Financial Fear Sapping Holiday Cheer As Americans Brace For Costly Season

The most wonderful time of the year isnt feeling that way for many Americans — especially when it comes to money.

A new survey of 2,000 adults, half of whom hold seasonal jobs, found that 54% are already dreading the holidays because of the financial strain they bring. Nearly seven in 10 (69%) said the holiday season is the most financially stressful time of year, and more than half (58%) said the stress and expense take the joy out of celebrating altogether.

The survey, conducted by Talker Research on behalf of Current, explored how Americans are coping with financial anxiety and finding ways to celebrate while cutting back. More than half (54%) said they plan to make “sacrifices” this year, and three-quarters (76%) will change how they celebrate to save money.

That could mean smaller meals, fewer gifts, or skipping certain traditions altogether. Thirty-six percent are setting strict gift budgets, while 14% are planning a completely “gift-free” holiday. Others will scale back on holiday extras, with 17% saying they wont buy a Christmas tree and 21% choosing to forgo an expensive holiday meal. One in ten plan to celebrate on a different day to avoid the travel costs and price hikes of peak holiday weekends.

“The holidays are an expensive season for everyone, with costs piling up between gifts, food, travel and decor, but for Americans living paycheck to paycheck, the pressure is even greater,” said Erin Bruehl, vice president of communications at Current. “After a year with economic challenges, including people still feeling the effects of inflation on the prices of everyday essentials, many Americans are especially worried this year about how they can afford to celebrate within their already tight budgets.”

Bruehl noted that many Americans turn to seasonal work as a financial lifeline.

“One thing we consistently see is people adding additional jobs around the holidays and using seasonal work to help them make ends meet and relieve some of the financial pressures they feel this time of year,” Bruehl said.

The survey also found that Americans deeply value the contributions of seasonal workers — 76% said the holidays wouldnt happen without them. To show their appreciation, 42% said they typically tip seasonal employees, with younger generations leading the way. More than half of Gen Z respondents (53%) said they “always” or “often” tip, compared to 30% of baby boomers. And 31% of Gen Zers said they tip seasonal workers at a higher rate during the holidays than they do at other times of year, compared to just 12% of boomers.

“Seasonal workers are the backbone of the holiday season. They keep stores running, deliveries moving and businesses prepared for the busiest time of year. For many, the pay they receive during this time is critical for covering bills and supporting their families, which is why its so important they get the recognition they deserve for the essential roles they play,” Bruehl said.

“But beyond recognition, its even more important that seasonal workers have access to financial institutions that support them not just during the holidays, but year-round,” Bruehl said. “Having accounts that provide early access to their paychecks, fee-free overdraft protection and offer higher savings rates can make a real difference in helping them maximize the hard work theyre putting in during the season for the entire year.”

For millions of Americans heading into the holidays, celebration this year will mean something simpler — stretching their dollars while still finding small ways to hold onto the spirit of the season.