Every year, the same question pops up: which holiday makes us loosen our purse strings the most? People plan for weeks and stash away cash to make these celebrations special, but the answer isn’t as obvious as you might think. There’s a mountain of receipts, credit card bills, and traditions driving billions in spending each holiday season. Some of us go all out for gifts, others for travel, decadent food, or over-the-top decorations. So when you think about the one holiday that gets everyone splurging—from mega-malls in Canada to street markets in Europe—what pops into your head? Spoiler: it’s not Valentine’s Day, and it’s definitely not Halloween candy. The winner, with no real contest, is Christmas. Let’s tear into the numbers, the odd facts, and some genuine hacks to help you save a bit when December rolls back around.
What the Numbers Show: Christmas Takes the Crown
When it comes to holiday spending, Christmas is in a league of its own. According to the National Retail Federation, Americans alone spent more than $960 billion during the 2023 holiday season—up about 5% from the year before. That’s not even the whole picture. Factor in Canada and Europe and you’re staring at well over a trillion dollars being spent globally just for Christmas. In the UK, Brits fork out nearly £25 billion at Christmas. On average, Canadian households spend over $1,500 each just in December, mostly on gifts and festivities.
But it’s not just about giving. Christmas is a web of expenses: food, travel, decorating, and all those end-of-year parties. Statista reported that Canadian spending on Christmas gifts clocked in at $600 per person in 2024, compared to about $180 for Mother’s Day. Even Black Friday, which gets lumped into “holiday” talk, is part of this Christmas rush with a whopping 40% of annual gift shopping happening during the post-U.S.-Thanksgiving deals. Christmas is so dominant that no other holiday even comes close, except maybe for Chinese New Year in parts of Asia—but even there, the commercial powerhouse of Christmas is unmatched globally.
Analysts say about 40% of all annual retail sales in North America happen from November to December. Electronics, toys, jewelry, and clothes are the top purchases. Grocery stores love the holidays too, since Christmas spreads mean huge upticks in sales of turkeys, roasts, and pies. Airlines and hotels quietly rake in profits from all the family travel, with bookings in December spiking 20-30% above average.
Outside of North America and Europe, Christmas is still growing. Countries like Brazil, the Philippines, and even Japan are picking up the pace. In Japan, Christmas Eve is so big people reserve fried chicken from KFC weeks ahead. Markets in Mexico spill over with decorations and gifts from November on, even with Three Kings Day coming not long after. The holidays keep evolving, but the numbers are clear: holiday spending peaks in December, with Christmas at the center.
Why Does Christmas Cost So Much?
Okay, so Christmas is the priciest holiday—no secret there. But why? Part of it is tradition. Christmas is built around gift-giving, feasting, and gathering. Add on top the pressure to buy for family, friends, coworkers, and even your dog, and the bills add up fast. The rituals themselves aren’t cheap: decorated trees, Santa photos, city lights, Advent calendars, new pajamas for the kids, and let’s not forget the Christmas cards and postage. And it all has to be done by December 24, because that’s when the magic happens—or so we’ve all been taught since childhood.
Another reason is advertising. Big brands start rolling out holiday commercials as early as Halloween, setting the tone for a “generous” mood. Have you noticed how every major electronics company releases new gadgets in the fall to get you buying in December? Toy companies do the same. Social pressure plays a huge part. It’s hard not to compare what you’re buying or giving to what others are posting. That comparison trap makes plenty of folks spend more than they planned, just to avoid feeling left out or “cheap.”
Credit cards help fuel bigger Christmas budgets, since you don’t feel the pain immediately. Retailers have also gotten smarter, pushing “buy now, pay later” options or stretching sales out for weeks instead of just one day. Sales psychology—those tricksy BOGO deals, limited-time offers, and bonus gift wrappings—also gets people spending more than they said they would. Then there's the “experience” gifts trend: tickets to concerts, spa days, or travel packages can be pricier than traditional presents.
Christmas travel is another costly piece of the puzzle. Many people don’t just stay home—they go hundreds or thousands of kilometers to see loved ones. Last-minute airline tickets, gas, highway tolls, and hotel stays all get a holiday upcharge. A flight from Toronto to Vancouver, which might be affordable in September, could skyrocket in price by late December.
