BMO Survey: U.S. Latinos plan to spend more on the holidays this year

• Latinos plan to spend an average of $2,218 on holiday expenses, with 95% dedicating funds toward holiday-related purchases – 16.6% more than the U.S. average. 
• The latest BMO Real Financial Progress Index reveals Latinos are gearing up to spend more this holiday season, while other Americans, in general, are planning to decrease their spending. According to the new survey data, Latinos are more likely than other ethnic groups to spend on gifts, entertainment, decorations and travel. One in four Latinos (27%) are more likely to spend more this year compared to their non-Hispanic counterparts. 

“For many Latinos, the holidays are a cherished time that brings together culture, family, and faith. Whether gathering in multigenerational homes or celebrating with traditional posadas, it’s a season marked by joy and generosity, despite challenges like inflation. At BMO, our goal is to empower Latino families with financial planning tools so they can align their spending with their goals and make real financial progress.” 

– Lizzy Diaz-Ortiz
Senior Manager of Latino Banking Segment, BMO 

Launched in February 2021, the BMO Real Financial Progress Index is an indicator of how consumers feel about their personal finances and whether they are making financial progress. The Index aims to spark dialogue that will help consumers reach their financial goals and humanize a topic that causes anxiety for many—money. Other findings include: 

1. Financial optimism is nuanced

According to the Index, 78% of Latinos report a sense of financial optimism, similar to Asian Pacific Islanders but significantly outpacing non-Hispanic whites (71%). While Latinos feel more inclined to make major purchases without compromises, they also report heightened levels of financial anxiety compared to a year ago. 

2. Latinos prioritize holiday traditions despite financial concerns 

Amid rising financial challenges, Latinos remain steadfast in their commitment to holiday traditions, balancing optimism with practical budgeting. On average, they plan to allocate $2,218 towards holiday expenses this season, including: 

• $1,069 on travel to see loved ones 

• $650 on holiday gifts 

• $429 on entertaining 

• $294 on decorations 

While more than 95% of Latinos plan to spend on holiday-related expenses, 37% have reduced their savings for major purchases – down from 47% last year, which is indicative of carefully balancing cultural celebrations and financial goals. In addition, the aspiration of homeownership remains strong, with many continuing to save for a future home. This balance highlights the importance placed on both family traditions and long-term financial stability. 

3. Savings accounts and credit cards are the preferred form of payment.

With the holiday season approaching, Latinos are carefully considering their payment options, balancing the desire to celebrate with intentional financial decisions. A significant portion of Latinos plan to rely on debit cards and savings accounts, with increased use of buy-now-pay-later services compared to last year. 

• 55% of Latinos will use debt including credit cards and buy-now-pay-later services to pay for holiday gifts. 

• 18% of Latinos plan to use a savings account, which is significantly higher compared to non-Hispanic counterparts (10%) and Black (11%) groups. 

4. Amid optimism about future spending, Latinos are adjusting their financial resolutions for the New Year

Nearly half of Americans report that cost-of-living concerns affect their financial resolutions for the New Year. In fact, 54% of Latino respondents have adjusted their financial resolutions due to rising living costs in Q4’24, down from 61%. 

And yet, Latinos exhibit strong optimism, being the most likely among ethnic groups to make major purchases without compromises. Fewer Latinos (31%) reported minimizing spending in the new year, compared to 41% last year. 

As conditions evolve, the Index reveals that Latino families are optimistic about their financial future, prioritizing savings accounts and credit cards to manage holiday spending while planning for long-term goals. 

To discover how BMO can support Latino families in making real financial progress, visit BMO.com.