Are Minnesotans Spending More To Get Less This Holiday Season?

We are about 5 weeks away from Christmas, and a recent look at consumer spending from a major US financial institution seems to show that shoppers this year are spending more for less. Not the type of news that businesses want to hear during the time of the year when they often can turn 'red' sales figures into profits. This is what the Bank of America Institute had to say about spending through October.

A Majority Of Respondents 'Feeling' Holiday Financial Strain

The Bank of America took a look at its customers' transactional data for the month of October, and the data it got back in return shows a complicated financial picture for many Americans going into the holiday season.

According to the data from Bank of America: 

"Spending on holiday items per household surged 5.7% YoY through October, yet Bank of America card data shows retail transaction volumes have slightly declined since January."

So what does that mean? It seems to show that many people are still out there making purchases for the holidays, but what they are getting seems to be fewer items that are costing more.

Many Consumers Are Looking At Experiences Rather Than Items

One takeaway from the Bank of America 2025 Holiday Spending Survey found that nearly a quarter of those who responded were looking at giving a gift of an experience, like a cruise or vacation, or a gift card, versus something more discretionary.

53% were sticking to a budget, while 31% stated they were going to be buying fewer gifts for fewer people in 2025.

How Can You Make The Most Of Gift Giving This Holiday Season?

One of the things that you can do to perhaps maximize your dollar on buying gifts would be to shop at a wholesale store, like a Costco or Sam's Club, where many people feel that their dollar goes further when shopping in bulk.

Another thing you can do is look for 'dupes' of expensive-looking gifts that really aren't that expensive. Instead of a Labubu for your kids, you can look to something like a Sanrio Kuromi, or Gizmau’s Little Bean Bag League from Funinating.

If you can, shop locally and help keep your dollars in our community. I know many local retailers are hoping for a nice year, as many of them are buying presents too.

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Ultimately, it's between you and what you can realistically afford this year. Don't overspend and remember the reason for the season.