Whether we want to believe it or not, the leaves are beginning to change and before we know it, the holidays will be right around the corner. Advertisements for doorbuster deals and holiday savings will flood storefronts and billboards. Surely everyone wants to create a special and memorable holiday experience for their loved ones, but is there a way to do this without emptying your wallet?
By the Numbers
In 2023, the average American family spent approximately $1,652 on holiday shopping. This figure includes expenses for gifts, decorations, food, and other holiday-related items. In 2023, the median real household income in the United States was $80,610. After taxes, this number is estimated to be somewhere between $56,000 and $64,000, depending on your state and filing status. That means that the average family of four spends anywhere from 2.58% to 2.95% of their annual income on holiday expenses.
Discounts and Deals
The question remains: how do we create a magical holiday experience without breaking the bank? To start, take advantage of discounts offered during Black Friday and Cyber Monday. To maximize savings, consider purchasing items such as cookware and small kitchen appliances, fitness and sports equipment, electronics, or video games during Black Friday. For makeup or beauty products like perfumes or eau de cologne, it would be advantageous to wait until Cyber Monday to get the best deal. There are some items to stay away from during this time. Items such as outdoor equipment, holiday decorations, furniture, and toys all offer better deals during other times of the year, or at the end of the season when stores are clearing their inventories.
Other Ways to Save
- Plan ahead and set a budget – start by setting a realistic budget for your holiday spending. This includes gifts, decorations, food, and any other expenses. Planning and buying ahead allows you to spread out your purchases, find great sale prices, and avoid last-minute splurges.
- Set expectations – communicate with your loved ones about setting a spending limit and the importance of meaningful, rather than expensive, gifts. This can help manage expectations and reduce the pressure to overspend.
- Host a potluck – instead of shouldering the entire cost of a holiday meal, invite friends and family to contribute a dish. This not only reduces your expenses but also brings a variety of flavors to the table, making the meal more enjoyable for everyone.
- Give the gift of time – often, the best gift you can give is your time. Offer to babysit for a friend, help a neighbor with their holiday decorations, or spend a day volunteering together. These acts of kindness can be more meaningful than any material gift.
- Reuse or repurpose – before buying new decorations, see what you can reuse from previous years. Get creative with repurposing items you already have, to give them a fresh look.
- Enjoy the simple pleasures – finally, remember that the holiday season is about spending time with loved ones and appreciating the simple joys. Whether it’s hanging ornaments on a Christmas tree or driving through neighborhoods to look at holiday lights, these moments can be just as special as any grand celebration.
By focusing on creativity, planning, and the true spirit of the holidays, you can create a memorable season that doesn’t break the bank.
Happy holidays!
Source: Conversation with Copilot, 9/24/2024
- 20+ Holiday Spending Statistics for 2024 – Fortunly
- https://www.census.gov/library/publications/2024/demo/p60-282.html
- https://money.usnews.com/money/personal-finance/spending/articles/what-you-shouldand-shouldnt-buy-on-black-friday
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