Person holding Christmas wrapping paper rolls. — Holiday shopping isn’t just about gifts. Many people may not consider the cost of gift wrapping materials, decor and party supplies. (Bham Now)

Despite the joy of the holiday season, it can come with some stress and financial strain for many folks. Between buying gifts, party supplies, decor, traveling and tickets to holiday events, the costs can add up.

WalletHub, a personal finance company, determined the recommended maximum budget for someone living in cities across Alabama, and the results are across the board – ranging from less than $800 to nearly $2,600 for 2025.

The study considered five key metrics:

Income
Age
Debt-to-income ratio
Monthly income-to-monthly expenses ratio
Savings-to-monthly expenses ratio

Here are how seven of Alabama’s largest cities stacked up against one another.

2026 holiday budget for each Alabama city

The WalletHub study measured 558 cities across the U.S., and seven Alabama cities made the cut: Birmingham, Hoover, Dothan, Huntsville, Montgomery, Tuscaloosa and Mobile.

Hoover topped the list of Alabama holiday budget recommendations, coming in at a whopping $2,565. Birmingham, on the other hand, is just under $1,000 at $965 — this makes sense, considering the difference in median income.

This year, holiday sales in the U.S. are expected to rise between 3.7% and 4.2% to more than $1 trillion, according to Wallet Hub.

Black Friday spending for 2026 was also up 9.1% compared to last year, reaching a record $11.8 billion — much of this shopping is considered to be part of holiday spending since consumers buy gifts and holiday decor.

Despite this increase, Americans are still facing a growing affordability crisis. Almost everything — from groceries to medical services — has seen a price increase in the last five years, and it’s likely that most folks in the Birmingham area have seen the impact of that in their wallets.

Holiday shopping doesn’t necessarily have to break the bank. Take a look at some of our holiday guides, which include local shopping recommendations, free holiday celebration events and more:

Where are you doing the bulk of your holiday shopping this year? Let us know by tagging us @bhamnow on Instagram and Facebook!

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