Expect more gift cards and personalized crafts under the tree this year.

Why it matters: Gift-givers are looking to stretch their dollars without skimping on holiday joy, says Claire Tassin, a retail and e-commerce analyst at Morning Consult.

State of play: Mastercard forecasts tariffs and inflation could drive more shoppers to gift cards, consistently one of the top presents.

• A $50 gift card still costs $50, even though it buys less than it did a few years ago.

What we're hearing: A gift card for somebody's favorite restaurant "still feels thoughtful" and is "a great way for folks to keep within the constraints of their budget," Tassin tells Axios.

• About 3-in-5 active holiday shoppers said they'd bought gift cards as of September, more than any other category, according to Morning Consult research.

Meanwhile, younger generations are leaning into handmade gifts.

• Money is one reason — they typically have less to spend than adults — but it also reflects a bigger shift toward hands-on hobbies like needlepoint and pottery, Tassin says.
• Christmas ornaments, simmer pots and bath bombs ranked among the top trending do-it-yourself gifts in the past month, according to Google Trends data.

Places to craft DIY gifts are getting busier nationwide: Attendance jumped 4% at knitting circles and 19% at baking classes between November 2024 and October 2025, compared with the same period a year earlier, per Eventbrite data shared with Axios.

• A new Yelp report shows a sharp rise in searches for sewing fabric stores (+3,771%), quilting supplies (+531%), tufting classes (+480%), crocheting classes (+220%) and needlepoint shops (+173%).

Reality check: Electronics, apparel and home goods, many vulnerable to tariffs, remain popular gifts.

• Adobe expects hot sellers online to include the Nintendo Switch 2, iPhone 17, Dyson Airwrap and buzzy toys like Labubu dolls.

The bottom line: People are feeling the strain, but they'll "make it work" to celebrate the traditions they love, Tassin says.

Americans plan to spend 5% less this holiday season compared to 2024, according to PwC research.

The big picture: Shoppers in the Northeast and West are projected to outspend the national average of $1,552 per person — which includes gifts, travel and entertainment.

• Northeasterners plan to increase their spending by 2% from last year, while expectations are down 16% in the West and 4% in the South (which includes Texas) and Midwest.

The bottom line: Nationwide, holiday shoppers are pulling back as rising costs and tariffs squeeze budgets.

⚽️ Texas has hired Margueritte Bates from UCLA as its new head coach of women's soccer. UT had fired its previous head coach on Monday, after the squad finished with a 4-12-1 record last season. (The Daily Texan)

🏨 The Hyatt Regency, on the south side of Lady Bird Lake, has completed a major renovation and opened new restaurants along the waterfront. (CultureMap Austin)

🏥 UT and MD Anderson Cancer Center are considering relocating their planned medical complex from downtown to Northwest Austin. (Community Impact)

🎄 The Zilker Tree Lighting Ceremony is Sunday, with pre-event music beginning at 5:15pm. (KVUE)

Microluxuries like $10 hand sanitizers and $20 lip balms are the latest flex for school kids.

The big picture: These pocket-size purchases are being "traded, shown off, and incorporated into personal brand-building," Casey Lewis wrote last month in After School, her newsletter about youth trends.

State of play: Teens and tweens say they're drawn to Touchland's candy-colored sanitizer mists (packaged in sleek rectangles) for the aesthetic and because they're less likely than gels to leak in pencil cases and backpacks.

• Owning just one usually isn't enough: "Our teacher tells us we can only have one on our desk because we all have too many," Vaida Jaunzemis, a 10-year-old in Minneapolis, told the Wall Street Journal.

Young fans similarly flaunt Rhode's Peptide Lip Treatments and Summer Friday's Lip Butter Balms — glossy tubes with names including Strawberry Glaze and Pink Sugar.

• Limited editions and sold-out drops offer extra social currency.

Reality check: Mini status symbols aren't new. Pokémon cards and Lip Smackers once filled the same role for earlier generations.

The bottom line: $10 is steep for hand sanitizer — but cheap compared to what some Labubus go for online.

Landlines are having a moment, but iPhones still reign supreme for teens.

Why it matters: 87% of teens report owning an iPhone — and 17% of them expect to upgrade to the latest model this fall or winter, according to investment bank Piper Sandler's semi-annual Teen Survey.

Yes, but: Research links a worsening youth mental health crisis to the arrival of the smartphone, which teens now spend hours using per day.

The bottom line: The new iPhone 17, which starts at $799, is a gift most teens won't turn down.