Key takeaways:

• Americans are spending with more intention this holiday season, prioritizing value, memories, and meaningful purchases
• Rising prices are shaping behavior, with 84% of people planning to cut back
• Gen Zers expect to tighten budgets by 23%, while opting for value-based purchases
• 49% of shoppers prefer gifting experiences over material items
• In-person traditions remain strong, with nearly three in four planning gathering with loved ones for a holiday meal

Though nearly 203 million shoppers filled their carts during Thanksgiving weekend, it’s experience-based gifts and cherished traditions that are shaping the 2025 holiday mindset. As inflation and tariffs drive shoppers to hunt for deals and trim discretionary costs, Americans are approaching the season with intention and some restraint, favoring purchases rooted in value and opportunities for connection, meaning, and shared moments.

Holiday shopping season is in full swing as a record 202.9 million U.S. consumers — including 129.5 million in-store and 134.9 online shoppers — checked items off their lists during the five-day period from Thanksgiving through Cyber Monday.¹ As Americans get festive, many may be spending with more purpose this year, gravitating toward quality over quantity, memories over materialism, and purchases that align with their values.

Shopping with intention

During Thanksgiving weekend alone, shoppers opened their wallets to the tune of $337.86 on average for gifts, décor, and other seasonal items.² Overall retail projections for the season appear reasonably healthy — just 1.3% lower than last year's outlays — but some analysts believe the numbers may say more about persistent inflation than consumers’ enthusiasm. Empower research suggests the same, with 75% of Americans saying gifts are more expensive due to tariffs and inflation. In fact, 53% of shoppers say that rising prices (particularly on items like electronics, toys, food, clothing, and household staples) will likely affect their holiday spending decisions this year: 84% intend to cut back, with many turning to more meaningful buying choices — prioritizing value, traditions, and deliberate splurges.³

Uncovering deals is a common theme, with seven in 10 looking for creative ways to reduce costs, including shopping at affordable retailers over preferred ones, redeeming loyalty points, and hand-making gifts instead of buying them.⁴

Among generations, Gen Z is pulling back the most, expecting to trim holiday budgets by 23%.⁵ Along with tightening spending, they’re also aligning purchases with sustainability and wellness values, as 63% select resale or upcycled products.⁶

Read more: A $1 trillion holiday season: Sparked by prices or purchases?

Experiences are high on shopping lists

Along with seeking more bang for their buck, shoppers may be searching for emotional value too. Prioritizing meaningful experiences and memory-making over material objects is a growing trend, as a vast majority of Americans (88%) say that their love of life comes from experiences.

Things like food, travel getaways, concert/live entertainment tickets, and other experience-based gifts are the present of choice for roughly half (49%) of people shopping for family and friends — and they rank high on the wish list for 50% of recipients too.⁷

Read more: Money meets lifestyle: Consumers to spend $2.1 trillion on experiences

A blend of old and new traditions

With 65% of people saying they’ll tap into Gen AI tools to help them with purchases this year, Cyber Monday hit a record $14.25 billion in online spending this year, solidifying its position as the biggest online shopping day of all time.⁸ Still, many are also doubling down on experiencing more traditional rituals of the season, like in-person shopping. About three in four (74%) say shopping in person is the best way to get into the holiday spirit and 75% say it helps them feel connected to others.⁹

Feeling a sense of togetherness is a focus with nearly three in four (72%) intending to gather around the table with loved ones for a home-cooked meal this year.¹⁰ From baking family recipes to exchanging small, sentimental gifts, Americans are holding onto traditions that feel grounding and genuine. Many plan to travel, host celebrations, and exchange gifts, even if it means straining or shifting budgets.¹¹

Read more: The December Mindset: From year-end stress to new-year optimism

The season’s story

Higher prices are nudging shoppers toward smarter choices, but they’re also reinforcing what people value most: Experiences that feel memorable, traditions that create connection, and purchases that deliver real utility or joy. Whether it’s a curated gift, a shared meal, or an experience that brings people together, consumers are reshaping the season around intention.