The Great American Holiday Table: How Inflation, AI, and Nostalgia Are Shaping Celebrations

Alex Jasin

Last Updated: November 28, 2025

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For many families, the holidays have always been a time of comfort, celebration, and tradition — but this year, the season looks different. With grocery prices up nearly 30% since 2020 and inflation still squeezing household budgets, Americans are rethinking how they gather, give, and celebrate. Rising costs are shaping gift lists, travel plans, and even what ends up on the dining room table.

To understand how people are navigating the 2025 holiday season, we surveyed 1,000 U.S. adults across income levels, ages, and family types. We asked how inflation was influencing their spending, what areas of their budget they were cutting back, and how AI is showing up in holiday planning. From reusing wrapping paper to Santa taking the blame for budget cuts, here’s how Americans are redefining holiday cheer.

Key Takeaways

About 1 in 8 Americans aren’t celebrating the holidays this year — and it’s primarily due to the economy. 3 in 4 cite financial strain, with over half (54%) pointing to inflation and nearly 1 in 4 saying they need to save for essentials.
43% are spending less this year, and 35% of families with children expect to spend less compared to last season.
72% of parents say Santa’s taking the fall for cutbacks — with many telling kids he’s helping others in need (22%) or delivering fewer gifts (15%).
1 in 4 Americans are changing their holiday meals to cut costs — swapping name brands for generics, choosing cheaper dishes, or skipping dining out altogether.
70% of Americans plan to use AI tools to plan or shop for the holidays, mostly to find deals (68%), generate gift ideas (65%), and stay on budget (47%).
75% will reuse wrapping or packaging to save money and reduce waste — 40% plan to buy “small luxuries” like candles or festive snacks to stay cozy without overspending.
71% of Americans feel pressured to spend more than they can afford on the holidays this year.

Americans Are Celebrating On A Budget

This year, Americans are stretching every dollar to make the holidays happen. With higher grocery costs and rising utility bills taking up more and more of the average person’s budget, the holiday season requires more financial planning. Nearly three-quarters (71%) of Americans feel pressured to spend more than they can afford around the holidays. But the budgets are different for everybody–and here’s how.

Parents are finding ways to trim the budget without disappointing their kids. Nearly two-thirds (72%) of parents are letting Santa take the fall. Of those parents, 22% are telling their children that Santa is helping kids in need, and 15% are saying that Santa’s giving fewer or smaller gifts this year (maybe because the workshop is dealing with tariffs).

Even so, 61% of families plan to spend $500 or more this holiday season, compared to 33% of those without children. Meanwhile, 31% of parents plan to spend less than $500, and 17% will spend less than $250 total. Making the holiday season merry and bright for children adds up quickly, but parents are picking a budget and sticking to it.

When we include those without children, nearly half plan to spend less than $500 this holiday season, and 26% plan to spend less than $250 — this changes based on income. Of the households that earn under $25K, 42% will spend under $250, while 43% of those earning $100K or more will spend over $1,000. This discrepancy illustrates a stark divide between high earners and low earners around the holidays, and their ability to fund a picture-perfect Christmas.

Inflation Has a Seat at the Table

Food prices have been rising faster than inflation, and the USDA predicts that they’ll continue to rise in 2026 — possibly as much as 2.7%. As a result, many Americans have been looking at their shopping habits and adjusting them as a way to save money. Over two-thirds (68%) of Americans said that rising food prices have impacted how they plan their holiday meals, and they’re cutting their budgets with a carving knife.

One in four Americans are buying generic brands to save money, while 24% are skipping dining out, and 23% are making cheaper dishes this year. Still, people are refusing to skip classic dishes: 67% plan to have a turkey this year, and most tables will have stuffing or dressing (64%), cornbread or rolls (57%), ham (54%), and sweet potatoes or yams (53%).

Desserts are getting the same treatment: pumpkin pie (57%), apple pie (43%), and chocolate chip cookies (35%) will be on dinner tables across the USA. When times get tough, people still find ways to afford their familiar favorites. Even if you bring store-brand rolls instead of name-brand ones, what matters is sharing them with family.

Santa’s Newest Helper: AI

People are finding new ways to draft their holiday budgets and stick to them–and they’re thinking beyond the checkbook. This holiday season, AI is Santa’s real little helper. AI programs are helping people make shopping lists, track their budgets, and even write their Christmas cards. What used to be a fringe tool is now part of the mainstream; 70% of Americans plan to use AI to streamline their holiday plans.

