Every December, Americans’ wallets tell a story. Holiday shopping isn’t just about gifts and decorations—it’s a reflection of consumer confidence and household budgeting strategies. Looking at data from the Empower Personal Dashboard on holiday season spending (primarily December) from 2020 through 2024, we see steady growth: overall holiday season spending rose 41%, rising from $374 in December 2020 to $529 in December 2024.

Key findings:

• Overall holiday spending grew 41%, rising from $374 in December 2020 to $529 in December 2024.
• Beauty and cosmetics nearly tripled (up 194%), climbing from an average of $237 in December 2020 to $697 in 2024.
• Footwear surged 28%, rising from an average of $136 in 2020 to $174 in 2024, while toys and games declined, slipping from an average of $150 in 2020 to $142 in 2024.
• Electronics spending increased 20%, climbing from $810 in December 2020 to $975 in December 2024.
• Home and décor spending has become a holiday tradition, rising from an average of $684 in 2020 to $914 in 2024.

Beauty and cosmetics: From steady to splurge

In December 2020, average spending was $237. By December 2024, it had climbed to $697, nearly a threefold jump. The growth wasn’t linear—spending rose 47% in 2021 to $358, dipped 4% in 2022 to $344, then rebounded with a 53% surge in 2023 to $525 and a further 23% gain in 2024, reaching $647. This trend reflects both inflation and a cultural shift toward self-care and luxury beauty gifting. Beauty spending also consistently spikes every November and December, making it one of the most reliable holiday categories year after year.

Apparel and footwear: The seasonal essentials

Clothing and shoes remain classic holiday staples. In December 2020, spending on apparel averaged $226, while footwear averaged $136. By December 2024, apparel had grown 21% to $273, and footwear had climbed 28% to $174. Apparel spending has risen gradually, with December consistently outpacing fall months. Footwear, however—especially sneakers and premium brands—has clearly emerged as a statement gift.

Electronics: The big-ticket holiday darling

In December 2020, average spending was $810, already well ahead of most categories. By December 2024, it had risen to $975. While the 20% growth rate is relatively modest compared to other categories, electronics still hold the crown as the biggest-ticket holiday purchases. Black Friday and Cyber Monday remain anchors of the shopping calendar, keeping electronics in a league of their own.

Toys and games: A fading but seasonal tradition

Toys and games show a fading seasonal boost. In December 2020, average spending was $150, but by December 2024 it declined 5% to $142. While there are occasional spikes, the long-term trend suggests traditional toys are losing ground to electronic and digital alternatives.

Home and furnishings: A holiday oddity

Home and furnishings aren’t usually seen as holiday categories, but the data shows steady December bumps year after year. In December 2020, average spending was $684, rising 34% to $914 by December 2024.

Balancing joy and budgets

According to Empower’s Going Rate study, 75% of Americans say gifts are more expensive due to inflation and tariffs, and nearly 60% feel that gifting culture has gotten out of hand. Almost half (48%) even report experiencing “gift fatigue.” To cope, many households are getting more strategic: 58% set aside a dedicated budget for gift-giving, while 63% say they shop primarily based on price.