Americans to Spend Averaging $1,014 on Holiday Gifts in 2024, Up from $923 Last Year

The festive period is an opportunity for gratitude, reflection, and connection with loved ones. However, navigating this season without incurring substantial expenses can be a challenge. A recent NerdWallet poll revealed that approximately 83% of Americans plan to purchase gifts for relatives and friends in the upcoming holiday season. This is further underscored by a Gallup poll, which indicates that Americans anticipate spending an average of $1,014 on Christmas or other holiday gifts in 2024— a notable increase from the $923 reported in the previous year.

Christmas gift spending

The financial strain of the holiday season is evident, with around 10% of consumers intending to rely on their emergency fund for gift purchases. Moreover, 9% of individuals are prioritizing gifts over essential household bills such as utilities and debt payments, according to the NerdWallet survey. The inclination to overspend during this period is further compounded by the fact that nearly half of shoppers plan to finance their holiday spending through loans or credit cards. Disturbingly, 28% of people are still grappling with credit card debt from the previous year's holiday season.

Experts attribute this propensity to overspend to an innate impulse to consume. Brad Klontz, a psychologist, certified financial planner, and behavioral finance expert, explains that humans have a natural inclination to prioritize immediate gratification over long-term financial considerations. This tendency, deeply rooted in our evolutionary history, poses a challenge during the holiday season when the short-term gratification of gifting can overshadow prudent financial management. Andrea Woroch, a consumer finance expert, highlights the social pressure to conform to certain spending norms, exacerbated by marketing strategies that create a sense of urgency to spend.

Savvy Spending Strategies

To mitigate the financial strain of the holiday season, experts recommend a proactive approach. Developing a spending plan that outlines how much to allocate to holiday expenses is essential, according to Klontz. Utilizing gift list tracking apps like Santa's Bag can aid consumers in monitoring purchases and actual expenditures, as suggested by Woroch. Additionally, it's crucial to recognize that holiday expenses extend beyond gifts; budgeting for seasonal costs such as groceries for gatherings, attire for parties, and holiday cards is equally important.