2025 holiday shopping is upon us. However, it is shaping up a bit differently this year. Increasing inflation and tariff changes are influencing customer budgets and shopping behaviors. In addition, customers are expressing increased caution around holiday promotions, citing fake deals and price manipulation by retailers. As such, shoppers are now more than ever seeking value and making only the necessary purchases. They are starting to shop earlier and be selective. With these changes in mind, we compiled the best practical money-saving tips to help you shop wisely. Key Insights According to the PissedConsumer holiday shopping survey, 64.9% of customers think that inflation will impact holiday shopping prices this year. The survey further indicates that customers are starting their holiday shopping earlier each year to beat inflation and stock shortages, with a majority aiming to complete their purchases by November. According to recent data, U.S. consumers expect holiday spending to drop about 5% compared to 2024. Smart Spending Starts Early An upcoming holiday shopping trend is that shoppers are shopping earlier each year to beat inflation and stock shortages. The PissedConsumer survey shows that over 46% of consumers begin their shopping between August and October. Shopping early prevents last-minute stress and gives you enough time to plan your purchases and find the best deals. It also prevents you from making last-minute, “it’s on sale” impulse buys. As Trae Bodge, an accomplished lifestyle journalist, TV commentator, and author of TrueTrae.com, advises, Create a list of your recipients, gift ideas, and a budget for each. Keep it on your phone—I use the Notes app—so you can refer to it anytime. Look for deals and pounce when you see a good one! According to Michael Podolsky, the co-founder & CEO of PissedConsumer.com, a review platform: Planning your spending early, shopping for gifts in advance, and sticking to a need-only list can help prevent unexpected expenses.By preparing ahead and following a carefully curated list, you’ll stay focused on what matters and avoid unnecessary spending. Use AI to Improve Holiday Shopping Experience AI is increasingly becoming a part of our everyday lives. It can be a useful tool for navigating holiday shopping more efficiently. You can use AI for price comparison to find better deals and discounts, as a personalized budgeting app, to find new products, or for tailored recommendations. While discussing the benefits of using AI for holiday shopping, Trae mentions that, for example, “ChatGPT will provide suggestions based on a prompt. If you are looking for specific recommendations, try Amazon’s Rufus. Walmart’s Sparky offers a bit of both - general and specific.” However, it’s also important to be aware of the potential risks. For example, deepfake ads can mimic trusted brands or influencers to trick shoppers into scams. AI-driven tools can also influence prices. Some retailers use AI algorithms to monitor your browsing history, shopping patterns, and even how long you hover over a product. Based on your behavior, the system predicts how likely you are to buy and can either raise or lower your price accordingly. So, you can finish by being overcharged during holiday shopping. Be Careful with Social Media Stores TikTok Shop, Instagram, and Facebook Marketplaces are on the rise. These social media platforms can be great for discovering new products and great deals. However, scammers often use them to trick people. Here are a few tips to help you shop safely on social media stores: Avoid clicking directly on social media ads. Instead, Trae advises that you “look at the link closely, or better yet, drop it into the McAfee Scam Detector.” Be cautious of deals that seem “too good to be true”. Beware of extremely low prices, massive discounts, and offers that have countdown timers, as these are common tactics used by scammers. Confirm that an offer is from a legitimate retailer. When you come across a promo or social media ad, visit the retailer’s official website and verified social media pages to confirm that the store actually exists and has a good reputation. Avoiding Holiday Overspending Traps The holiday season is filled with deals and promotions, making it easy to overspend. Michael Podolsky shares: Impulse buying is a common pitfall during the holiday season, as seen from multiple consumer reviews. Discounted offers may seem like opportunities you can’t miss, leading to overspending. To manage holiday shopping expenses this season, 44.4% of shoppers are relying on savings, 30.6% are buying earlier, and 27.7% plan to purchase fewer gifts. Another potential trap for overspending is BNPL (Buy Now Pay Later). When asked whether BNPL is a smart tool or a holiday debt trap, Trae said that it depends on the shopper. She noted that BNLP can be useful for shoppers who want to spread out their payments and can adhere to the payment schedule. So, how to avoid overspending this holiday season? Below are tips to avoid overspending this holiday season: Use BNLP services for bigger-ticket purchases, not for everyday impulse purchases. Set a budget and a gift list and stick to them. Track your purchases against the budget and gift list as you go. Do not fall for marketing tricks, such as limited-time discounts that create urgency and pressure to buy. Take time to compare prices across retailers to ensure you are getting the best deals on your purchases. Make use of loyalty points, cash-back apps, or rewards to save on your purchases. Keep Eyes on Holiday Shopping Scams Shopping scams are typically on the rise during the holiday season as scammers leverage the increased volume of purchases. With the rise of AI, scammers are becoming increasingly sophisticated. They often use technology to impersonate legitimate businesses, create fake storefronts, or send realistic phishing messages. Top scams often take the form of bogus links leading shoppers to fake sites. Be particularly cautious of ads with a sense of urgency, where you can find such phrases as “it’s urgent,” “limited collection,” etc. Trae Bodge recommends using a scam protector software such as McAfee+ that spots and alerts you if a link, text message, email, or video is a potential threat. Michael Podolsky, in his turn, emphasizes the importance of learning to identify legitimate deals. He says: Be cautious of offers that seem “too good to be true” and approach steep discounts with skepticism. Take the time to research products, compare prices across different stores to check if the deals are genuine, and even postpone your purchases for a few days before deciding. Also, beware of delivery scams and gift card scams, as they are quite common. Whereby you order items, but they are never delivered. With gift card scams, a scammer may reach out asking you to share the card details. Below are additional holiday shopping safety tips: Verify a store’s legitimacy before making your order with them. If shopping online, confirm that the website is secure. There should be a https:// or a padlock symbol preceding the website address. Reputable stores also have clear return, refund, and shipping policies, and provide a working customer support number. Beware of websites that were created recently with limited information or misspellings. Watch out for fake reviews. Some tell-tale signs include overly positive comments, generic comments, and ratings with no written feedback. Also, check reviews on different platforms, including forums such as Reddit, to understand the real consumer issues with prospective retailers. Protect your payment information. Never enter your payment details on public Wi-Fi. Also, avoid websites that do not offer secure checkout options such as PayPal, Apple Pay, Google Pay, and verified credit card processors. Whenever possible, use credit cards rather than debit cards for your shopping. Credit cards offer better fraud protection and are not linked to your bank account. Shop Wisely and Enjoy the Holiday Season Shopping should feel joyful, not stressful. Although prices may be higher this year and scams are becoming more sophisticated, with a little preparation, awareness, and skepticism, you can save money, stay safe, and still enjoy the holidays.