Many families are avoiding Christmas presents this year. However, it’s not necessarily for the reasons you might expect, like kids being ungrateful or undeserving, but rather because some day-to-day realities have made gift-giving more complicated and more expensive. It’s also more stressful than it used to be. Let’s find exactly why some families refuse to buy presents this year and what they’re trying to do with that extra cash instead.
Higher prices and lower planned holiday spending
You can see the story on practically every price tag in every store. The cost of most items has risen since last year, and that includes holiday shopping. Deloitte’s 2025 Holiday Retail Survey found that around 77% of shoppers expect that they’ll have to pay higher prices.
It’s one of the main reasons that Deloitte has predicted that average planned holiday spending will fall by 10% compared to last year at roughly $1,595. People also expect to buy eight gifts this year, down from nine the previous year. Rising prices have forced some families to make difficult decisions, and they’ve decided to opt out of presents entirely to save themselves some desperately-needed cash.
A lot of people are trying not to add new debt
Another issue is in terms of debt. Bankrate’s 2025 holiday data has found that 28% of shoppers expect that they’ll have to take on debt for holiday-related purchases. Another 61% plan to use their debit cards to pay for any presents instead of credit because they’re seriously trying to avoid adding more debt to their load.
The same survey also found that 29% of families believe that holiday shopping is going to strain their budget. That has led to 30% of them saying they’re spending less overall. It’s an easy rule for these families to follow so that they cut down on spending for the New Year.
Returns are getting pricier and less predictable
Simply receiving a gift can be quite the hassle because the process of returning it is no longer as harmless as it once used to be. Reports from the National Retail Federation indicate that around three-quarters of retailers charge return fees in some cases.
For example, you may have to pay $9.99 for a return at Macy’s, or $7.50 at J.Crew. JCPenney charges roughly $8, and T.J. Maxx or Marshalls will make you pay $11.99 per package. All these costs are enough to make some families decide to skip gifts because they don’t want to deal with any surprises.
January bills are already spoken for before December ends
December money doesn’t really feel like December money for some households because it has already been assigned elsewhere. Families who have tight monthly budgets usually know that property taxes and insurance renewals are coming up right after the holidays.
Those bills don’t care that it’s Christmas week because they simply want to be paid. A few families decide they’re not going to slide money back and forth, or perhaps they’re hoping things work out. They draw a hard line so that they have the cash ready for January because it feels a lot better than having to scramble later.
Health insurance deductibles reset in a few weeks
Families with high-deductible plans know that prescriptions and therapy visits will cost them quite a bit. Even routine care gets expensive quickly once the deductible goes back to zero, and no amount of gift-giving will make that blow any easier. You really can’t put a price on your health.
That’s why a few families put their gift plans on hold, as they’d prefer to stash cash instead. They want to make sure that any medical costs in early January don’t end up going on a credit card and become another expense that they can’t deal with. It’s not for a lack of festive spirit, despite what some people might have you believe. They simply cannot afford to take their health for granted.
Escrow shortages are forcing higher monthly housing payments
Escrow letters tend to arrive with relatively little warning. Once they do arrive, they change how you calculate your costs almost immediately, as a shortfall connected to rising property taxes or insurance may push a mortgage payment up. It usually starts the next cycle of payments.
Homeowners dealing with such surprises have to tighten their budgets practically overnight, and that may force them to cut discretionary spending wherever they can. Holiday gifts are often the first thing to go. The impact of saving money on expensive Christmas presents is much more immediate than reworking everything else, so it figures that they’d cut them out. Why deal with the extra hassle?
Child care price tags are hard to dodge
Child care bills don’t care that it’s the holidays, and families paying for daycare or in-home care will have to pay those charges every week. Care.com’s 2025 Cost of Care Report found that American families pay an average of $343 for weekly daycare costs and nanny care costs an average of $827 per week.
But it gets worse. Data from the Bank of America Institute also shows child care costs are rising faster than overall inflation, and they’re taking up an even bigger portion of incomes. Some families have decided that they’re going to skip gifts rather than stretch themselves thinner in the New Year.
Christmas Gifts People Regret Buying Every Single Year
Sure, they look fun or thoughtful in the moment. But then January shows up, and the regrets come. Here are 8 common Christmas gifts that many people later wish they’d never bought, along with the reasons why.
Christmas Gifts People Regret Buying Every Single Year