sure to include all areas of the holidays in your budget such as food, gifts and events. In the busyness of the holidays, things can be overlooked,” said Brandon Gregg, CFP, advisor with BBK Wealth Management.
Ways To Save
According to Annie Cole, Ed.D., money coach and founder of Money Essentials for Women, there are simple ways to save on holiday gifting in 2025.
Try adding items to your digital shopping cart and let them sit. You’ll often receive a coupon by email.
Or consider DIY or thrifted items. Lastly, think about buying experiences people will remember, such as dinner out together or an event.
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