How much are you spending this holiday season? And how big is the gap between your budget and what you’ll actually spend?
As much fun as the holidays can be, they’re often also a source of financial stress. The National Retail Federation anticipates holiday sales will rise to 4.2% this year — from 3.7% last year — a and reach over $1 trillion. Meanwhile, credit card debt remains an issue: In the third quarter of this year, the average household had $10,227 in credit card debt, up 2.3% from 2024 per WalletHub data.
To give consumers a sense of what their budgets should look like, WalletHub analyzed over 550 U.S. cities. The study determined maximum holiday budgets using key measures like income, age and savings-to-expenses ratios.
“Depending on the city, an American’s holiday budget this year can range anywhere from just over $200 to more than $4,000, taking into account residents’ income, their existing debt obligations and the cost of living,” said WalletHub analyst Chip Lupo. “Regardless of how well-off you are this season, it’s important to stick to a budget that fits your financial profile so you don’t rack up unsustainable debt and end up in a bad position after the holidays. There are plenty of ways to enjoy the holidays and show you care without spending much money, like hosting potlucks or giving handmade gifts.”
What’s the average holiday budget where you live? Find your city in the list below.