Nearly two-thirds of Americans say they may give up everyday necessities to make room in their budgets for Christmas gifts this year.
A new survey by US News found that 65 percent of Americans expect to reduce spending on essential items to afford their holiday shopping.
The results highlight the financial pressure many households are facing as the festive season draws closer, forcing families to make difficult decisions about how to allocate their money.
Instead of limiting only luxury purchases or costly celebrations, many consumers are examining their routine spending in an effort to free up cash for presents.
The squeeze comes as Americans continue to contend with high prices for groceries, housing, utilities and other household expenses, leaving less money available for holiday costs.
Christmas has traditionally encouraged families to stretch their budgets for loved ones. This year, however, the expectation to spend is colliding with mounting concerns about affordability.
A separate survey from Ipsos, conducted for financial services company Thrivent , found that 68 percent of Americans plan to cut spending in at least one area this holiday season because of economic conditions.
Dining out was the most common target, with 44 percent planning to spend less on restaurant meals. Another 32 percent intended to reduce gift spending for family and friends, while 31 percent expected to cut back on holiday travel.
Nearly two-thirds of Americans say they may sacrifice everyday necessities this year to afford Christmas gifts
A US News survey found that 65 percent of Americans plan to cut spending on necessities to pay for holiday shopping
The research, based on responses from 2,158 Americans surveyed between September 29 and October 8, also found that more than half expected the current economic climate to affect their holiday spending at least to some extent.
Among respondents who were especially concerned about managing their holiday finances, three-quarters identified the rising cost of everyday goods as a major worry.
Many shoppers are also changing the number of people they buy gifts for, rather than simply searching for cheaper products.
Two-thirds of those reducing gift spending said they planned to buy fewer presents overall, up from 56 percent last year. Meanwhile, 46 percent planned to purchase gifts for fewer people, compared with 37 percent in 2025.
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About half also said they intended to select less expensive gifts.
The findings come as Americans prepare for another costly holiday season, with many expecting their gift budgets to cover less than they once did.
A new Gallup survey found that Americans expect to spend an average of $1,011 on holiday gifts this year.
While that amount is generally consistent with spending in recent years, higher prices mean the same budget may purchase fewer items than before.
Nearly two in five American consumers, or 38 percent, plan to use buy now, pay later services to purchase holiday gifts
The figures indicate that even households keeping their usual Christmas budgets may need to make sacrifices elsewhere to preserve their holiday traditions.
A separate 2026 holiday spending report from NerdWallet found that Americans who plan to buy gifts expect to spend an average of $879, a 21 percent decrease from $1,107 in 2025.
Even with those cuts, holiday expenses remain significant. Americans planning to pay for gifts, travel and other seasonal costs expect to spend an average of $2,525 in total.
Credit cards are likely to help cover much of that spending, with 74 percent of holiday shoppers planning to use one for seasonal purchases.
Nearly two in five shoppers, or 38 percent, also expect to use buy now, pay later services.
However, relying on borrowed money for Christmas could create another financial challenge after the holiday season ends.
Among buy now, pay later users, 38 percent said they did not expect to make their payments in full and on time. That compares with 25 percent of credit card users who anticipated difficulty paying off their balances.
With household finances already stretched, the latest figures suggest that many Americans could enter the new year having either cut back on everyday spending or taken on additional debt to make Christmas special.