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Even as Americans worry about prices, jobs, and the economy, many are still expected to spend on gifts this Christmas

• Holiday spending is expected to stay strong despite ongoing concerns about inflation, jobs, and the economy, as many shoppers continue to prioritize gift buying.

• Higher-income households are expected to drive much of this year's holiday sales, while many lower- and middle-income consumers are making everyday budget trade-offs to keep spending in check.

• Retailers won't all fare the same, with beauty and apparel expected to perform well, while some mid-range department stores and home-related categories could face greater challenges.

Before the holiday shopping season kicks into high gear, many Americans are feeling conflicted about their finances.

Concerns about inflation, the job market, and the broader economy remain high, but those worries haven't translated into a major pullback in spending. In fact, retail sales have stayed surprisingly strong, raising an important question: Will anxious consumers continue opening their wallets this Christmas?

According to new research from Coresight Research, the answer may be yes. While shoppers are likely to stay price-conscious and hunt for deals, many still plan to make holiday spending a priority a trend that could shape this year's retail season.

ConsumerAffairs spoke with John Mercer, Head of Global Research at Coresight Research, who offered insight into why consumer confidence and consumer spending aren't moving in the same direction and what that could mean for shoppers this holiday season.

Budgeting trade-offs

One way to ensure holiday spending remains at high levels: day-to-day tradeoffs. Its not uncommon for many consumers to make tough budgeting decisions in the months leading up to the holidays.

We are seeing evidence of consumers on modest incomes make trade-offs in grocery, Mercer said. For example, Albertsons recently reported that it was seeing lower-income customer segments pull back most significantly, exhibiting softness in both units and overall basket sizes. Conversely, it saw higher-income customer segments demonstrate greater spending resilience.

This aligns with Coresight Research data that show close to three in five (57%) U.S. consumers are engaging in trading-down behavior in grocery (such as switching to cheaper brands, cheaper retailers or private labels/store brands).

High-income consumers are contributing the most

Coresights research also found that high-income consumers are driving the charge behind much of the expected holiday shopping thats anticipated this coming season.

Higher-income consumers remain the primary growth engine for retail, Mercer said. In our June 2026 consumer survey, 38.8% of households earning $100,000+ expected to spend more on holidays versus only 25.0% for the $50,000$99,999 bracket. The net proportion (more minus less) expecting to spend more was 18.2% for $100k+ households versus (1.9)% for $50,000$99,999 households.

Higher-income consumers remain the most bullish despite broader economic concerns. Coresight Research weekly sentiment data confirm that forward-looking personal financial sentiment remains correlated to income our weekly demographic breaks show $100k+ consumers as the most confident.

How the economy can affect retailers this holiday season

Should economic pressures continue to mount, some categories could be affected more than others when it comes to holiday shopping

Positively, beauty is experiencing strong cyclical growth, since early 2025, Mercer said. And apparel and footwear is experiencing a GLP-1 tailwind (wardrobe renewal) and is a key beneficiary of higher tax refunds, and tends to be a priority category when consumers receive windfalls like this. Big-ticket is weaker, and home-related categories are exposed to the housing market, which in turn is seeing elevated mortgage rates dampen housing transactions.

On the other end of the spectrum, mid-range department stores could be especially vulnerable.

Retailers such as Kohls are exposed to middle-income shoppers who can easily migrate to lower-price channels, Mercer said. Once consumer spending migrates to value alternatives, we believe legacy mid-range/full-price retailers struggle to regain that in full.

Over the medium term, the traditional supermarket channel is losing share in grocery to nontraditional grocery retailers such as warehouse clubs, mass merchandisers, and discount retailers we would expect any increased economic pressure to amplify this trend (as supported by Albertsons commentary, noted earlier).

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A new survey suggests rising costs and economic uncertainty are keeping budgeting a top priority

• Fewer Americans are living paycheck to paycheck: Just 48% say they're living paycheck to paycheck, down from 69% last year and the lowest level in five years.

• Budgeting is more important than ever: Despite the improvement, 95% of Americans say rising costs and economic uncertainty have made sticking to a budget a necessity.

• Experts say now is the time to prepare: Financial experts recommend creating a budget and paying down high-interest credit card debt before the economy faces its next major shift.

After years of rising prices and economic uncertainty, there's finally a bit of encouraging news for household finances: fewer Americans say they're living paycheck to paycheck than they have in the past five years. But that doesn't mean people are feeling financially secure.

