61% of Parents Would Go into Debt Rather Than Disappoint Their Kids at the Holidays

What happens when you mix rising prices, economic uncertainty, and a season built on “making it magical?” You get an emotional dilemma for parents, one that hits both the heart and the wallet.

So we asked: Are parents feeling the financial heat this holiday season? According to our new survey, 61% say they’d rather go into debt than disappoint their kids. 

This insight points to a growing ‘emotional debt’ crisis among our nation’s caregivers, where love, guilt, and rising prices collide.

Holiday preparations can be as emotionally taxing for parents as it is financially taxing on their wallets. Unfortunately, for those striving to meet the cultural expectations of good parenting or keeping up with the Joneses, the holiday season has increasingly become synonymous with financial stress.

Our survey finds that about two-thirds (68%) of surveyed parents believe the expectation to deliver a “magical holiday” is financially toxic. Yet, women feel the pressure the most.

More than 70% of surveyed mothers view holiday preparations as financially harmful, compared to 62% of fathers who share the same view. This underscores how the emotional and financial challenge of meeting holiday expectations still falls disproportionately on women.

Our findings also reveal stark differences in holiday spending and guilt among racial groups. White (71%) and Hispanic (68%) parents were far more likely to express their financial discontent than Black (61%) and Asian (43%) parents, highlighting how differences in background can influence perceptions of holiday responsibility. 

Parents aren’t blind to the problem; they’re just trapped in it.

Due to cultural norms, parents often feel obligated to create the perfect holiday atmosphere for their children, whether that means buying Christmas and Hanukkah gifts or creating the best Halloween costumes. And having to weigh tradition against their wallets has left many in an impossible situation.

“Parents should remember that kids can pick up on their stress and anxiety over holiday spending, which can backfire. Instead of their kids looking forward to the holidays as a time of celebration, they may actually be creating memories of their parents being worried about money,” says Bobbi Rebell, Consumer Finance Expert at CardRates.com.

Our results reveal that millennials are the most emotionally invested, with 67% of those surveyed saying they’re willing to go into debt to create a magical holiday experience for their families — the highest among generations. Gen Z and Gen X trail behind, with 57% and 59% of respondents agreeing. 

Though already juggling student loans, childcare, and housing costs, millennials still feel the heaviest emotional pull to give their children “the holiday celebration they deserve.” How millennials approach parenting may explain the emotional dilemma they are facing.

Known for their gentle parenting style, which prioritizes emotional and mental support above all else, millennials may feel more pressure and guilt from disappointing their kids than their counterparts, despite the risk of debt.

This may prompt them to spend more on the holidays, even if they feel today’s prices are unaffordable.

Rebell adds, “Instead of indulging their kids and creating unrealistic expectations, parents can use the holidays to teach spending priorities, like gifting toys they have outgrown to other kids. If they want to get that one “wow” item for themselves, it’s a chance to discuss intentional spending and create traditions around giving rather than shopping.”  

The issue of holiday debt and financial strain isn’t unique to any one people group. In fact, our findings show that it’s a near-universal experience. 

Our study reveals that about 6 in 10 parents across every income group say they would spend beyond their means to keep up with holiday traditions.

Many people are feeling the emotional stakes of delivering the perfect holiday, and the numbers prove it:

This emotionally driven habit is also consistent across an even more interesting demographic: political affiliation. Republicans (63%), Democrats (65%), and Independents (53%) all admit they would take on debt to create an extra special holiday for their families. 

The drive to make the holidays special, even at a cost, is one of the country’s few shared pressures, and it’s evident that many American families are being stretched this holiday season and feeling the guilt to do so.

With the holiday season underway, many parents find themselves torn between upholding cherished traditions and maintaining financial responsibility.

Even when money is tight, families often spend beyond their means to give their children an ideal holiday — a reminder that the season’s spirit is often overshadowed by what we feel pressured to afford.

This survey was conducted in 2025 among 1,000 U.S. parents of school-aged children (ages 5–17) via the Pollfish online survey platform. Respondents were recruited through Pollfish’s random device engagement methodology, which uses mobile apps to reach a diverse cross-section of U.S. consumers.

The sample is non-probability-based and unweighted, meaning results are not nationally representative but reflect a broad range of parent demographics by age, gender, income, and race/ethnicity. Results have an approximate credibility interval of ±3% for the full sample. 

Each question allowed one response, and the survey included standard Pollfish quality controls to ensure reliable data. Subgroup findings (e.g., by generation or income) may vary.

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