It looks like Santa’s sleigh might be running on something other than reindeers this year—parents across the country are planning to shell out more than ever for holiday gifts.
According to a newly released survey from CouponBirds, which polled 2,500 parents nationwide, the average American household expects to spend $521 on gifts for a child. That figure is up 13% from last year, a cost that feels a little too close to a second monthly rent payment for many families.
The state with the highest per‑kid spend is New York, where locals plan to drop a staggering $732 on Christmas presents. New Jersey and Texas follow closely, with projected averages of $728 and $722, respectively. In contrast, communities in West Virginia, South Dakota, and Nebraska are holding their spending down to around $300 a child, and only 3% of respondents say they can get away with under $100.
Debt is a real concern. A hefty 58% of parents anticipate dipping into credit cards or using Buy‑Now‑Pay‑Later services to pad their holiday budgets—and only 32% feel confident they’ll finish the season debt‑free. Services like Klarna and Afterpay are being used by 43% of families this year, a jump more than double the usage rate from last Christmas.
When it comes to saving for the holiday rush, the picture is even bleaker. Half of all respondents (54%) say they don’t set aside any money at all for Christmas, while only 7% begin saving well in advance. Most parents aren’t thinking about holiday costs until their bank balance is already stretched thin.
A real‑world illustration of the pinch came from a Pennsylvania mom who took to TikTok to showcase her “Thriftmas” haul. She scoured thrift shops, second‑hand boutiques, and charity resales to find gifts for her four children—all on a $100 budget—so she could avoid slipping into debt under the tree. In her video she declared, “Call me cheap, whatever. I don’t care,” and explained that she’d rather save for a family vacation than swipe her way through Christmas.
She proudly displayed a chic jewelry box, a stack of alphabet letters, and a cozy unicorn hoodie, all purchased for a fraction of the price of new items. The video sparked a heated online debate: some applauded her smart shopping tactics, while others harshly criticized her for being “cheap” and even labeled her a “grinch” in front of her kids.
With wallets tightening, more parents may be tempted to follow in her thrift‑shop footsteps. Whether that means taking a more careful approach to holiday spending or simply rethinking the gifts we buy will be a deciding factor for many in the coming weeks.
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