A new survey from Debt.com found that while the number of Americans living paycheck to paycheck has dropped significantly, nearly everyone still feels pressure from higher costs and an unpredictable economy.

ConsumerAffairs spoke with Howard Dvorkin, CPA and chairman of Debt.com who explained that budgeting remains one of the best tools consumers have not just for getting through today's challenges, but for preparing for whatever comes next.

Methodology

Debt.com's ninth annual Budgeting Survey polled 1,051 U.S. adults ages 18 and older from all 50 states and Washington, D.C. Participants answered 13 questions about their budgeting and spending habits, with responses collected through SurveyMonkey.

Here are some of the key survey findings:

• 48% of Americans say they're living paycheck to paycheck, down from a record 69% in 2025, and the lowest level since Debt.com began tracking the measure in 2022.

• 95% of respondents said economic uncertainty and rising living costs have made budgeting more important than ever.

• 85% of Americans currently keep a budget.

• 88% of those who do say budgeting has helped them get out of debt or avoid it altogether.

• Among people who don't budget, the most common reason has shifted from not having enough income to simply feeling that budgeting is too time-consuming.

After years of growing financial pressure, Americans forced themselves to adjust, tighten their belts, and rethink their spending, Dvorkin said. They didn't get a break from inflation, so they learned how to budget through a crisis.

The fact that 95% say budgeting is more important than ever proves that consumers have adopted a permanent crisis-budgeting mindset. But make no mistake 48% is still nearly half the country running on a financial tightrope and living paycheck-to-paycheck.

Starting a budget today

With nearly 90% of survey respondents saying that budgeting has helped them in substantial ways, Dvorkin shared some of his best tips for consumers looking to get started today.

Budgeting has never been easier, because you dont even need to do the math anymore, he said. Im old, and back in the dark ages before the millennium, you had to put pencil to paper and use a clunky calculator to create a monthly household budget.

These days, there are dozens of free apps that do the heavy lifting for you. They all allow you to enter your expenses, and they do the math. These days, there's literally no excuse not to budget.

Preparing your finances

Given that economic conditions are uncertain, being prepared is consumers best tactic. Dvorkin shared a few ways for consumers to prepare their finances for any future situation.

If you want to recession-proof your finances, shed your credit card debt, he said. Theres no higher interest rate youll pay in the course of daily living. Right now, the average credit card is charging around 20% interest, which means youre handing $1 to your credit card issuer for every $5 you charge.

Of course, its easy to say, pay off your balances. Doing it can be a chore. So you should call a nonprofit credit counseling agency and get a free debt analysis over the phone. After the intensive deep dive, your counselor will give you a menu of options that can slash those balances. The time to call is now, before the economy takes its next inevitable turn. Youll have more options today than you will then.

New survey suggests sharing money may be the relationship milestone that matters most for many couples

• 31% of partnered Americans say merging finances feels more meaningful than getting engaged or married, according to a new survey from Tawkify.

• Millennials are the most likely to view combining finances as a major relationship milestone, reflecting changing attitudes toward commitment and financial security.

• Relationship expert Brie Temple says successful financial conversations are built on trust, shared values, and clear communicationnot necessarily on whether couples choose joint or separate accounts.

For generations, getting engaged or married has been seen as the ultimate sign of commitment. But for many couples today, another milestone may carry even more weight: combining finances.

A new survey from Tawkify found that nearly one-third of partnered Americans say merging their money feels more meaningful than marriage or an engagement, reflecting changing views about what it means to build a life together.

ConsumerAffairs spoke with Brie Temple, Chief Commercial Officer and Chief Matchmaker at Tawkify who explained that the findings highlight the growing importance of having honest conversations about money as couples navigate major life decisions.

Survey methodology and key findings

The findings are based on a survey of 1,009 partnered Americans currently in romantic relationships. Conducted in May 2026, the survey included respondents from a range of generations, genders, relationship lengths, and regions across the U.S.

Among the most notable findings, 31% of respondents said merging finances feels more meaningful than getting married or engaged. Millennials were the most likely to share that view (34%), while baby boomers were far less likely to agree (17%).

The survey also found that 29% of people had assumed their partner did or didn't want marriage without ever discussing it.

More broadly, while 80% of couples believed they were on the same page about their future together, 39% said they later discovered they weren't as aligned as they had thought.

The trust factor

Temple said that the trust involved with merging finances is likely the driver behind this key survey finding.

