One survey found that with inflation peaking Americans plan to spend about 23% less this holiday season; people will give their pets more gifts than their in-laws
A survey of holiday spending from Personal Capital, the wealth management company, shows that the average holiday shopping budget is down about $200 (23%) from last year, mainly due to inflation and the economic downturn.
To cover December expenses, 47% of respondents said they would cut back on meals out and other non-essential purchases, an increase of 9% over 2021. Ultimately, 37% of people will spend $250 or more. less in their gifts this year, with 16% saying they will spend less than $100.
However, American consumers will prioritize their pets, as according to the survey, 34% will buy a gift for their dog compared to 19% who will buy gifts for their in-laws. In addition to that 22% of cats will also receive gifts, while teachers were the least likely on the list to receive a gift at 7%.
The survey notes that some are turning to crafts, with 45% of respondents giving DIY and second-hand gifts (although the most popular category was gift cards at 52%).
On the other hand, a quarter of Generation Z and Millennials, more than any other generation, say they will be giving gifts this year.
Those who aren’t shopping for a bargain at the local thrift store say they’ll turn to e-commerce sites: 34% of Americans said they’ve increased their online shopping, motivated by free shipping (79%) and speed (77%), which prevailed over environmental impact (18%).
The gifts that Americans plan to give:
– Practical gifts such as cards, 52%
– Cash, 24%
– Slippers and/or socks, 24%
According to the survey, 73% said they’d love to find the perfect gift for someone, but nearly a quarter of people (23%) said they’d end up buying something “mostly for me”. More than half say they enjoy Christmas shopping in general, although 35% of people say they will be doing home-cooked food and gifts this year.
Across all generations, 31% of Americans are looking to boost their emergency fund in the New Year, and another 27% said they plan to get their finances in order by 2023.
“While you may be inclined to set January 1 as a target date to start following a budget, paying attention to where your money is going now will help you feel more secure about your finances and ready to take on any money resolution you make. for the future,” said Kyle Ryan, executive vice president of advisory services at Personal Capital. “Americans need to keep these future goals in mind when shopping for the holidays.”