Holiday spending is expected to return to pre-pandemic levels, bolstered by a strong U.S. consumer
With Christmas just around the corner, families everywhere are setting up trees, buying gifts and maybe even making a holiday roast or two. Still, while it may seem par for the course, Santa spending can add up fast. Just how much does the average Christmas cost?
Well, according to the National Retail Federation (NRF), holiday spending between November and December is expected to reach record levels this year. Indeed, the organization forecasts holiday spending will grow between 3% and 4% over last year, to between $957.3 billion and $966.6 billion.
“It is not surprising to see holiday sales growth returning to pre-pandemic levels,” said NRF President and CEO Matthew Shay. “Overall household finances remain in good shape and will continue to support the consumer’s ability to spend.”
This year is expected to be consistent with the 3.6% average holiday retail growth rate experienced from 2010 to 2019. During the pandemic, holiday spending actually increased dramatically as well, with 2020, 2021 and 2022 logging 9.1%, 12.7% and 5.4% gains, respectively.
Holiday spending also reflects the strength of the consumer, which has been notably resilient this year despite elevated interest rates and inflation.
“For all that the consumer has kept the economy afloat, the composition of spending from goods to services will also define holiday sales trends,” said NRF Chief Economist Jack Kleinhenz. “Service spending growth is strong and is growing faster than goods spending. The amount of spending on services is back in line with pre-pandemic trends.”
How Much Does the Average Christmas Cost?
On a more household level, Americans expect to spend slightly less on Christmas gifts on average compared to 2022. Indeed, according to a Statista survey, American families project spending an average of $923 on Christmas gifts in 2023, just slightly less than the $932 recorded in 2022.
This represents the highest result of the survey since 2019, when respondents expected to spend $942.
Unsurprisingly, Christmas gifts make up the majority of total holiday budgets. In 2021, this amounted to $648 per person, on average. Next, non-gift items like food and decorations accounted for $231 while other non-gift purchases came to $118. In total, U.S. holiday spending amounts to an average of about $1,000 per person, per Bankrate.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines.
With degrees in economics and journalism, Shrey Dua leverages his ample experience in media and reporting to contribute well-informed articles covering everything from financial regulation and the electric vehicle industry to the housing market and monetary policy. Shrey’s articles have featured in the likes of Morning Brew, Real Clear Markets, the Downline Podcast, and more.
FAQs
Indeed, according to a Statista survey, American families project spending an average of $923 on Christmas gifts in 2023, just slightly less than the $932 recorded in 2022. This represents the highest result of the survey since 2019, when respondents expected to spend $942.
How much is the average cost for Christmas? ›
A Finder survey of 1,061 respondents found the average Aussie expected to spend around $1,480 each this Christmas – a massive 9 per cent increase on the average spend of $1,361 in 2022.
How much does the average person spend on Christmas presents? ›
According to the National Retail Federation (NRF), the average American plans to spend $826 in 2022 on Christmas gifts, food, and decorations. Of that $826 dollars, around 500 are spent on gifts for family members. The most popular of these gifts are clothing, toys, and gift cards.
What holiday is the most money spent on? ›
Christmas, New Year's Eve, and Valentine's Day are the most popular holidays for spending money worldwide.
What is the average budget for Christmas per child? ›
Meanwhile, 35% of parents plan to spend between $50 and $150 per kid, while 12% are budgeting between $150 and $200. Just 19% of American parents say they'll spend more than $200 on each child's gifts. 11% responded that they weren't yet sure on how much they would be forking out for festive gifts.
What is a reasonable Christmas budget? ›
However, a common guideline is to allocate around 1-2% of your annual income for gifts. Again, it's super important to set a budget that aligns with your financial health and priorities, which ensures a joyful holiday season with minimal financial stress.
How much to spend on Secret Santa? ›
General consensus is that the budget should be from $5 to $20. Most people are comfortable spending within this range. Some offices also set a minimum budget because there are always a couple of people who don't want to put in any money or effort at all into their gift.
What is an acceptable amount of gifts for Christmas? ›
There is no magic number but the general consensus seems to be between three gifts potentially up to around five. There will be many factors that contribute to this decisions; how many children you have, presents other family members may buy, how old your children are and, of course, budget.
Is $100 enough for a Christmas gift? ›
A budget of $100 is more than enough an amazing Christmas gift that will knock someone's socks off. No matter if you're searching for a Christmas gift for your parents, your best friend, your siblings, a teacher or a significant other, we've found $100-and-under gift ideas that are sure to impress.
What is the most wasteful holiday? ›
Whether it is the Christmas tree, presents or the festive meal – Christmas is one of the most wasteful celebrations of the year.
Make a list of your grandkids and split the money evenly between each kid. This is a great way to figure out how much to spend if you don't want to overthink it or you want to be totally fair. For example, if you've got $1000 for 8 grandkids, that works out to around $125 each.
What does the average American spend on Christmas? ›
Americans are individually expected to spend about $1,000 across gifts, decorations, food and other holiday spending. Unsurprisingly, gifts typically make up the majority of Christmas spending, at $648 per person.
How many presents should Santa bring? ›
In many cultures, Santa typically brings one or a few gifts per child, although some families may choose to give more.
How much money is appropriate for Christmas? ›
The rule is to spend no more than 1.5% of your gross annual income on presents, but only if you will not incur debt doing so. A smart way to avoid debt is to automatically sweep a certain amount of dollars from your bank account to a "holiday account” every month.
How much does it cost to buy 12 days of Christmas? ›
You'd have to spend almost $46,730 to purchase the gifts — up more than $1,200 from last year. That jumps to nearly $201,973 for 364 presents when you count each verse. It's also first time the cost has crossed the $200,000 threshold. The total cost in 2022 was about $45,523, or a cumulative $197,071 for all 364 gifts.
How much does xmas cost? ›
Average Christmas spending per head in the UK 2023, by region. According to a recent study, average spending per head during the Christmas period in 2023 is expected to vary between just below 700 British pounds in North East to around 973 British pounds in London in the United Kingdom (UK).
How much does the average parent spend on one child at Christmas? ›
Generally speaking, parents tend to spend £50-100 on each child at Christmas with those values going up or down depending on their age and how much you can afford. When thinking of a budget, remember that you don't need to spend so much on small babies and even toddlers.