One of the most crucial steps in which couples become partners is the merging of their finances, she said. For most couples, this step requires more trust in each other than engagement or even marriage itself. Merging finances requires trust in the future of your partner, sharing values and decisions, and being willing to face everything together.

Now, instead of traditional milestones like weddings, more and more people choose to base their commitment on the routine responsibilities that they share. Marriage still means a lot for many people, however, successful management of finances reinforces that couples can have a bright future.

The generational gap

Temple also discussed the generational gap behind this finding, with 34% of millennials and just 17% of baby boomers agreeing that sharing finances was more impactful than engagement or marriage.

Millennials have grown up in an era where financial security is a more difficult thing to attain, she said. Between increased levels of student debt, skyrocketing home prices, and an uncertain economy, millennials have realized that creating a happy relationship involves not only being romantically compatible, but also financially compatible. Therefore, discussions regarding finances tend to be held early and take priority over their predecessors.

Another generational factor here: millennials are doing relationships differently than earlier generations.

Instead of dating, getting engaged and then settling down, many millennials are living together, sharing expenses, and even discussing financial aspects of life before they decide to get married, Temple explained. In such circumstances, when two people have already started living with each other, it makes sense that they consider combining their finances as a more important step compared to marriage itself.

How to talk about merging finances

For couples looking to merge their finances for the first time, Temple shared some of her best advice.

Before any couple gets together in terms of joint bank accounts, they need to be cohesive in terms of expectations, she said. The critical discussion will not be about how you want to organize your money, but rather where your money is going.

Once you know what you both value, it will be easy for you to find which financial organization works better for you. It does not really matter whether you choose a joint budgeting plan, separate budgets, or something in between, the key factor here is that both of you feel comfortable, listened to, and included in the discussion.

The state says the company offers unlicensed sports and event betting

By Mark Huffman of ConsumerAffairs

• New York has sued prediction-market operator Kalshi, accusing it of offering illegal, unlicensed gambling in the state.

• The lawsuit alleges that Kalshi allows people ages 18 to 20 to participate, even though New York requires mobile sports bettors to be at least 21.

• State officials are seeking restitution for affected consumers, forfeiture of alleged illegal gains, and fines totaling three times those gains.

New York has filed a lawsuit against KalshiEX, alleging that the company is operating an illegal gambling business under the guise of a federally regulated prediction market.

Gov. Kathy Hochul and Attorney General Letitia James announced the lawsuit, saying Kalshi has made its website and mobile app available to New Yorkers without obtaining a license from the New York State Gaming Commission.

Kalshi allows customers to buy contracts tied to the outcomes of future events. Its markets cover subjects including sports, elections, and popular culture. A contract generally pays out if the event predicted by the customer occurs.

The company launched in 2021 and began offering what it calls sports trading in 2025. Kalshi has maintained that its event contracts are financial products rather than conventional wagers.

New York officials reject that distinction.

No matter what they call themselves, prediction markets like Kalshi are gambling platforms, plain and simple, James said in announcing the case.

The allegations have not yet been proven in court, and the lawsuit represents New Yorks account of Kalshis business practices.

State says Kalshi lacks a gambling license

According to the New York attorney generals announcement, Kalshis contracts meet the states definition of gambling because customers put money on uncertain events that are outside their control or depend on chance.

The state alleges that Kalshi did not obtain the required gaming license or comply with obligations imposed on licensed casinos and mobile sportsbooks. Those obligations include consumer protections and the payment of taxes that help support public schools, youth sports, and programs addressing problem gambling.

New Yorks lawsuit seeks a court order preventing Kalshi from continuing to operate as an unlicensed gambling business in the state.

Officials are also asking the court to require Kalshi to return money to consumers who were harmed, surrender revenue earned through its allegedly illegal activities, and pay fines equal to three times those gains.

Underage gambling concerns

A central concern raised by the state is Kalshis reported minimum customer age of 18. New York requires customers to be at least 21 to participate in legal mobile sports betting.

The attorney generals office said making prediction markets available to people between 18 and 20 exposes younger consumers to financial losses and an increased risk of developing gambling problems.

New Yorks gambling laws protect children from underage betting and help combat gambling addiction, James said.

The case follows an October 2025 cease-and-desist demand from the New York State Gaming Commission, which accused Kalshi of operating an unlicensed mobile sports wagering platform.

New Yorkers can check whether a gambling service is authorized through the Gaming Commission. Suspected gaming fraud or misconduct can be reported anonymously to the attorney generals office online or by calling 1-800-771-7755.