Black Friday spending expected to slow as Americans tighten budgets

This Black Friday may be a bit quieter than last year.

(CNN)- This Black Friday may be a bit quieter than last year. The National Retail Federation projects nearly 187 million people will shop between Thanksgiving and Cyber Monday — still a massive number, but lower than the near-record turnout in 2024.

With food and energy prices still elevated, many Americans are heading into the holiday shopping season with less disposable income, pushing them to hunt for deeper discounts and stick to stricter spending plans.

Finance journalist Roben Farzad says rising costs in everyday essentials are leaving consumers with very little room for splurges:
“The places where inflation’s hitting us leave very little margin for going out and blowing it on a luxury air fryer.”

To help shoppers stay on track, financial experts recommend using the “one percent rule.”
Host Nicole Lapin explains:
“Take one percent of your annual income and make that the ceiling for the entire season. If you make 70K, that’s 700 bucks for gifts, travel, food, hosting — everything.”

Lapin says shoppers should begin with their total budget before making a list, and limit the number of transactions to avoid “micro swipes” that quietly add up.
“The number of swipes or purchases is one of the easiest ways to avoid that quiet buildup,” she adds.

Research shows some retailers raise prices ahead of Black Friday, meaning not every “deal” is a real discount — but experts still say significant savings are out there.