With Thanksgiving, the year’s biggest holiday, just three days away on November 28, consumer spending on food, decorations, and other festivities is expected to rise significantly compared to last year, according to recent analysis.

A survey conducted by online financial company LendingTree between October 1 and 3 among 2,050 consumers revealed that 56% of Americans plan to host Thanksgiving dinners or meals at home this year. Households preparing for Thanksgiving anticipate spending an average of $431 on food, beverages, and decorations—a 19% increase from the previous year. This includes $265 for food and beverages and $166 for decorations. The rise marks the highest year-over-year increase since the onset of the COVID-19 pandemic.

Spending Trends by Demographics
Breaking down the data by age and income:

68% of parents with children under 18,
66% of high-income earners (earning $100,000 or more annually), and
63% of Generation Z (ages 18–27)
reported plans to host Thanksgiving celebrations this year.
High-income earners ($579), men ($496), and parents with young children ($493) are expected to spend the most on the holiday.

Inflation’s Impact on Thanksgiving
However, inflation is causing financial strain for many consumers this Thanksgiving:

60% of respondents said inflation has impacted their holiday spending.
27% plan to adjust their food choices,
26% intend to use more coupons, and
9% will skip hosting altogether due to financial constraints.
Generation Z (68%), families with children under 18 (64%), and households earning less than $30,000 annually (64%) were the most likely to report being affected by inflation.

Matt Schulz, LendingTree’s chief credit analyst, stated, “With most people already having little financial breathing room each month, a 20% increase in Thanksgiving spending could be a significant burden. This is money that could otherwise go toward building an emergency fund or paying off high-interest debt.”

Financial Concerns Among Hosts
36% of consumers hosting Thanksgiving said the expenses are a financial burden.
14% admitted to already regretting their decision to host.
34% of prospective hosts expressed a willingness to use credit cards to cover holiday expenses.
Hosting Expectations and Guest Contributions
Survey results also showed that:

86% of hosts plan to invite close family,
51% will invite friends,
15% may host neighbors,
13% will invite extended family, and
11% plan to include coworkers.
Interestingly, six out of ten hosts expect their guests to bring gifts or financial contributions. Additionally, 25% of hosts said they might reconsider inviting guests in the future if they arrive empty-handed.

Challenges Ahead
Experts predict that inflation-weary consumers will face continued financial constraints during Thanksgiving. Schulz noted, “Some people may need to spend more time hunting for discounts or switching to cheaper alternatives. Others might not be able to afford hosting large family gatherings.”

Reported by Hong-Yong Park

<Hongyong Park>