Key Takeaways Holiday spending is driven by a mix of nostalgia, tradition, social connection, and festive cheer, but the season can also amplify stress, loneliness, and grief, which further influence purchasing behavior. Psychological biases such as loss aversion, price anchoring, the endowment effect, the sunk cost fallacy, and present bias play a major role in shaping holiday spending decisions. Mindful spending, setting budgets, and focusing on thoughtful gifting can help