Local shoppers cut holiday gift budgets by $220

Burlington residents and shoppers across the region are planning to spend less on holiday gifts this year. The average person expects to spend about $880 on presents, a drop of 21 percent from last year. In 2025, the average expectation was just over $1,100, according to a new holiday spending report from NerdWallet.

The shift reflects a wider pattern of caution among consumers. Kim Palmer, a personal finance expert at NerdWallet, said inflation and rising prices are pushing people to cut back. This includes reducing travel plans and staying closer to home, not just lowering the cost of gifts. Palmer noted that families are feeling financial stress because prices have climbed across many consumer categories. This pressure forces people to find ways to celebrate the season while spending less.

The report suggests that the primary driver is the need to manage rising costs. Palmer explained that people are forced to ask how they can cut back while still observing the holidays. The answer, for many, is to spend less overall. This approach helps households balance the desire to give gifts with the reality of higher everyday expenses.

To manage the season, Palmer recommends making a shopping list early. She advises spreading purchases over several months rather than buying everything in December. Shoppers should also be careful about how they pay for items. Palmer pointed out that many people are using buy now, pay later services to spread out payments. She described this method as a form of debt that must be repaid, which can become difficult to manage once January arrives.

Palmer also suggests tracking items on a gift list and waiting for sales. Prices often dip as the holidays get closer. If possible, shoppers should avoid using emergency savings for holiday shopping. Sticking to the list and resisting impulse buys are key strategies she outlined. These steps help ensure that the holiday season remains manageable for local families.

The data indicates a clear trend toward tighter budgets. As the holiday season approaches, many shoppers in Burlington are adopting these strategies to stretch their dollars. The focus is on careful planning and disciplined spending to navigate the higher cost of the season.