More Than 1 in 3 Parents Say Their Kids’ Holiday Wish Lists Exceed Their Budget, New Cash App and Afterpay Report Finds

The True Cost of Holiday Magic reveals parents are planning as early as September to avoid a New Year’s financial hangover, with many budgeting earlier, capping gifts, and using financial tools to manage the season 

Cash App and Afterpay today released The True Cost of Holiday Magic: How Parents Are Planning, Prioritizing & Adapting to Holiday Financial Pressure, a new report examining the financial, logistical, and emotional work parents take on to make the holidays happen.

The report reveals the Holiday Magic Tax: the hidden financial and mental cost parents absorb to make the season feel magical for everyone else. That cost often extends beyond the holidays, with nearly one-third of parents, 32%, expecting it to take three months or longer to financially recover from holiday spending. It also shows up in the work required to manage the season, as 20% of parents say tracking the budget and spending consumes the most mental energy among holiday planning tasks.

That pressure is especially clear when it comes to children’s gifts. More than one-third of parents are experiencing Wish List Inflation, with 36% saying their children’s expectations somewhat or significantly exceed what they plan to spend. This is leading to Holiday Imposter Syndrome as parents feel significant pressure to preserve the magic of the season: 53% feel guilty if they don’t spend enough on their kids, while 50% feel guilty if they can’t get everything on their children’s wish lists.

The report also reveals a gap in how holiday responsibilities are experienced within households. Eighty percent of fathers say they are satisfied with how holiday responsibilities are divided, compared with 63% of mothers. At the same time, fathers are more likely to say they need support taking on more of the planning, pointing to a potential Dad Confidence Gap: 26% of fathers vs. 16% of mothers cite wanting more confidence in their own gift-picking or planning. 

"Parents should talk about money long before they need to, not when they’re already in the checkout line,” said Lindsay Bryan-Podvin, Cash App and Afterpay's Financial Therapist. “That means agreeing on how much you plan to spend, how responsibilities will be divided, and who is owning each piece of the season, from travel to gifts. For co-parents especially, skipping those conversations can add more stress. The gender differences in the data suggest that some dads may want to take on more holiday planning, but need more confidence or clarity to do so. A simple conversation about the budget, the options, and the decision-making guardrails can help both parents feel more aligned and make the next planning decision easier."

As families adapt, many are setting clearer limits to keep holiday planning manageable. That can be especially important for single and divorced parents, who are more likely to personally handle the gift lists, budgets, price comparisons, and purchase logistics that make the holidays happen. Across parents overall, over a quarter, 28%, are capping the number of gifts exchanged within the family, a sign that families are looking for ways to preserve holiday traditions while staying closer to budget.

Parents are also using financial tools and tactics to manage the season more intentionally. Twenty-six percent use P2P apps to collect and coordinate money for holiday expenses, and another 26% plan to use BNPL for holiday purchases. Economic pressure is also influencing payment behavior, with 22% saying they adopted BNPL in response to economic pressure this year. Younger parents are especially open to flexible payment tools: 34% of Gen Z parents would consider Afterpay, compared with 27% of Millennials and 19% of Gen X.

“Financial tools work best when they reduce stress while letting you keep control. Families should look for options that make it easier to share or coordinate expenses, and consider flexible payment options to create more breathing room during the spendier holiday season. It’s never too early to bring kids into age-appropriate conversations about money and the tools you use to manage it, not just during the holidays, but year-round,” said Bryan-Podvin. 

As families navigate rising costs, expanding gift lists, and the pressure to preserve holiday magic, the report points to a more intentional approach to the season. Cash App and Afterpay can support different parts of that process, from coordinating money for shared expenses and setting savings goals to providing greater visibility and flexibility around purchases.

The True Cost of Holiday Magic report is available here.

Methodology

Morning Consult’s Afterpay Holiday Parents Survey (September 2026) was conducted between September 1st – 10th, 2026 among n=2,000 parents, step-parents, legal guardians, or primary/co-primary caregivers of children under the age of 23 in the U.S. All interviews were conducted online. The margin of error was +/- 2% for the full sample and varied among subgroups. All subgroups highlighted in reporting have a base N of 50 or more unless otherwise stated; findings on financial collaboration with a partner or co-parent are based on parents who have one (n=1,384), and select self-care questions are based on subsets of n=1,340–1,520 as noted in the topline.

This wave surveyed parents and caregivers specifically, rather than the general adult shopper population and retail decision-makers covered in the 2025 wave. Findings reflect a different, narrower universe, and comparisons framed as “compared to last year” reflect respondents’ own recall rather than a matched year-over-year tracking sample.

Definitions for Coined Terms

• The Holiday Magic Tax: The hidden financial and mental cost parents absorb to make the holidays feel magical for everyone else. 
• Holiday Imposter Syndrome: The feeling that everyone else is pulling off a bigger/better holiday, fueled by social comparison and pressure around what other parents spend. 
• Wish List Inflation: When kids’ expectations outpace what parents have budgeted. 
• The Dad Confidence Gap: When dads want to take on more holiday planning, but need more confidence, clarity, or shared direction to do so.

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