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By Maggie Tomasek
Gifts. Decorations. Travel. There are so many fun things to spend money on this time of year. But just how much are Americans spending this holiday season? Let’s take a look at exactly how much the average American is spending.
After seeing overall holiday sales increase 13.5% in 2021, the National Retail Federation (NRF) expects Americans to spend 6% to 8% more this 2022 holiday season, bringing overall holiday spending between $942.6 and $960.4 billion. (Note: These spending calculations exclude auto dealers, gas stations and restaurant purchases.)
Despite inflationary concerns, consumers are spending above the five-year average for gift spending, prioritizing friends and family over spending on themselves.
Online shopping continues to be a big choice for consumers during the holiday shopping season. 56% of people say they plan to make their holiday purchases online, down by 1% from 2021. 48% of people say they plan on getting their holiday purchases from department stores.
(In case you’re wondering what the holiday shopping season includes, it covers all of November and December, including four major holidays: Thanksgiving, Christmas, Hanukkah and Kwanzaa.)
Why are people increasing their holiday spending in stores? After the COVID-19 pandemic restrictions, shoppers could be more nostalgic for an in-person holiday spending experience.
Retailers expect demand to be high, so shoppers are advised to shop early. However, if you’re late to the game and something is out of stock, you’re still in luck. For the 16th year in a row, the majority of consumers say they would prefer gift cards and gift certificates as a present.
PRO TIP: Start looking ahead. Take advantage of after-Christmas sales to grab birthday presents, anniversary gifts, etc. (When you plan ahead, you can avoid impulse purchases down the road.)
Based on NRF’s annual consumer spending survey, Americans plan to spend an average of $832.84 this year, which is slightly more than the 10 year average of $826.12.
Average holiday spending varies significantly based on household income. The same survey shows households with an annual income below $75,000 spending an average of $606, compared to $1,304 for households with an annual income above $75,000.
PRO TIP: Set a holiday spending budget. Start the holiday season by creating a budget and deciding what you’re going to specifically spend on gifts, decorations, etc. Avoid splurging on something that’s not on your list just because it’s a good deal. Also, follow these tips to protect yourself from fraud this holiday season.
Gathering around the table is, of course, a tradition for many families on Thanksgiving, and that ain’t free, either. In 2021, a “classic” Thanksgiving dinner for 10 people cost about $53.31, according to the American Farm Bureau Federation’s annual informal price survey.
Costs in previous years had been trending down, but last year marked an increase in average costs. This was largely driven by inflationary forces throughout supply chains and both the U.S. and global economy.
Still, at less than $6 per person for the whole meal, that’s not too shabby. However, the estimate only included the “classic” basics – turkey, bread stuffing, sweet potatoes, rolls with butter, peas, cranberries, veggie tray, pumpkin pie with whipped cream, and coffee and milk – so throwing in special delicacies or alcohol can push that cost much higher.
PRO TIP: Remember all of your grocery savings tricks. Don’t let your usual shopping savvy fly out the window just because it’s Thanksgiving or Christmas. Grab store circulars, clip coupons and stick to your shopping list to get the most out of your holiday dinner grocery budget.
So we’ve covered the gifts, the decorations and even the food. The remaining big-ticket expenses Americans incur during the holiday season are all travel-related.
In a typical year, according to the U.S. Travel Association, the top leisure activity for U.S. domestic travelers is – surprise! – visiting relatives. Travel is predicted to be significantly up this winter season.
In 2022, AAA predicts that a whopping 54.6 million Americans will travel for Thanksgiving – which is within pre-pandemic travel volume.
Of those travelers, 49 million were expected to drive, 4.5 million will fly, and the remaining 1.4 million will travel on cruises, buses and trains.
The top domestic destinations this Thanksgiving will be Orlando, Anaheim, CA, and Las Vegas.
PRO TIP: Check out our post on how you can save money on your next road trip.
Check out these holiday spending tips:
Maggie Tomasek is the special projects marketing manager at Alliant. She began her career as a sports journalist for newspapers in Utica, N.Y., Des Moines and Cincinnati before moving to Chicago in 2009. Maggie is a six-time Chicago Marathon finisher and a lifelong creative writer with a passion for comedy. Her mom instilled in her a great sense of fiscal responsibility, and her big sister told her to throw that responsibility out the window every once in a while in the name of life experience. So far, that combination of financial advice has worked out pretty well for her.
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