A new report found that more than 30% of respondents anticipate slipping into debt this holiday season or going deeper into existing debt.
The findings come from a survey of 2,000 Americans who celebrate winter holidays, conducted by Talker Research and commissioned by Beyond Finance. The survey determined that 65% of people say it is nearly impossible to know how much to comfortably spend this holiday season.
Respondents say they have been shifting money from various sources to help cover costs this holiday season, such as avoiding eating out (25%), putting less money into savings (21%), or purchasing fewer groceries (19%).
Talker Research found that just over half (51%) of people have created a holiday budget this season. Of those, nearly two-thirds (64%) have already overspent or expect to overspend.
In terms of funding sources, 64% are overspending on cash and debit payments, 54% are using credit cards, 21% are dipping into savings, and 20% are using buy-now, pay-later plans.
Notably, more than half of people (52%) say they have already purchased or expect to buy at least one gift for someone out of a sense of obligation, rather than a genuine desire to gift them something this holiday.
On average, Americans are expected to spend just over $250 on guilt gifts.
In terms of demographics, the youngest Americans are most susceptible to guilt giving. Nearly two-thirds (64%) of Gen Z will give a gift under obligation, compared to 50% of Gen X and 38% of Baby Boomers.
Even so, respondents reported feeling a mix of joy (59%), excitement (50%), and generosity (38%) when purchasing gifts for others. However, nearly a quarter (24%) also reported feeling stressed during the process.
“The financial anxiety we’re seeing isn’t just about economic uncertainty; it’s about complex and deeply-rooted emotions,” said Dr. Erika Rasure, chief financial wellness advisor at Beyond Finance, in a press release.
“People feel torn between wanting to create joy and the guilt of knowing they can’t afford it. When cultural norms, family traditions and social media all amplify that pressure, overspending becomes emotional, not rational.”