By: Brenna Murphy
Christmas has been the largest commercial holiday in the United States undoubtedly and the best season for retail business. This post-Thanksgiving holiday leaves many shoppers feverishly searching for the perfect gifts for their loved ones. More and more businesses are willing to face the odds to drag in more sales during this time and customers are reciprocating this by increasing their spending on presents, decorations, and parties.
In 2008, a devastating recession hit the United States, and holiday costs dropped significantly due to the high unemployment rates. During this time, “the average American spent 29% less on Christmas gifts than in 2007” (finance.yahoo.com). Since this time, the economy has slowly begun to recover, and spending has gradually increased. Now, in 2013, the average American is spending an average of $801 on presents, roughly 53% more than in 2008. Also, on average, families will spend roughly $42 on a Christmas tree, $47 on decorations, $27 on Christmas cards, and $100 on food/candy (businessinsider.com). Here is a website that further describes the many prices of Christmas:
http://visual.ly/how-much-do-americans-spend-over-christmas
more items for the cheaper prices. This eventually will begin to add up, and soon enough, families will be spending vast amounts of money on Christmas presents. While this can appear overwhelming, “many Americans may be more willing to spend this year after years of scrimping” (finance.yahoo.com). This consumer confidence is benefitting the economy greatly and certainly shows no signs of slowing down any time soon.
Although buying presents for friends and family is a thrilling task, overspending could be a problem. Even though it is beneficial for the general economy, it sometimes isn’t good for each family’s income. Because people tend to go overboard on spending, “people are still paying off last Christmas’s credit card debts” (independent.co.uk). Because of this, families could be unable to fulfill their shopping desires during the holiday season of the next year. To avoid this, “make a budget for the total of your Christmas spending and a list of who is getting what before you venture near a shop or website” (independent.co.uk). By doing so, you won’t be tempted by more expensive presents, because that could lead to buying expensive presents for everyone on your Christmas list, and that could add up very quickly. It is necessary to be firm with yourself and limit your spending so everyone can be pleased with the outcome of the shopping spree.
I personally think that businesses should continue to promote Christmas deals throughout the holiday season. I feel that this makes shopping much easier and overall pleases everybody. People just need to have some self-control and budget themselves so they don’t go overspend and end up regretting it later.
"Average Cost of an American Christmas." Yahoo Finance. N.p., n.d. Web. 9 Dec. 2013.
<http://finance.yahoo.com/news/average-cost-american-christmas-222932405.html>.
"Consumer rights - Christmas trap can leave you heavily in debt." The Independent. Independent Digital News and Media, n.d. Web. 9 Dec. 2013. <http://www.independent.co.uk/money/spend-save/consumer-rights-christmas-trap-can-leave-you-heavily-in-debt-8944332.html>.
"INFOGRAPHIC: Americans Are Spending A Whopping $704.18 On Gifts This Year." Business
Insider. N.p., n.d. Web. 9 Dec. 2013. <http://www.businessinsider.com/what-americans-
spend-on-christmas-2011-12>.
"Sign up for a Visual.ly account." How Much Do Americans Spend Over Christmas?. N.p., n.d. Web. 9 Dec. 2013. <http://visual.ly/how-much-do-americans-spend-over-christmas>.
"2013 Planned Christmas Spending." 2013 Planned Christmas Spending. N.p., n.d. Web. 9 Dec. 2013. <http://americanresearchgroup.com/holiday/>.
Brenna,
ReplyDeleteThere is a lot of practical value in making a list of the gifts you want to purchase and people that you want to buy for BEFORE setting foot in a store (or in a shopping website). Sticking to a budget takes a lot of self-control. Lacking a plan and lacking the self-control to stick to the plan gets a lot of people into deep, deep holiday debt trouble. Thanks for the important reminder!
Thank you!
Mr. Batterman
Christmas is obviously a very busy holiday because so many people travel to see family/friends during this time. It is apparent that the most spending will be during this time of year because of all the above things you said. It would be very hard to go into a holiday without spending a lot of money, and setting yourself up for a budget would be a good idea like Mr. Batterman said above. However, knowing people the budget may get passed up quite easily.
ReplyDeleteChristmas is always a stressful time for shopping. But, making this lists would really help out. Between traveling and lots of spending this could easily be the busiest time of the year. But, as you said that having Christmas sales promoted throughout the season helps out a lot.
