Average household spending during the end-of-year holidays is projected to rise by 4% in 2026 compared to the previous year, reaching $1,654, according to a new survey by Deloitte. The report breaks down the specific differences in how consumers plan to allocate their funds. Retail goods are set to see a 10% increase, with an average spend of $988. Conversely, planned spending on holiday activities and experiences is expected to drop by 4% to $666. The shift reflects a broader change in gifting habits.
More Experiences, Fewer Items
A growing number of shoppers intend to give experiences rather than physical items. Half of respondents plan to gift an experience this year, a figure that represents a year-over-year increase from 47% in 2025 and 39% in 2024. Despite the rise in experiential gifts, the desire for a tangible component remains high. About 79% of consumers who plan to purchase an experience want to pair it with a physical item.
Generational preferences drive these trends. Younger shoppers are shifting their budgets toward experiences, while older generations continue to prioritize physical goods. This divergence creates a distinct opportunity for retailers to tailor their strategies to specific age groups. The report notes that Gen Z and Millennial preferences for wish lists, faster delivery, and personalized items are transforming how retail works.
Spending habits also vary significantly by income level. Households earning more than $200,000 plan to spend an average of $3,607 on holiday gifts. In contrast, households earning under $50,000 anticipate spending $693. This gap highlights the different economic realities that influence holiday budgets. While the wealthy focus on high-value gifts, lower-income households may prioritize value-seeking behaviors.
Value Seekers and Early Shopping
Deloitte identified 38% of consumers as “holiday value seekers.” This group adopts five or more money-saving strategies, such as shopping promotions and redeeming rewards. They also check out private labels and other value alternatives. Even with these cost-cutting measures, these shoppers expect to spend 12% more than other consumers. This indicates that economic pressures are not curbing overall spending, only changing how it is allocated.
The timeline of holiday shopping has shifted. Twenty-two percent of consumers plan to start shopping earlier this year than they did last year. A significant portion of budgets is likely to be exhausted by the end of October, the highest proportion recorded in six years. This early spending is fueled by June retail promotional events and a growing interest in October sales events.
Generational Spending Drivers
Gen Z and Millennials are the primary drivers of growth in holiday spending. Combined, the business services firm expects these two generations to account for roughly 50% of total holiday spending.
Financial conditions for younger consumers have improved. They report better household financial circumstances compared to this time last year. This positive outlook allows them to increase spending after pulling back in previous years. The desire for convenience and service is higher among younger shoppers, who are also leading the trend in self-gifting. About 49% of Gen Zers intend to buy a gift for themselves, compared to 18% of Baby Boomers.
Shopping methods reflect these generational differences. Older shoppers prefer a more independent experience once costs are clear. Younger shoppers, however, rely on salespeople to find appealing luxury gifts. Thirty-four percent of Gen Zers and 31% of Millennials said they use sales staff for this purpose, compared to 18% of Gen Xers and 13% of Baby Boomers.
Delivery and Self-Gift Expectations
Speed of delivery is a critical factor for younger generations. About 26% of all respondents want same-day delivery, a figure that rises to 37% among Gen Zers and 33% among Millennials. In contrast, only 13% of Baby Boomers share this preference.
When it comes to self-gifting, the average spending expectation is $299, up 13% from 2025 and 20% from 2024. Male shoppers plan to spend more on self-gifting, at $355, then female shoppers, at $245. This trend is part of a broader movement where higher-income households show greater intent to buy presents for themselves.
Personalization is another growing trend. Twenty percent of survey respondents plan to buy personalized or monogrammed gifts. Gen Zers and Millennials are the most likely to choose this option, with 33% and 29% respectively. For those who find gift shopping stressful, wish lists make the process easier. Seventy-four% of stressed shoppers, including 79% of Gen Zers, rely on these lists to streamline their purchases.
“For the first time in our annual survey, Gen Zers and Millennials are expected to account for 50% of holiday spending, presenting a meaningful opportunity for retailers,” said Natalie Martini, Deloitte vice chair and U.S. retail and consumer products sector leader. “Their preferences, including wish lists, faster delivery and personalized gifts, can help retailers make the shopping experience more relevant and convenient. Retailers that respond effectively may be better positioned to earn these shoppers’ spending this holiday season.”