Millennials are the most likely to utilize AI this year, with 76% planning to utilize the tool. Gen Z closely followed (69%), then baby boomers (65%), and Gen X (63%). More than half of every generation has embraced AI, showing that widespread adoption goes past generational lines. Gen X and baby boomers, the groups least likely to embrace AI, may avoid it because they’re less familiar with the technology or because they prefer to keep their holiday traditions heartfelt.

Not everyone is using AI the same way. Most Americans turn to AI for practical help, like finding good deals (68%), generating gift ideas (65%), or staying on budget (47%). AI’s ability to scan the entire internet in a few moments is proving helpful for those with hard-to-shop-for people on their list; 39% say they’ll use AI to find unique gifts for their loved ones.

Still others are using AI for a usually-human task–37% will use AI to write gift messages or holiday cards for loved ones. For those who have to send out many cards to family and friends, AI can generate heartfelt messages for everyone on your list.

Treat Yourself…to Small Luxuries

Rising costs aren’t stopping people from getting their creature comforts — they’re just relishing in smaller luxuries than before. Instead of splurging on luxury goods or vacations, people are turning to everyday comforts to keep their winter merry and bright. Despite this, Americans are being practical about what they treat themselves to — they want to spend their money on things that actually serve a purpose.

These luxuries are showing up in the home and at mealtime. Holiday-themed snacks topped the list of small splurges at 41%, with candles or home fragrances (40%), cozy clothing (39%), and seasonal decor (38%) right on its tail. Speaking of tails, people aren’t forgetting their pets: 51% of pet owners plan to buy their animal a Christmas present, usually in the form of treats or snacks. For some, these small comforts may be the majority of their Christmas; 35% of families reported that they plan to spend less this year than last year.

On the flip side, these same items can end up regifted or returned. When we asked what items people most often returned, regifted, or never used, clothing (33%), scented candles (24%), bath gift sets (23%), and novelty mugs (19%) topped the list. So think twice before buying your bestie that silly mug or lotion basket.

Wrap Stars: How Americans Are Packaging Their Presents

Presentation is a huge part of the gift-giving experience, and almost half of Americans agree. We found that 40% of people believe that making gifts look special is a vital part of the holiday experience. But with budgets tightening and the cost of wrapping paper rising alongside everything else, 75% of consumers are planning to reuse wrapping paper or gift bags this year. This isn’t always a financial decision, though — we found that high-income households also chose to reuse packaging for sustainability reasons.

Reusing packaging is a popular choice on both sides of the gift-giving equation: 30% of respondents said that eco-friendly packaging made the gift feel more thoughtful. In comparison, 26% cited feeling less environmental guilt when offering gifts.

Packaging and wrapping don’t just influence how we feel about a gift we give; they also influence what we choose to buy. More than half (57%) of Americans say that holiday-themed packaging makes them more likely to buy something, with nearly 1 in 5 (19%) buying an item entirely for the holiday packaging. Reindeers, snowflakes, and candy canes can be enough to make some people splurge.

Holiday Cheer Doesn’t Have to Break the Bank

Going through the holiday season on a budget has a way of clarifying what really matters. Time with family, meaningful traditions, and the small comforts that make a home feel festive often carry more weight than anything wrapped under the tree. Across the country, people are leaning into that shift. Low-waste habits, thoughtful gifting, and little indulgences that spark joy — without the stress of overspending — are becoming the new rhythm of celebration.

All of this creates a holiday season that feels more intentional than extravagant. The heart of the holidays is still very much alive, just expressed in quieter, more meaningful ways. In many homes, these choices are already shaping traditions that feel more special, more grounded, and more likely to last.

Methodology

We surveyed 1,000 U.S. adults about their holiday spending, AI use, packaging habits, and meal planning. Respondents were segmented by age, gender, income, and household type to understand how inflation, technology, and sustainability are reshaping celebrations.

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ABOUT THE AUTHOR

Alex Jasin

Alex Jasin is a Co-Founder and CMO at custom packaging box company, Refine Packaging. Thousands of companies including T-Mobile, Adidas, MetLife, Pandora, Marriott Hotels, and small businesses nationwide choose Refine Packaging for their custom boxes and wholesale product packaging needs. Recognized as a published thought leader by Dieline, Business Insider, and Entrepreneur, Jasin works tirelessly to help companies create eye-catching custom shipping boxes that stand out from the crowd. Jasin also serves as a consultant for a Blackstone-backed digital marketing agency in New York, where he works with Fortune 500 clients such as Ferrari, Allstate and Wells Fargo.

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