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!
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!
Follow the 50:30:20 rule – By spending 50% of your salary on your needs and 30% on your wants, you can make sure you're not spending too much on things you don't need – and also ensure that some income is set aside as savings. Needs would include expenses on rent, mortgage, utilities, groceries, clothes etc.
The 50-30-20 budget rule states that you should spend up to 50% of your after-tax income on needs and obligations that you must have or must do. The remaining half should dedicate 20% to savings, leaving 30% to be spent on things you want but don't necessarily need.
Businesses incur expenses for operations and making sales. Controlling expenses involves managing how a business spends money by reducing expenditures, improving operational efficiency, optimizing supplier relationships, and controlling employee expenses.
Keep the receipt for anything you buy with cash in a container. An accordion file works great to keep things organized. You can also scan your receipts and store them electronically. If you didn't get a receipt then write a note to yourself about what you spent and how much it cost and file it away.
A realistic budget for Christmas gifts depends on individual financial circ*mstances. However, a common guideline is to allocate around 1-2% of your annual income for gifts.
Average Christmas spending per head in the UK 2023, by region. According to a recent study, average spending per head during the Christmas period in 2023 is expected to vary between just below 700 British pounds in North East to around 973 British pounds in London in the United Kingdom (UK).
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Introduction: My name is Ray Christiansen, I am a fair, good, cute, gentle, vast, glamorous, excited person who loves writing and wants to share my knowledge and understanding with you.
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