Here’s Why Gen X’s Holidays Are the Most Expensive — and What They’re Doing About It
Written by
Laura Bogart
Edited by
Kristen Mae
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Gen Xers face a lot of pressure in their daily lives. Between managing their careers, watching their children enter adolescence or young adulthood and tending to their own elderly, ailing parents, they often feel squeezed from all sides. That pressure can escalate during the holiday season, when they’re expected to make everything extra merry and bright — a task that can feel more naughty than nice for their budgets.
According to the recent TD Bank Merry Money Survey, 72% of Gen X respondents said they expect to overspend during the holiday season — compared with 60% of Gen Z respondents. Dr. Preston D. Cherry, a certified financial planner and founder of Concurrent Financial Planning, says he knows what’s contributing to this generational push toward overspending.
He shared why Gen X’s position as “the sandwich generation” is inflating their holiday spending — and what they can do to cut back.
Gen X Is Balancing High Income With High Anxiety
To paraphrase that famous quote from “Spider-Man,” with high income comes high responsibility — at least for Gen Xers who are balancing enthusiasm for their portfolios’ performance with anxiety over caring for aging parents and supporting adolescent or adult children. On top of that, they’re worried about their own retirement readiness, even in peak earning years.
And that sense of obligation can trickle — or fall, like snow — into their holiday preparations. But Cherry is seeing early signs of a generational pushback, specifically in how intentional Xers have become about gifting.
“Gen Xers are focusing on quality over quantity, being selective with gifts and making sure holiday spending aligns with self-care and financial peace,” he said. “They’re not cutting generosity. They are just being more mindful about what, why and how they spend.”
Gen X Feels in Charge of Holiday Happiness
Cherry also points out that while Gen Xers are at a peak earning period, they’re also in a stage of life where financial obligations stack up quickly around the holidays. No one expects a recent college graduate to host Hanukkah in an apartment they share with three roommates, and older adults aren’t called on as much to cater holiday family gatherings. That leaves Gen X to coordinate, cook, travel and gift at a much larger scale.
These tasks — pleasurable as they may be — still represent financial burdens. And when stress piles up, it’s easy to become unfocused in spending decisions.
“They may feel pressure to deliver for adult kids, host family gatherings or uphold holiday traditions,” Cherry said. “Unlike younger generations who may feel freer to say no, Gen X often feels responsible for making the holiday happen. That can lead to emotional overspending without a plan.”
Gen Xers might benefit from embracing some of their kids’ willingness to say no to things they don’t want to do or can’t afford. They can also set clearer boundaries, such as turning holiday meals into potlucks, asking each guest to contribute what they can or setting gift caps. Even opting for a no-gift holiday is fair game.
Gen Xers Should Embrace Loud Budgeting This Holiday
Though planning an ideal holiday can feel satisfying, Cherry wants Gen Xers to prioritize their financial stability and long-term goals over their sugar-plum dreams. Inflation fatigue and lifestyle creep are eroding budgets year-round, and the holidays only amplify those pressures. His advice: Have a clear, intentional holiday plan and budget — and get loud about it.
Loud budgeting is simple: You openly share that you’re sticking to a budget, which creates accountability and signals to others that you’re not taking on expenses that don’t align with your financial peace.
“If you’re practicing a thoughtful, life-aligned budget this holiday season, be proud of that,” he said. “Be open about it. Loud budgeting, values-driven giving and clear communication with family members can turn what used to feel like guilt into clarity.”
Cherry encourages using a simple, direct and compassionate script for the season — something like: “I’m focusing on financial peace this season and keeping gifting light.” You can set expectations kindly, and you don’t need to defend your decision to stick to a budget.
“When you lead with intention, you set the tone for a more meaningful season,” he said.
The Bottom Line
Gen Xers have the chance to lead by example this holiday season, showing older and younger generations alike that true holiday joy doesn’t require spending big money. It’s about big love.
“Without a clear holiday plan or personal boundary, the season can turn into a stress trigger instead of a joy point,” Cherry said. “That is why intentional budgeting, early planning and values-based giving are key tools for this group.”
Need a little extra holiday magic in your budget? MoneyLion is giving away $2,000 a day for 50 days starting Dec. 5. Sign up and see if this festive windfall lands under your tree.
More From GOBankingRates
