Will inflation make Santa less generous this holiday season? Here is what Americans think

As the holiday season approaches, a new WalletHub Holiday Shopping Survey reveals how Americans are adjusting their shopping habits in response to inflation and economic pressures. The findings shed light on spending expectations, debt from previous holidays, and shifting priorities in an era of tighter budgets.

With 68% of respondents saying that Santa will be less generous this year, nearly half carrying over last year’s holiday debt, and more than half open to using AI to handle their shopping, it’s clear that financial challenges and new tech are reshaping holiday traditions. Here’s a closer look at what the 2024 holiday shopping season holds for American consumers.

Santa on a Budget: 68% of people say Santa will be less generous this year due to inflation.

Lingering Holiday Debt: Nearly half of Americans still have debt from the holiday season last year.

Holiday Spending Cuts: 31% of people say they’ll spend less on holiday shopping this year than last year.

Uncharitable Inflation: Nearly 3 in 4 Americans say their charitable giving is affected by inflation.

New Cards for Shopping: 52% of people will apply for a new credit card to help with their holiday shopping.

Top Holiday Shopping Motivators: 42% of Americans say their family influences their holiday shopping the most, while 37% point to social media and 17% say their friends have the biggest impact.

AI Shopping Assist: 55% of people would like to outsource their holiday shopping to an AI robot.

Commenting on the survey findings, John Kiernan, WalletHub Editor, said, “The Federal Reserve might think inflation is under control, but Americans don’t feel it. Nearly 7 in 10 Americans say that Santa will be less generous this year due to inflation, and almost three-quarters of people report that inflation is affecting their charitable giving. People looking to make ends meet and enjoy a happy holiday season do have some tricks up their sleeves, though, including opting for sentimental gifts over expensive ones and using a credit card for the initial rewards bonus but not as an excuse to get into debt. In fact, 52% of people say they’re going to apply for a new credit card for the holidays.”