Holiday Spending Trends 2025: Rising Costs, Shrinking Budgets, and Seeking Value

The holiday season is an inevitably intense period, amid rising costs and fragile consumer confidence. Barclays reported consumer card spending declined in September ahead of the Autumn Budget, but reported a rise in “treat purchases” namely in beauty, furniture and streaming services. Seasonal shopping can promote overconsumption by creating a false need for themed products, largely driven by social media trends particularly in the beauty and lifestyle spheres.

When companies, ads and algorithms are urging you to overspend, and your friends and family are splurging on gifts, at Moola we want to help you treat yourselves and the ones you love without breaking the bank. This article lists a few simple ways we urge our users to stay mindful and attuned to their financial goals.

What’s Driving The Holiday Stress This Season?

In recent times, the holiday season is set against the backdrop of economic uncertainty. Traditional holiday shopping events such as Black Friday and Cyber Monday, famously marking the beginning of the holiday season, are relics of the past with 57.3% no longer believing they are relevant. Deloitte’s 2025 Holiday Retail Survey reports that 77% of surveyed shoppers expect raised prices on holiday goods and about 57% of them expect the economy to weaken over the next 6 months. Along with the cost of living crisis and a Budget that did little to shift household finances towards the better, holidays are currently marked by restrained spending behaviour.

Brits are amending their shopping habits amongst these pressures. “The value-seeking consumer” therefore persists, seeking quality, trust and meaningful experiences in brands. Millennials and Gen Z are reshaping holiday expenditure - they are more likely to seek out deals, utilise social media, influencers and AI for inspiration and product discovery, and incorporate digital tools to find the best deals in order to maximise savings. 38% of UK shoppers begin their shopping early, utilising timely seasonal offers.

While this might make the end consumer feel like they’re getting a good deal, often people end up either buying more than they need or buying things they didn’t need in the first place. It’s important to still exercise caution and do some research on whether deals are as good as they seem.

How Can You Feel In-Control?

• Budget - though easier said than done, preparing and sticking to a budget for the holiday season in advance can help curb overspending driven by lack of planning or impulsivity. Eliminating ambiguity around finances in such times can greatly reduce stress and ensure that one is able to prioritise according to their desires while maintaining financial health.

• Plan for the year ahead - the end of the year period can feel overwhelming with numerous expenses but financial planning for the upcoming year can help staying in line with your ultimate goals.

• Skip the social media spiral - many young people fall into the trap of comparing themselves to extravagant content displayed on social media leading to inevitable disappointment. Use social media as a tool to find gift ideas, inspiration and product recommendations instead of frivolous expenditure.

• Create a wishlist & time purchases - while it’s important to budget and limit overconsumption, the idea is not to deny oneself of things you might truly need but it can be difficult to evaluate the real need of something, particularly if it’s not a necessity. Creating a simple list of items and comparing prices on different platforms or waiting for sales, if it’s not a time-sensitive gift, can help in saving marginally.

  
  

At Moola Money, our financial wellness platform that aims to build confidence in millennials in the UK, our framework incorporates a psychographic assessment, cash flow and wealth modelling and goal-setting to deliver a clear, actionable picture of your financial situation which can help kickstart your financial awareness journey.