The holiday ads have not taken over your feed yet, but they are coming. Before they do, there is a quiet window in late October when the season still feels like something you get to plan instead of something that happens to you.
That window is the perfect time for a little gift math. Done early, it means December has a lot fewer surprises.
$890
planned per person
holiday season, 2025
$628
of that on gifts
family, friends, coworkers
$263
food, decor and more
the part that sneaks up
Last year, shoppers planned to spend about $890 each on the holidays, according to the National Retail Federation. Roughly $628 of that was for gifts. The other $263 went to food, decorations, cards, and everything else that comes with the season. That second number is the one that tends to catch people off guard.
Start Your Holiday Gift List With the People
Before prices, there are people. It helps to start with everyone you usually buy for, then add the ones who are easy to forget until the last minute.
The easy-to-forget list
- Teachers, coaches, and the bus driver
- The neighbor who always brings your packages in
- The Secret Santa at work
- The gift exchange at church or with friends
- The hairstylist, the mail carrier, the sitter
- The host of whatever dinner you are invited to
Seeing the full list in one place is usually the most eye-opening part. Twelve names is a very different season than twenty-five.
Twelve names is a very different season than twenty-five.
Setting a Holiday Gift Budget That Fits
Next comes the total. Not the total the ads suggest, and not last year’s total by default. The number that fits this year’s budget.
Start from what is available. How much can come out of each paycheck between now and mid-December, plus anything already set aside for the holidays. That sum is the ceiling.
Then divide it up. The total gets spread across the list. Kids might get a bigger share, coworkers a smaller one. There is no right split, only the one that feels true to your family.
Leave a little cushion. For the gift you forgot, the last-minute party, or the extra roll of tape that somehow costs $9.
A Sample $600 Holiday Gift Budget
Written out like this, the season stops being one big, blurry number. Every piece has a home. And when something new comes up, it is easy to see where the money for it would come from.
The Holiday Extras That Sneak Up on Your Budget
This is the $263 part. Wrapping paper, shipping, holiday cards, stamps, the cookie ingredients, the new outfit for the family photo, the matching pajamas. None of them feel like gifts, so they almost never make it into the plan.
Putting the extras right next to the gifts keeps the total honest. It is also where there is often room to give. Reused gift bags. Digital cards. Deciding the matching pajamas can sit this year out.
Talking to Kids About the Holiday Budget
Kids notice more than we think, and they often handle real numbers better than we expect. Older kids can get a set amount to plan their own gifts for siblings or grandparents. It turns shopping into a project and gives them an early, low-stakes lesson in choosing.
For younger kids, it can be as simple as “we picked three special things this year.” The excitement is about the moment, not the price tag.
Inexpensive Gift Ideas That Do Not Feel Cheap
Some of the gifts people remember most never came from a store. A tin of your famous cookies. A framed photo from the summer. A handwritten card that says the thing you never quite say out loud.
Time counts, too. An afternoon of babysitting for a friend who has not had a night off in months. A ride to the airport. A standing Sunday phone call with the aunt who lives alone. Offers like these can carry more weight than anything in a gift bag. They also tend to be the ones people talk about for years, long after the sweater from the same season is forgotten.
Gifts that cost more time than money
- A family recipe, written out by hand
- A coupon book of favors for a parent or partner
- A playlist or photo slideshow made just for them
- An evening of free babysitting
- A home-cooked dinner delivered to their door
Mixing a few of these into the list can stretch the number further without making the season feel any smaller.
A Quick Check-In in November
A plan made in October will meet real life in November. Prices change, invitations show up, and someone adds a plus-one to Thanksgiving. A quick look halfway through the season, comparing what has been spent with what was planned, keeps the total from drifting without anyone noticing.
Keep Reading
Resources
Goal Setting Workbook A free printable for turning a number like your holiday total into a plan with a target date and small weekly steps.
Money Conversation Starters Free prompts for talking about money with family, including kids, without it turning into a lecture.
Sources: National Retail Federation, annual holiday consumer survey, October 2025.