Value-driven gifting grows as economic fears rise

A recent study finds 57% of Americans expect the economy to weaken within the next six months, the most negative economic outlook since 1997. As inflationary pressure lingers and consumer confidence dips, more Americans skip mass-produced goods for homemade gifts that feel personal, affordable and meaningful. Holiday budgets tighten, but creativity booms, as people plan to make DIY presents to stretch their dollar.

Homemade no longer just means handcrafted scarves or baked goods. It suggests a broader value shift toward thoughtful, resourceful giving and a growing belief that connection, not consumption, defines the holidays.

Economic fears drive smarter, simpler giving

The 2025 holiday season arrives under a cloud of caution. A 2025 survey reports 77% of Americans expect higher prices on holiday goods. Confidence has slipped across nearly every income group, and shoppers are preparing to scale back. Overall spending will drop 10% year-over-year to an average of $1,595, with younger generations pulling back the most. Gen Z plans to reduce their spending by 34% and millennials by 13%, signaling a sharp generational shift toward restraint.

Rather than cut the season short, many adapt. Shoppers get strategic as prices stay high and budgets shrink. Data show that 7 in 10 consumers engage in at least three value-seeking behaviors, including hunting for deals at 89%, trading down on brands at 77%, reusing or regifting at 73% and making DIY presents at 49%. Nearly half say they plan to craft or create their own gifts this year, proof that thrift and creativity have replaced extravagance as the new markers of generosity.

“I’ve always loved giving DIY gifts, but this year it feels especially meaningful,” shares Shelby Stover of Fit as a Mama Bear. “With the economy so tight, my family and I agreed we’d rather exchange thoughtful, quality gifts instead of focusing on quantity. Each of us took the time to make or personalize something unique, and it’s turned gift-giving into something more intentional and creative. Plus, it helps us all save a little money at a time of year we need it most.”

A holiday spending poll backs up this sentiment. While total spending isn’t collapsing, more shoppers search for value and focus more on meaningful gestures over material ones.

From store-bought to story-bought

For many, the most meaningful gifts this year won’t come from a mall or online cart but will carry a story. As economic pressures reshape priorities, people find satisfaction not in how much they spend, but in how much thought they put behind each present. The shift is clear: gifts that tell a story, hold sentimental value or reflect time and creativity have become the new measure of generosity.

“Homemade gifts are the most meaningful, even when money isn’t tight. When it is, they just make sense,” reflects Ashley Wali of Wanderlux. “My family did a homemade gift challenge one year, and it is our most memorable to date. I received a hand-stitched piece of art I still display. I produced a musical recording of my dad’s favorite holiday songs. Just because a gift doesn’t cost much doesn’t mean it doesn’t have lasting value.”

Last year’s data report that 36% of buyers prefer personalized gifts. Another 46% say they are more likely to choose eco-friendly options.

“We haven’t bought traditional gifts for years,” shares Beth Neels of Binky’s Culinary Carnival. “We give each other homemade gifts- a jar of their favorite spicy nuts or their favorite jam. It’s so much more personal, and they last a lot longer. One year, I did a calendar with favorite monthly pizzas and tacos for the kids. They looked forward to the flavor of the month all year, and it cost next to nothing!”

Adapt value-driven gifting

If you’re rethinking how to give this season, you can choose from various Christmas gift exchange ideas that align with value-driven gifting. A handwritten letter, framed photo or even a DIY advent calendar for adults can mean more than a store-bought gift. It shows time, care and connection.

You can also gift an experience: cook a meal together, plan a game night while sipping eggnog or offer a day out coupon. Shopping small or local is another way to give with meaning; support artisans, makers or thrift stores where gifts come with character and a human story behind them. Regifting can be just as thoughtful when done creatively; reusing books, accessories or decor that still have life in them, especially when you add a personal touch or story, turns old into intentional.

Finally, bundle meaning, not money: pair a homemade treat like Christmas cookies with a heartfelt note or small practical gift. It’s the thoughtfulness, not the price tag, that truly resonates.

Redefine holiday generosity

Even with tighter budgets and economic uncertainty, people embrace value gifting, a shift toward giving with intention rather than excess. It’s not just about handmade presents but about thoughtfulness, practicality and meaning. Whether it’s a small local purchase, a shared experience or something made by hand, value gifting reminds us that what matters most can’t be measured by cost, but by care.

Jessica Haggard is the creator of the blog Easy Homemade Life. She inspires and supports homemakers with easy recipes, natural home cleaning tips and DIY tutorials for personal care products to promote a happy and healthy home environment.