This year, U.S. holiday sales surpassed $1 trillion for the first time ever, a 4.2% increase from last year according to nrf.com, or the National Retail Federation. In addition to an overall national rise, $257.8 billion was spent on online shopping, with a 7.8% increase from last year. According to Visa and Mastercard, retail spending rose 4.2%, and despite a significant amount of money spent online, 73% of sales were made in stores. For online and in-person shopping alike, the most commonly bought gifts were clothes, electronics, toys, books, and gift cards. 

Despite headlines of abundant holiday shopping this year, data from shoppers shows something different. Surveys show that many shoppers intended to spend cautiously. The Deloitte Holiday Retail Survey found that shoppers planned to spend 10% less than last year, with concerns of inflating prices and a weakening economy. 57% of respondents said that they believe the economy will worsen in the coming year, which is the most pessimistic outlook in 30 years. Many consumers also said they would use deals, recycle items, and make DIY gifts to stay within their holiday budgets. 

Younger generations, particularly Gen Z, reused more when gifting. According to USA Today , Gen Z cut holiday spending by 23% compared with the previous year, emphasizing budgeting. Ways that they were able to save money were mainly through buying their gifts in thrift stores or more budget-friendly stores. In contrast, households earning $100,000 or more spent significantly above the national average, spending about $1,400-1,500 on gifts. This  highlights the economic divide between those who can afford to adapt to rising prices and those who budget their holiday dollars. 

Some strategies that consumers used in an attempt to budget were Buy Now Pay Later options, which allow for short-term loans by splitting purchases into smaller installments. Other attempts included searching for online deals or promotions, shopping on holidays like Black Friday or Cyber Monday, or using AI to help find deals and inspiration for what to buy according to Forbes. 

These numbers show more than just record spending. Although totals surpassed $1 trillion dollars, there is a genuine effort by consumers to spend less. Many shoppers carefully budgeted, made DIY gifts, and used tools like Buy Now Pay Later or AI to budget their purchases. However, even with these strategies, inflation continues to push prices higher, meaning that the cost of goods has risen even as people try to spend less. According to Forbes, the combination of high demand and increased prices, even despite cautious spending, helped total holiday sales surpass $1 trillion, proving that despite the continuous effort to budget, the impact of inflation and rising prices still drove overall spending to record levels.