U.S. Real Financial Progress Index: Latinos are rethinking holiday traditions amid rising costs

While family celebrations are central to Latino holiday traditions, new data from BMO’s latest U.S. Real Financial Progress Index reveals that rising costs are forcing many to rethink their plans. In fact, U.S. Latinos expect to spend nearly $2,700 this holiday season—a 30% increase from last year—even as many cut back in key categories such as travel, decorating and entertaining. 

Family remains at the heart of the season. More than half (51%) of Latinos report that gifts, travel and holiday plans are more important than saving, underscoring the cultural value placed on togetherness. However, economic pressures are forcing many to cut back for the holidays. Travel, traditionally a major part of Latino holiday celebrations, is seeing the sharpest decline: only 41% plan to spend on travel this year, compared to 59% in 2024, and nearly 20% have eliminated travel spending altogether. Those still traveling expect to spend almost $1,200—more than 40% of their holiday budget. 

The data reveals U.S. Latinos are also planning to scale back celebrations at home. Average spending on hosting meals and parties has dropped to $210 from $390 last year, and fewer households plan to decorate, with just 57% including decorations in their holiday budget compared to 64% last year.

Despite these challenges, Latinos are demonstrating resilience and resourcefulness. Many are finding ways to preserve traditions by earning extra income or saving throughout the year. Forty-four percent report taking on side hustles to afford holiday gifts, and 51% scaled back gifting earlier in the year to save for the season. 

"Family celebrations are central to Latino holiday traditions, but rising costs are forcing many to rethink their plans. Budgeting and thoughtful planning can help families preserve what matters most without derailing financial progress." 

- Lizzy Diaz-Ortiz, Vice President of Hispanic/Latino Banking, BMO 

To learn more about how BMO helps U.S. Latinos make real financial progress, visit our website.