Americans Cutting Back on Christmas Gift-Giving Amid Economic Challenges
In light of ongoing inflation challenges, many Americans are reevaluating their holiday spending habits, as indicated by a recent WalletHub survey for 2023. Approximately one-third of those surveyed are considering not giving gifts at all due to financial strain. Emily, a teacher from Chicago, represents this trend as she plans to scale back on gifts for her children and replace her usual student gifts with handmade cards.
The survey highlights that 50% of American parents will reduce the number of gifts for their children, and about one in four are still paying off debts from last year’s holiday spending. This has led to more cautious spending practices for the upcoming season.
An interesting finding is that nearly 20% are contemplating opening new credit cards for holiday shopping, underscoring the financial balancing act many are facing. There’s a noticeable shift towards reduced holiday budgets, with 28% of people planning to spend less than last year.
Emphasizing experiences over material gifts, more than a third of shoppers are opting for meaningful activities with loved ones, as found in NerdWallet’s 2023 report. Additionally, a significant portion of holiday shoppers are inclined towards receiving fewer gifts, and many are agreeing on spending limits with friends and family.
The tendency to cut down on spending is likely to persist, with three-quarters of Americans planning to reduce non-essential expenses in the coming months. This economic situation is also impacting charitable giving, with nearly 50% indicating that their donations might decrease due to inflation.
Some individuals, like the Fosters, a retired couple from Tennessee, are finding a sense of freedom in these changes. Overall, the 2023 holiday season is marked by a shift in financial priorities, where the focus is moving away from material gifts to fostering deeper connections and experiences.