Even holiday meals aren’t safe. Grocery prices tend to spike as the big days approach, especially for popular items (yes, turkeys and prime ribs). If you’re hosting, between food, drinks, tableware, and decorations, costs easily reach hundreds for one evening. And let's be honest, nobody wants to skimp at Christmas.
Other Holidays Compared: Where Do They Rank?
So how do other big-name holidays stack up? Thanksgiving is massive for food and travel (in the U.S.), but gift spending is way lower. Most people put time and money into the feast itself, which means groceries, some decor, and maybe a bottle of wine or two. Easter brings its own traditions—baskets, chocolates, and egg hunts—but doesn’t pack the same financial punch as Christmas. Canadians typically spend about $70 per person on Easter. Mother’s Day, Valentine’s Day, and Father’s Day all see pops in spending on flowers, chocolates, and dinner, but average spending is still below $200 per person.
Halloween could be an outlier. It’s the top holiday for costume and candy sales, especially in North America, but most people draw the line before things get truly expensive. The National Retail Federation put U.S. Halloween spending around $12 billion in 2023. That might sound huge, but it's still just a tiny slice compared to December’s Christmas juggernaut. The only holiday that rivals Christmas—at least in East Asia—is Lunar New Year (Chinese New Year). In China, the holiday can trigger over $120 billion in spending, mainly on gifts, fireworks, food, and travel. But it’s more regional, while Christmas is global.
Beyond the major players, there are tons of other cultural, religious, and regional holidays that are important—Diwali in India, Hanukkah, Eid, and others—but even with spirited shopping, they rarely approach Christmas’ commercial explosion. That said, retail analysts are watching how spending for these holidays is changing as communities grow and traditions merge—the trend is definitely up, but Christmas still leads as a cultural and spending event.
Switching gears to birthdays and anniversaries—they’re personal, and for some families might eclipse small holidays in cost, but as a global event, nothing matches the broad cultural spending pull of Christmas. The bottom line is pretty clear: if you want to see the big retail rush, watch what happens from Black Friday straight through to Boxing Day, and you’ll get it.
Smart Ways to Save Money During Holiday Spending Sprees
Just because Christmas holds the spending crown doesn’t mean you have to wipe out your wallet this December. Plenty of people have figured out how to enjoy the season without living on ramen in January. One of the sharpest tips: start early. Spread out your gift-buying over a few months, and you avoid the December pinch—and score way better deals. Apps that track price drops or alert you to sales can be lifesavers, especially for big-ticket gifts.
Setting a strict budget honestly isn’t as boring as it sounds. Make a simple list of everyone you need to buy for, jot next to each name what’s reasonable to spend, and stick to it. Digital budgeting tools, even free Google Sheets, can help you keep track and add that “no going back” moment after hitting your limit. Families are getting creative too: secret Santa games, homemade gifts, or group donations to charity instead of everyone buying for everyone. It sounds old-school, but it works.
Shopping local can pay off. While big-box stores and online giants get most of the buzz, small local shops often run hidden deals as Christmas gets close. Plus, you’re putting money back into your community, which feels good. For wrapping, nobody says you have to buy a stack of expensive branded paper or ribbons. Try reusing last year’s, or get creative with newspapers, brown paper, or reusable fabric wraps. These small things make a dent, especially for bigger families.
Meal planning can tame food costs, too. Sharing dishes with guests, buying bulk, or shopping the sales early will help. If you’re traveling, booking before November saves heaps—flight price trackers often show December as the worst (and most expensive) time to wait. Consider alternative ways to gather, like video chats if flying seems nuts cost-wise. For extra savings, sift through unused credit card points or miles for gift cards or travel.
Lastly, don’t buy into guilt. Retailers will crank up ads to make you feel the need to buy more, bigger, better. The best celebrations don’t hinge on maxed-out credit cards. Try focusing on what makes the holiday feel worth it: shared laughs, memories, maybe a half-decent turkey (or whatever your specialty is). The trend is clear—Christmas is king for holiday spending, but you don’t have to crown it with a mountain of debt.