With the cost of groceries going up, hosting Christmas dinner could be more expensive this year. Is it 'cringe' to ask my guests to chip in $20?

But with the rising cost of living, Alex and Jessica are second-guessing whether they can afford to serve a large gathering of family and friends this year. Between the cost of rent, utilities, student loans and groceries, the couple’s monthly budget leaves little wiggle room for basic essentials, let alone feeding a group of people on Christmas.

In a typical month, they’re spending about $7,500 on essentials, all the while trying to put some cash away in an emergency fund. This year, Alex and Jessica estimate that hosting Christmas dinner will cost around $400, which includes all of their groceries, drinks, décor and a few splurges to make the evening extra fun. As the couple crunches the numbers, they wonder if it would be too “cringe” to ask their guests to chip in $20 to $30 each.​

While this idea feels about as unsavory as eating burnt turkey, the alternatives include cutting corners or sacrificing financial security. Adding a small fee could be a practical solution, especially if friends understand the situation, right?

What’s the price of Christmas togetherness?

To critics, adding a fee to a Christmas dinner is wrong on so many levels. Not only does it fly in the face of the “giving spirit,” but it undermines the concept of hosting as a gesture of hospitality. ​

Adding a cover charge to a Christmas get-together feels awkward and transactional. And besides, guests often contribute in many other ways, such as helping with the cooking and cleaning. But the idea of charging a fee for Christmas dinner didn’t come out of a vacuum.

Supporters of this idea point out that things are getting harder for the bottom 80% in today’s K-shaped economy. For instance, food prices have increased at an overall rate of 3% in 2025, according to the U.S. Department of Agriculture (1).​

The price of food has become so much of a strain that more people are turning to “buy now, pay later” (BNPL) apps to help pay their grocery bills. According to a 2025 LendingTree survey, 25% of people now use BNPL for groceries, 14% higher than in 2024 (2). ​

It’s also likely that more hosts will have disrupted cash flows this holiday season. Whether it was the government shutdown for public employees or the one million-plus layoffs this year in the private sector (3), many Americans might not have the advantage of a reliable income this holiday season.​

For proponents of adding fees to Christmas dinner, shared contributions could promote a healthy sense of fairness, especially when everyone benefits equally from the gathering. But on the other hand, the K-shaped economy isn’t just affecting hosts. Some guests may not feel comfortable paying a fee for Christmas dinner, which could unintentionally exclude people going through tough times.

​Ultimately, choosing whether to charge Christmas guests is a personal decision, but there are other more tasteful ways to cut costs while still offering an unforgettable experience.

Tips for hosting on a leaner budget

​While talking about money can be stress-inducing, it’s even more uncomfortable to bring it up with friends during the holidays. But as difficult as it can be to start these conversations, hiding genuine financial hardship isn’t helpful.​

That doesn’t mean you need to share your entire financial situation with everyone. But, it could mean admitting that hosting is getting expensive and that any help — whether monetary or non-monetary — would go a long way in keeping the Christmas tradition alive.​