Holiday spending expected to rise nearly 3% in 2025, Affinity Federal Credit Union reports
As families prepare for the holiday season, new data from Affinity Federal Credit Union (“Affinity”) shows that Americans can expect to spend about $2,828.29 on holiday-related expenses this year — a 2.9% increase from 2024’s total of $2,749.42. The rise aligns closely with the national inflation rate reported by the U.S. Bureau of Labor Statistics.
The findings come from Affinity’s second annual Holiday Spending Index, which tracks typical household expenses between Thanksgiving and New Year’s, including hosting, travel, gifts, entertainment, and decorations. The report provides a snapshot of how families are balancing celebration and cost during one of the most expensive times of the year.
Hosting a holiday meal for 12 people will cost an average of $362.80 — up about 5% from last year’s $344.61. The increase is largely attributed to higher beverage and ingredient prices, particularly for coffee, tea, and wine. Side dish staples also saw modest increases, while prices for turkey and ham dropped slightly year-over-year.
Travel remains one of the biggest contributors to holiday spending. Last year’s AAA forecast estimated 119.3 million people would travel 50 miles or more between Christmas and New Year’s, up from 115.2 million in 2023. Families who travel can expect significant differences based on their mode of transportation: train trips average $1,056 for a family of four, while driving remains the most cost-effective option, with gas averaging $3.04 per gallon as of Oct. 31, 2025.
“The holidays highlight both the joy of giving and the reality of higher costs,” said Grant Gallagher, Director of Financial Wellbeing and Brand Communications at Affinity. “We know this time of year can stretch budgets, which is why awareness and preparation are key. When families understand where their money goes, they’re better equipped to make decisions that support their wellbeing.”
Gifts account for a large portion of household holiday budgets, averaging $495.08 for a family of four — about 18% of total spending. Modest price increases in toys, clothing, and shipping have contributed to the rise. Spending on experiences such as ice skating, light shows, and crafts is also up nearly 10% from last year, totaling $454.38.
Decorating costs have remained mostly steady, averaging $460.03 per household. Slight increases in outdoor décor costs were offset by lower national electricity rates.
“The holiday season is such an important time for families to come together,” said Kevin Brauer, President and CEO of Affinity. “At Affinity, our focus is on supporting members’ financial wellbeing every day of the year, so they can approach the holidays with confidence and peace of mind.”
Affinity’s Certified Wellbeing Coaches encourage families to plan ahead and use tools like spending trackers and rewards programs to manage costs. The credit union’s report emphasizes that small savings steps can help families maintain financial balance while still enjoying the holidays.
The research, conducted in October 2025, reflects national holiday spending trends across food, travel, gifts, and activities. Affinity noted that businesses or products referenced in the analysis are not endorsed by or affiliated with the credit union.
