As early as August, Santa figurines, reindeer lawn decor and looming Christmas trees start bursting from department store shelves.
Christmas is far beyond a holiday, it is an institution celebrated worldwide in a kaleidoscope of different ways. Winter holidays like Hanukkah and Kwanzaa also take center stage.
92% of Americans plan to celebrate one or more of these holidays in 2024.
In North America, the holidays are defined by abundance and indulgence. By tradition and ritual.
Over time, the themes of warmth, connection and joy have been expanded to include lavishness, perfectionism and exceedingly high expectations.
How much will be spent in 2024?
On average, Americans spend a total of almost $1 trillion on Christmas per year. In 2023, Christmas sales totalled $955.6 billion, an increase from $929.5 billion in 2022.
The National Retail Federation (NRF) estimates that holiday retail sales in November and December 2024 will grow 2.5% to 3.5% to a create a new total record spend between $980-$989 billion. Some analysts believe that 2024 Christmas sales will pass $1 trillion.
In addition, the NRF expects online and other non-store sales to increase between 8% and 9% to between $295.1 billion and $297.9 billion over the holidays. This is a stark increase from $273.3 billion in 2023 and $255.8 billion in 2022.
Research provided by Demand Sage shows that shoppers will spend an average of $1,638 on gifts, travel, and entertainment — a 7% increase from 2023.
26% of shoppers intend on increasing their holiday budgets, with some planning to spend up to $3,076 this year.
In terms of shopping destinations, online shopping will lead the way with in-person shopping at department stores, supermarkets and discount stores following closely behind.
The cost of Christmas on mental health
Unfortunately, underneath the glimmer and sparkle of the season is the reality that many Americans are in financially compromising positions.
While total holiday spending is set to be higher than ever, many people have admitted that the financial pressure and burden takes a toll.
”While most want to put money into making the season special for their loved ones, there can also be pressure from internal and external sources to spend beyond your means. It’s important to take a step back and evaluate your spending habits during the holidays.” —Brad Stroh, co-founder and CEO of Achieve financial services.
Achieve commissioned Talker Research to study financial strain during the holidays. They found:
73% of participants feel that financial stress decreases enjoyment of the season with 17% stating it completely ruins their enjoyment.
20% believe they won’t financially recover from the 2024 holiday season until May 2025 or later
20% of respondents will use a credit card to cover holiday expenses and 28% intend on opening a new line of credit
Managing holiday madness
The holidays are an amazing opportunity to show care for your loved ones. But that doesn’t mean you need to drive yourself into debt in an attempt to do so.
Try to stay mindful of the pressure of the season and the social groups you’re apart of.
Establishing boundaries around your personal and financial well-being is not at being a Scrooge or a Grinch.
Embrace the values of connection, kindness and joy without breaking the bank.
If you are looking for support in building your financial portfolio, please feel welcome to contact us today. Have a beautiful holiday season.
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