Overconsumption often peaks during the holiday season. This time of year often brings more shopping, dining and indulgences. Many people get swept up in the excitement of gift-giving, elaborate meals and joyful decorations, which can heighten the desire to accumulate more—whether gifts, food or experiences.
As a result, many people may overspend on holiday gifts, vacations, parties, and events, only to face excessive debt once the holiday season ends. In 2025, more than one-third of holiday shoppers racked up debt during the festive season, averaging $1,223.1 However, consumer behavior and spending patterns are shifting toward underconsumption. This trend is characterized by minimal spending, staying within a budget, sourcing secondhand goods and clothing, and avoiding unnecessary purchases.
What is Underconsumption?
Underconsumption occurs when consumers limit their resource use and buy fewer goods. This approach emphasizes a shift in values, moving away from acquiring more possessions and instead prioritizing experiences, happiness, and sustainability.
In 2026, underconsumption is evident on social media, where individuals often share posts about avoiding unnecessary purchases, shopping for secondhand goods and clothing, and supporting environmentally friendly brands and products. Many believe this underconsumption trend began on TikTok in 2024 with the hashtag "underconsumption core."2
Resist The Urge To Splurge
You will encounter numerous advertisements both before and during the holiday season. Large retailers and local businesses alike promote Black Friday, Cyber Monday and Cyber Week sales. Businesses also advertise holiday promotions on their websites, through social media, and via marketing emails. As a result, it's easy to get caught up in the excitement of shopping and make purchases that can derail your budget.
To maintain financial stability, build self-discipline and resist the urge to splurge on unnecessary items you, your loved ones, and friends may not truly need. Here are ways to cut spending and embrace underconsumption this holiday season while staying festive.
Establish a Holiday Budget
A detailed holiday budget can help prevent overspending during the festive season. By planning your expenses, you can avoid post-holiday debt, which often leads to financial stress. When creating your budget, include categories for gifts, decorations, holiday boxes and wrapping paper, food and other related expenses. Stick to the spending limit for each category to keep your finances under control.
Shop Secondhand
Shopping at thrift stores and exploring online marketplaces has become popular among consumers who want to save money and practice underconsumption. You can find gently used clothing, books, toys, furniture, home decor, physical media and more—items that your loved ones and friends will appreciate. By giving pre-owned items new life, you also support sustainability.
Consider Ideas for DIY Gifts
Creating do-it-yourself (DIY) gifts lets you use your creativity while adding a personal touch to your holiday offerings. Whether it's custom photo albums, personalized ornaments, repurposed jars filled with holiday treats, hand-poured candles or themed baskets with scrubs and soaps, DIY gifts let you show thoughtfulness and effort. You can also make your own holiday gift wrap from old magazines or newspapers.
Replace Physical Gifts with Experiences
This holiday season, consider giving the gift of experiences instead of physical items that may be forgotten or returned. Experiences create lasting memories. Some ideas include a day pass or annual membership to a state park, local museum, art gallery, or botanical garden. For those who enjoy hands-on activities, consider booking a cooking or art class. These experiential gifts are thoughtful and promote underconsumption.
Make Holiday Meals a Team Effort
Hosting a holiday party and serving home-cooked meals and desserts to family and friends can be expensive. To save money this holiday season, consider hosting a potluck where everyone brings a dish. This way, family and friends can bring their favorite foods to share. If you have leftovers, package them in containers and give them to guests to help reduce food waste.
Buy Holiday Decor That Lasts
When choosing holiday decor such as wreaths, garland, and trinkets, prioritize pieces that capture the festive spirit and can withstand multiple seasons. Long-lasting decor can save you from the recurring expense of buying new decorations each year. Plus, it benefits the environment by reducing waste and minimizing holiday items that end up in landfills.
Consult Family and Friends
When it comes to holiday spending, underconsumption can feel overwhelming, especially if you're unsure what your family and friends expect. To ease this, talk with them early in the holiday season about your plans for gifts, dining and travel, and ask about theirs. Open discussions can help you gauge how much your family members and friends plan to spend during the holidays. These conversations might also encourage some of them to join your underconsumption effort.
