Holiday Spending Expected to Reach $2,830 as Families Navigate the Season’s Financial Pressures

Affinity Federal Credit Union’s second annual Holiday Spending Index shows modest increases in hosting, gifting, and seasonal activities, reinforcing the importance of financial wellbeing

BASKING RIDGE, N.J.--(BUSINESS WIRE)--As families across the country prepare for the holiday season, new data aggregated by Affinity Federal Credit Union (“Affinity”) shows that Americans can expect to spend approximately $2,828.29 on holiday-related expenses this year. This figure is up from $2,749.42 in 2024, representing a 2.9% increase year-over-year and aligning with the national inflation rate reported by the U.S. Bureau of Labor Statistics¹.

The findings come from Affinity’s second annual Holiday Spending Index, which examines typical household expenses between Thanksgiving and New Year’s, including hosting, travel, gifting, entertainment, and decorations. The data provides a comprehensive look at how families are managing the celebration-related costs during one of the most expensive times of the year.

Hosting a holiday meal for 12 people will cost an average of $362.80, up roughly 5% from last year’s cost of $344.61. The increase is largely driven by higher beverage and ingredient costs. Prices for coffee, tea, and wine rose sharply, while the cost of key side dishes also increased. Main courses like turkey and ham, however, fell slightly in price, year-over-year.

Travel also continues to be a major factor in overall holiday spending. According to last year’s AAA travel forecast, an estimated 119.3 million people will travel 50 miles or more from home between Christmas and New Year’s, up from 115.2 million in 2023. For families opting to travel, costs vary significantly by mode of transportation. Traveling by train averages $1,056 for a family of four, while driving remains the most affordable option, with the national gas price averaging $3.04 per gallon as of Oct. 31, 2025.

“The holidays highlight both the joy of giving and the reality of higher costs,” said Grant Gallagher, Director, Financial Wellbeing and Brand Communications at Affinity. “We know this time of year can stretch budgets, which is why awareness and preparation are key. When families understand where their money goes, they’re better equipped to make decisions that support their wellbeing.”

Gifting remains a significant part of holiday budgets, averaging $495.08 for a family of four, or about 18% of total holiday spending. Modest price increases across children’s toys, apparel, and shipping have contributed to the rise. Families are also spending more on experiences with holiday activities such as ice skating, light shows, and crafts totaling $454.38 this year, a nearly 10% increase from 2024.

Decorating costs have remained largely stable, averaging $460.03 per family. Slight increases in outdoor décor costs were balanced by nationally lower average electricity rates.

“The holiday season is such an important time for families to come together,” said Kevin Brauer, President and CEO of Affinity. “At Affinity, our focus is on supporting members’ financial wellbeing every day of the year, so they can approach the holidays with confidence and peace of mind.”

Affinity’s Certified Wellbeing Coaches encourage families to plan ahead, look for small savings opportunities, and use available resources to manage seasonal expenses. Taking steps such as tracking spending, prioritizing needs, and using rewards programs can help families enjoy the holidays while maintaining financial balance.

This year’s research was conducted in October 2025 and reflects national holiday spending trends across key categories, including food, travel, gifts, and activities. Businesses or goods included in the research are not endorsed by or members of Affinity Federal Credit Union.

About Affinity Federal Credit Union

Affinity Federal Credit Union is a full-service financial institution, member-owned and community-focused, with a mission to nurture your financial wellbeing. With 20 branches across the tri-state area, Affinity is the largest credit union headquartered in the state of New Jersey, proudly ranking in the top 2% of all credit unions in terms of asset size². The Affinity difference is about people helping people on a deeper level and understanding what YOU need to make your unique dreams a reality. For more information, please visit www.affinityfcu.com.

^1Source: https://www.bls.gov/opub/ted/2025/consumer-prices-up-2-9-percent-from-august-2024-to-august-2025.htm

^2Source: NCUA.gov. Using the “Credit Union and Corporate Call Report Data” found here: https://www.ncua.gov/analysis/credit-union-corporate-call-report-data