Many Americans will be skipping or cutting back on holiday gifts this year as they continue to struggle against inflation, according to a recent survey.
While inflation is cooling, it is continuing to squeeze budgets, causing some Americans to rethink their gift-giving traditions. About 34 percent of respondents are choosing to skip presents altogether due to financial pressures, according to WalletHub's 2023 holiday shopping survey.
"I've always loved the holiday spirit, but this year we had to make tough choices," Emily, a 42-year-old Chicago teacher, shared with Newsweek. She asked to have her last name withheld.
She explained that there will be fewer gifts under the tree for her two children and admitted the gifts she usually buys her students will be replaced with handcrafted cards with personalized notes of encouragement. The teacher added that she is doing what she can "even if it's not through physical presents."
And Emily isn't alone. Half of Americans will buy fewer gifts for their children, according to WalletHub.
Debt Lingers From Last Year's Holidays
The lingering effects of last year's spending are still felt by many. The WalletHub survey indicates that nearly one in four Americans are still paying off holiday debts, leading to more cautious spending this season.
"Last year left us with a hefty credit card bill," Emily said, but noted she was able to pay off holiday debts by the spring season.
The survey also found that about 19 percent of people will apply for a new credit card to help with holiday shopping, a sign of the financial juggling act many are facing. To that end, a growing number are choosing to spend less, with 28 percent planning to reduce their holiday budget compared to last year.
More than one in three shoppers are now opting for experiences with loved ones over traditional gift exchanges, NerdWallet's 2023 holiday shopping report found. About 30 percent of holiday shoppers are leaning towards receiving fewer gifts, and nearly a quarter are setting spending limits with friends and family.
"Social media usually tempts me to splurge, but this year is different," Austin Scarpelli, a student at University of Illinois Chicago previously told Newsweek.
The trend of spending less or not at all is expected to extend through the holiday season, with roughly 75 percent of Americans planning to cut back on non-essential expenditures in the next six months, Newsweekpreviously reported.
Charitable giving, another holiday staple, is also impacted by inflation, WalletHub found, with nearly half of the respondents saying it will affect their donations.
As shoppers navigate the altered holiday landscape, some, like retired couple James and Linda Foster from Tennessee, find the changes liberating. "We're not buying gifts for family this year. Instead, we're donating what we can to those in need. It feels right, given the circ*mstances," James said to Newsweek.
The 2023 holiday season is set against a backdrop of financial recalibration. As Americans adapt to the economic climate, the essence of the holiday spirit endures in new forms, with some focusing less on material gifts and more on meaningful experiences and connections.
While inflation is cooling, it is continuing to squeeze budgets, causing some Americans to rethink their gift-giving traditions. About 34 percent of respondents are choosing to skip presents altogether due to financial pressures, according to WalletHub's 2023 holiday shopping survey.
Nearly 104 million people will drive to their holiday destinations, an increase of 1.8% compared to 2022. H o-ho-however you get from A to B over the holiday season, you won't be alone. Airports and especially roads will be slightly more crowded between Christmas and New Year's compared to last year.
Americans' holiday spending between November 1 and December 24 surged 3.1 percent from last year, but spending for the same period in 2022 was up more than 7 percent from 2021, according to a new report from Mastercard.
Clearpoint, the credit-counseling nonprofit, suggests a simple target for holiday budgeting: Plan to spend 1.5% of your annual income. For a family that earns $75,000 a year, that works out to $1,125. Sliding buttons allow you to allocate shares of the total to gifts, parties, travel, donations and food.
A little over a third (34%) of Americans went into debt this holiday season, down slightly from 35% in 2022. Most notably, those who took on debt are in the ho-ho-hole by an average of $1,028 this holiday season — a massive 34% decrease from last year's record $1,549, and the lowest since 2017.
"But, many don't realize the busiest travel period of the year is the week between Christmas and New Years." AAA estimates about 55 million Americans travel over 50 miles from home for the Thanksgiving holiday compared to nearly 120 million traveling during Christmas and New Year's Day.
In 2022, the busiest air travel day leading up to Christmas was Wednesday, Dec.21. On that day, 2.4 million people passed through TSA security checkpoints, marking the single busiest day in the 7 days ahead of Christmas.
The average employee in the U.S. receives an average of 7.6 paid holidays. Though the national average is 7.6, statistics show that 21% of U.S. employees receive six paid holidays per year.
According to the National Retail Federation (NRF), the average American plans to spend $826 in 2022 on Christmas gifts, food, and decorations. Of that $826 dollars, around 500 are spent on gifts for family members. The most popular of these gifts are clothing, toys, and gift cards.
One-in-10 U.S. consumers are planning to celebrate the holidays in 2025 due to high costs. Nearly two-thirds of U.S. consumers say that high prices will impact their holiday spending, while a small chunk of consumers plan to delay holiday season celebrations.
It is estimated that 8% of people overall will be spending Christmas alone this year, which is up from 4% last year. 14% of over 65s will be alone at Christmas this year, up from 7% in 2019. Only 23% of adults have said they will be with their parents on Christmas Day, 12% lower than last year.
Christmas is one of the favorite national holidays in the United States. It is celebrated on the 25th of December, as Christians celebrate the birth of Jesus. Approximately 85 percent of Americans celebrate Christmas.
Christmas is typically the largest economic stimulus for many nations around the world as sales increase dramatically in almost all retail areas during this time. In 2023, total holiday retail sales were projected to have reached new highs of 957 billion U.S. dollars.
Financial concerns were most often cited as a cause of stress during the holidays, with 58% of U.S. adults saying that spending too much or not having enough money to spend causes them stress. This was followed by finding the right gifts (40%) and the stress of missing family or loved ones during the holidays (38%).
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