Wondering how much to spend on Christmas presents this year? Learn practical budgeting tips, per-person spending guides, and smart ways to manage holiday expenses without debt.
The holidays bring a familiar tug-of-war between your heart and your wallet. You want to show loved ones how much they mean to you, but those gift receipts can add up faster than twinkling lights on a tree.
Here's some good news: You can create a gift-giving plan that matches your actual paycheck — not some fantasy budget. This guide walks through practical ways to decide what to spend, save where you can, and keep the season joyful instead of stressful.
How much do most people spend on Christmas gifts?
According to the National Retail Federation (NRF), consumers plan to spend about $627 on gifts for family and friends in 2025. And families with children plan to spend $33 more on average on gifts this year, with smaller amounts for friends and coworkers.
These numbers are just reference points. What you spend on your family and friends is unique, and what works for your neighbor might not work for you. Many families find joy in spending far less, while others choose to spend more. The key is finding what fits your income and priorities.
Smart shoppers also take advantage of timing. Check out after Christmas sales to snag deals for next year or grab those final gifts at deep discounts.
How to create a Christmas gift budget that fits your paycheck
Start with a simple calculation: Plan to spend 1.5% of your annual income or dedicate one paycheck as your holiday spending cap. For someone earning $40,000 yearly, that's about $600 total. If that feels tight, go lower — there's no issue in protecting your financial stability.
Next, create a tiered list to allocate your budget:
- Tier 1: Immediate family (50% of budget)
- Tier 2: Extended family and close friends (30%)
- Tier 3: Coworkers and acquaintances (10%)
- Tier 4: Optional gifts and charity (10%)
Write down specific dollar amounts per person. Having concrete numbers can prevent that "just one more gift" spiral that leads to January regret.
Smart ways to save on gifts without cutting back on meaning
The most memorable gifts often cost the least. Consider these wallet-friendly options:
DIY and experiences
- Homemade treats or crafts
- Photo albums or digital slideshows
- Offering your time (babysitting, home repairs, cooking lessons)
- Planning a special day together instead of buying objects
Strategic shopping
- Use price-tracking tools to catch sales
- Stack coupons with cashback offers
- Shop during tax-free weekends
- Buy in bulk for similar gifts (like candles for coworkers)
If a great deal appears before payday, Cash Out1 lets you get up to $150/day, with a max of $750 between paydays from money you've already earned — with no interest or mandatory fees. This timing flexibility can mean not missing limited-time discounts while waiting for your check.
Avoid the holiday debt trap
Credit cards and buy-now-pay-later (BNPL) services make overspending dangerously easy. That average 24% APR on your credit card means a $600 gift balance carried for three months costs an extra $34 in interest. BNPL might seem interest-free, but one late payment can trigger fees that typically range from $2 to $17. These fees can represent a significant percentage of the total and increase the overall cost of your gift.
Before using credit, ask yourself:
- Can I pay this off within the grace period?
- Is this purchase worth the interest I'll pay?
- Do I have cheaper alternatives?
Focus on needs first, then wants. Your financial peace in January matters more than keeping up with anyone else's gift giving. Learn how others navigated holiday expenses wisely in our guide on what EarnIn really helped me do.
How EarnIn can make holiday spending simpler
Even with the best plans, holiday expenses don't always align with payday. That's where strategic tools can help.
For the planners: Tip Yourself2 creates your personal holiday fund. Set it to automatically save a small amount from every paycheck — like having a gift jar that fills itself. Watch $25 per paycheck quietly grow to $300 by December, making the season feel lighter.
For timing flexibility: Cash Out1 helps when opportunities pop up before payday — like flash sales on must-have toys or discounted travel tickets. Get up to $150/day, with a max of $750 between paydays, with no interest, no mandatory fees — just an optional tips1.
These above tools focus on timing, not overspending. They give you flexibility to shop strategically without adding debt to your January bills.
Final thoughts: Keep the giving merry, not heavy
The best gift fits both your heart and your budget. You don't need to match what others spend or go into debt to show you care. Your presence, thoughtfulness, and time often mean more than any wrapped package.
Start planning next year's giving now with Tip Yourself2 to build your holiday fund gradually. Or use Cash Out1 to align gift purchases with great deals, not just payday timing.
Ready to make holiday spending work better for you? Visit EarnIn to explore these tools and more ways to get money at the speed of you.
FAQs
How much should you spend on Christmas overall?
Aim for 1.5% of your annual income or one paycheck as your total holiday budget. Adjust based on your emergency fund and existing debts.
What's a reasonable amount to spend on Christmas gifts?
A reasonable amount varies by income, but many families allocate $25–$100 per adult and $30–$150 per child. Focus on what you can afford without stress.
How can you avoid going into debt during the holidays?
Create a firm budget, use cash or debit instead of credit, and consider timing tools like Cash Out1 for flexibility. Read how EarnIn can help you through the holidays for real user stories.
What's the best time to shop for Christmas discounts?
Black Friday, Cyber Monday, and early December sales offer great deals. Don't forget about after-Christmas deals for next year's gifts or last-minute savings.
Black Friday, Cyber Monday, and early December sales offer great deals. Don't forget about after-Christmas deals for next year's gifts or last-minute savings.
Please note, the material collected in this post is for informational purposes only and is not intended to be relied upon as or construed as advice regarding any specific circumstances. Nor is it an endorsement of any organization or services.
This Blog was sponsored by EarnIn. While the author received compensation, the information shared is grounded in independent research and intended to provide helpful and accurate guidance to readers.
EarnIn is a financial technology company, not a bank. The Cash Out product is provided exclusively by EarnIn. Certain bank products are provided by Evolve Bank & Trust and/or Lead Bank, Members FDIC. The FDIC insures deposits to protect your money in the event of a bank failure. More details about deposit insurance here. Additional services in the app are offered in partnership with trusted third parties.
1
A pay period is the time between your paychecks, such as weekly, biweekly, or monthly. EarnIn determines your daily and pay period limits (“Daily Max” and “Pay Period Max”) based on your income and financial risk factors as outlined in the Cash Out Maxes section of our Cash Out User Agreement. EarnIn reserves the right to adjust the Daily Max and Pay Period Max at its discretion. Your actual Daily Max will be displayed in your EarnIn account before each Cash Out.EarnIn does not charge interest on Cash Outs or mandatory fees for standard transfers, which usually take 1–2 business days. For faster transfers, you can choose the Lightning Speed option and pay a fee to receive funds within 30 minutes. Lightning Speed may not be available at all times and/or to all customers. Restrictions and terms apply; see the Lightning Speed Fee Table and Cash Out User Agreement for details and eligibility requirements. Tips are optional and do not affect the quality or availability of services.
2
Tip Yourself Account funds and Tip Jars are held with Evolve Bank & Trust, member FDIC and FDIC insured up to $250,000. Tip Yourself is a 0% Annual Percentage Yield and $0 monthly fee service deposit account. For more information/details, visit Evolve Bank & Trust Customer Account Terms. The FDIC provides deposit insurance to protect your money in the event of a bank failure. More details about deposit insurance here.
