LISTEN TO SAFE 1 TALK WITH THE MONEYWISE GUYS ON THIS TOPIC!
Without a doubt, Christmas is one of the most joyous times of the year! However, it can also be stressful and expensive. Indeed, it seems every year Christmas gets more and more expensive with more and more being spent.
Well, if it seems this way there is a good reason – it’s true!
In Total, How Much is Spent on Christmas?
- Since 2008, year-over-year holiday purchasing has continued to grow – even during the pandemic.
- In 2021, holiday sales were projected to be $843 billion but reached $859 billion.
- To put this in perspective, this is more than double holiday sales in 2002 which reached $416 billion.
- To put this another way, since 2002 annual holiday shopping has increased more than 4% per year.
How Does Christmas Spending Break Down?
- Americans spendapproximately $997.73on Christmas each year.
- That’s roughly the equivalent of the median pre-tax weekly salary of$1,001.
- In other words, the average American spends about a week’s salary on Christmas gifts.
- In addition, on average Americans underestimate their Christmas spend by approximately $100, with 41% of people willing to take on debt.
- To compare this to other parts of the world:
- Canadians spend twice as much as Americans during the holiday season.
- 10% of Europeans go into debt due to Christmas shopping.
So, How is the Money Spent?
- Percentage-wise, the breakdown of how Americans spend money on Christmas is:
- 65% – Gifts for family, friends and coworkers
- 23% – Food, candy, decorations, etc.
- $6.1 billion dollars alone is spent of Christmas trees.
- 12% – Non-Gift Purchases such as travel
- Parents spend roughly $276 per child on Christmas gifts.
What Age Group Spends the Most?
- Peopleaged 45-54 tend to spend the most during the holidays. Here’s a breakdown by age group:
- 18-24 – $649.81
- 25-34 – $888.98
- 35-44 – $1,083.74
- 45-54 – $1,161.98
- 55-64 – $999.22
- 65+ – $1,077.41
- One interesting note, buying Christmas gifts for friends consistently decreases with age:
- 18-24 – 80%
- 45-54 – 71%
- 65+ – 56%
- On average,men spend almost 10% morethan women on holiday purchases.
- Men – $1,046.38
- Women – $952.03
When and How Do People Start Shopping for Christmas?
- While it varies, research has revealed the following:
- 43%of Americans begin Christmas shopping before the end of October
- 25% of Americans begin shopping before Thanksgiving
- 19% after Thanksgiving
- 2% wait until December
- So, when do the other 1% do their shopping? January, so they’re either shopping after the fact or amazingly early for next Christmas.
- More than half of Americans, 57%, shop online for holiday purchases.
- Remember the old Sears catalog? Well today, less than 5% of consumers use a catalog for their Christmas shopping.
What’s the Most Popular Gift to Receive?
- With $15.2 billion in unwanted presents purchased and one in 10 people returning their gifts to the store, gift cards are by far the most popular present to receive.
- 56% of Americans want to receive a gift card as a present in 2022.
As we know, the best things in life – walking, jogging, hiking, exercising, playing in the yard, hanging out with loved ones, conversation, worship, smiling, etc. – are free, but Christmas ain’t one of them. Preparing for Christmas is expensive and, undoubtedly, can be a very stressful time. If you feel this way, please know you’re not alone. Just relax and celebrate all the positives that come with this time of year. You can worry about your pocketbook later!
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