Americans are bracing themselves for a shock this holiday season, with two-in-five consumers highly concerned that holiday shopping will cost significantly more in 2025 than last year, according to a new Bankrate survey. The report notes that high inflation and tariff-related price increases are primarily to blame for high prices.
“Unfortunately, we’re seeing a price increase on most of the products that drive sales traffic during Black Friday/Cyber Week,” said Bobby Ghoshal, CEO at Dupe.com, an AI-powered consumer pricing platform.
“Most consumers have already accepted that they will be paying more for electronics, toys, clothing, etc., this year, and hopefully will be adjusting their budgets accordingly."
While overall holiday spending is expected to increase, consumers are responding by shopping more strategically, focusing on deals, private-label brands, and discount retailers to manage higher costs.
“Some prices have decreased in certain areas like gas and TVs, but the general trend is upward, with some retailers indicating they may raise prices further after the holidays,” Ghoshal added.
Landing Discounts You Can Count On
One sure-fire way to save cash on holiday shopping is to focus primarily on product and service discounts. These tips should make your discount hunting experience easier to manage.Use AI shopping tools
“Instead of opening hundreds of tabs from your favorite retailer and price-comparing everything on your list, you can simply visit an AI shopping comparison website or mobile app,” Ghoshal said."There, you can share a URL, image, or written description of the product you’re looking for, and dig up similar items from reliable retailers at a fraction of the original cost.”
An AI pricing search like Dupe can also generate reviews, price comparisons, and product descriptions, allowing consumers to make smart shopping decisions without hours of work.
Use digital coupons and cashback apps
Apply discount codes, search for coupon sites, and use credit-card rewards (like Capital One’s Venture card) to “knock 10 percent to 40 percent off purchases,” advises Terence Bradford, a financial educator and creator of the financial advisory television show A Check For Life.Potluck your parties
Stop trying to carry the entire cost when hosting holiday events. “Ask guests to bring a dish, drinks, or dessert,” Bradford said. “People are happy to contribute.”Buy secondhand or refurbished for big-ticket items
Kids don’t care about the gift box; they care if a holiday gift works. “Refurbished electronics. Alone, it can save 40 percent to 60 percent,” Bradford noted.Take advantage of Thanksgiving weekend sales
Holiday shoppers should focus on the big-ticket items on Black Friday.“That’s mainly because there’s a bigger selection that includes a plethora of doorbusters and stick to smaller shippable items on Cyber Monday, especially laptops, tech electronics, beauty items, and storewide discounts on branded apparel,” said Vipin Porwal, CEO and consumer expert at Smarty, an online shopping rewards app.
“That said, everyone should keep in mind that all retailers participate with some of their best prices of the year on thousands of products and services the entire holiday weekend and Monday.”
Biggest Mistakes With Holiday Spending and Budgets
The biggest mistake people make with holiday spending is failing to proactively plan to balance seasonal joy with their long-term budget priorities.“Balancing the cost of short-term celebrations with long-term saving goals is a serious financial challenge during the holiday season,” said Paul Dilda, head of U.S. consumer strategy at BMO Harris Bank.
“That’s why it's important to create a realistic spending plan to have the holiday season you want without impeding your real financial progress."
The views and opinions expressed are those of the interviewees. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. NTD does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. NTD holds no liability for the accuracy or timeliness of the information provided.