American consumers are significantly reducing their holiday spending this year as economic uncertainty and rising living costs create widespread apprehension across the nation.
Economic Pressure Forces Spending Cuts
Guardian readers from various states have expressed deep concerns about their financial situation as the festive season approaches. Many report that essential costs like groceries and household bills have increased to the point where discretionary spending on gifts has become unaffordable.
Grace Brown, a 34-year-old from Charlotte, North Carolina, typically enjoys gift-giving throughout the year but finds her budget severely constrained. "I love giving people gifts," she explained. "I'm a person that pays attention all year and will keep notes in my phone if someone mentions something in July they may want."
This year, however, Brown and her fiancé have made the difficult decision to skip exchanging presents with each other entirely. They've already cut back on dining out and other non-essential expenses as prices continue to climb.
Official Data Confirms Consumer Worries
Recent economic indicators support these personal accounts of financial strain. The Conference Board reported that consumer confidence had fallen to its lowest level since April, coinciding with President Trump's announcement of comprehensive tariffs.
Similarly, the University of Michigan's Surveys of Consumers showed notable drops in confidence following summer months. Although official pricing data collection was disrupted during government shutdowns, available figures from September showed prices had increased by 3%, compared to 2.3% in April.
Unemployment rates have also been creeping upward, reaching 4.4% in September – the highest level since October 2021.
Real Stories Behind the Statistics
Jeffrey Larimore, a 68-year-old from Caldwell, Idaho, described how being on a fixed income has forced drastic lifestyle changes. "We had enough disposable income to go out to dinner, take weekend trips and spoil [my granddaughters]," he said. "Since the tariffs have raised the cost of living, we have cut out all of that."
More distressing accounts come from individuals like Ryan, a retired law enforcement officer in Texas who wished to remain anonymous. "We can barely put food on the table," he revealed, expressing particular concern about providing holiday magic for his young children. "I spent my life in service to my country. What he [Trump] has done in less than a single year breaks my heart."
Broader Economic Impact
Industry surveys predict significant reductions in holiday expenditure nationwide. Deloitte estimates that spending could decrease by 4% compared to last year, while the National Retail Federation reports planned spending is down 1.3% after reaching record highs last holiday season.
For many Americans, price increases represent only part of the problem. Shari Dunn, 57, from Oregon, highlighted broader concerns: "There is fear regarding employment and contacts. It's more than just tariffs – it's everything. The instability and fear."
Some consumers are responding through organized action, with Dunn participating in economic boycotts during the Black Friday shopping period.
Creative Alternatives Emerge
Faced with financial constraints, many Americans are finding innovative ways to maintain holiday traditions. Linda McKim Bell, 79, from Portland, Oregon, has committed to buying only secondhand items since Trump took office.
"I have shopped all year at online thrift stores for my family gifts," she explained. "I am making the rest of our holiday gifts: orange marmalade and homemade pastries make great gifts."
Despite agreeing with her fiancé to skip gift exchanges, Grace Brown plans to support local businesses in Asheville, North Carolina, as the community continues recovering from Hurricane Helene. "Whenever we have money to spend, we try to spend it there with small businesses," she said, recalling her teacher's advice: "You vote with your dollars."