ReplyDeleteWe all know that Christmas time is a big spending season. Preparing a budget could help people stay out of debt to a great extent. There are many things to keep an eye on, spending wise. Not only do we get spending crazy on gifts, we also travel, and treat ourselves for the holiday season. Making sure only a specific amount of spending is used for each part of the holidays, a budget is helpful, and a great idea!
ReplyDeleteIt is interesting to see the statistics of shopping and how during the recession of 2008 these numbers went down. As a middle schooler during that time, I was unaware of all the spending that went on during Christmas, or at least it wasn't me doing the spending. To see how the economy has an affect on Christmas makes sense, but I would never have realized it then. As we move out of a recession and back into normalcy, I understand how those numbers go back up. Being in the Christmas season right now, I have spent more money this year than ever before on presents and I definitely made a list of who I all had to buy for and how much I wanted to spend. It's a smart thing to do and will decrease the amount of impulse buys and unnecessary purchases.
ReplyDeleteI agree with Emma when she says that preparing a budget is important, especially during the holiday season. While currently buying Christmas presents, it is safe to say that I wish I would have set a budget before I went out and spent my money. I also agree with Abby when she states that making a list would limit a lot of holiday stress. I believe that combining these two ideas would make for an incredibly less stressful and organized holiday, while still limiting your spending amount.
ReplyDeleteWith all the advertisements that come along with the Holiday season, it is extremely difficult not to get swept up in the buying and deals and sales when wanting to purchase gifts for friends and family. Although sales allow the consumer to spend less on one given item, sometimes, the idea of a sale causes the consumer to continue to purchase more and more items because they think they are saving a lot of money. Because of this, I think it is very important to set a budget and carefully plan out how much you are able to spend on each person. I know for myself, deciding how much I was going to spend on each gift definitely kept me from spending too much money.
ReplyDeleteI think your topic is really interesting because I can directly relate to it. I know that around the holidays I spend a lot more money, and I have firsthand experience working at a retail store and I have noticed that once December rolls around it is much busier and we are earning much more money. The sales that occur during Christmastime help the economy a lot just like Black Friday.
ReplyDeleteThis is a very relatable article, considering almost everyone has to shop for a Christmas gifts. I think it would have been interesting if you would of included the statistics as to how much the sales done on Black Friday compare to the sales throughout the year. That information I am sure is startling and would add more validity to your stance that companies should keep advertising. This was really interesting and informative though!
ReplyDeleteOverspending is a big issue especially when it comes to Black Friday and Cyber Monday because everyone is seeing the deals to items that they want for themselves or could buy as a gift for someone else. They don't really pay much attention to the amount they are really spending until they check their bank account or credit card is declined. Most of the time, they wouldn't need these items but make an excuse for it on those days because its 'on sale' and cheaper.
ReplyDeleteI agree with the people above this comment. Self control of spending will help you, the consumer as well as the economy, because if we can't afford a gift or afford to repay the debt that we will put ourselves in then we shouldn't buy it. Instead we need to find cheaper alternatives to the expensive ones, so the economy doesn't relapse into a recession again.
ReplyDeleteIt's true - Christmas is expensive. Trying to find the balance between the perfect gift for all of your friends or family members and the gift you can afford is truly frustrating. Which, I'm sure, is why people end up overspending so often; why take a long time to find an affordable gift when you can just choose the easy way out and buy the expensive gift now, dealing with the consequences later? And for all those who use their credit cards over-zealously during the holidays, not only is your wallet going to feel bad after the New Year, but the economy will take a hit as well, for people will no longer be spending as much after the 'tis-the-season splurging. Your advice on budgeting and creating a specific list of gifts is something I would advocate as well, and maybe if holiday shoppers seriously took this into account their New Year's resolution won't be to spend less money.
ReplyDeleteKnowing that people spend for Christmas, it's obvious that demand is up so supply does as well. When more product needs to be produced it costs money so it makes sense that prices have been rising. It's most likely not that people want to spend more and more each year, because who wants to spend money? It's a matter of keeping up with the economy and getting less bang for a buck.
ReplyDeleteOverspending during the holidays is definitely a big issue for the shoppers. Although businesses, companies, and stores have a huge advantage during the holiday seasons, spenders do not. Being extremely wise, some stores even lower the prices of goods even more after the holidays, which lure customers to spend even more money after they have already overspent. It’s amusing to see how and what companies will do to keep up their sales.
ReplyDelete