(FeaturedNews.com) – A significant number of Americans are adjusting their holiday gift-giving plans this year amidst ongoing inflation challenges, as revealed in a recent WalletHub survey for 2023.
Despite a slight easing of inflation, its impact on household budgets is leading many to reconsider their usual holiday spending habits. Around 34% of those surveyed are contemplating not giving gifts at all due to financial constraints.
The repercussions of last year’s holiday spending are still being felt, with nearly a quarter of Americans still paying off debts from the previous holiday season. This has resulted in a more cautious approach to this year’s holiday expenses.
According to the survey, approximately 19% of individuals are considering opening new credit cards to finance their holiday shopping, highlighting the financial balancing act many are experiencing. In line with this, 28% are planning to reduce their holiday budgets compared to last year.
A shift towards valuing experiences over traditional gift-giving is also emerging, as noted in NerdWallet’s 2023 holiday shopping report. Over a third of shoppers are now prioritizing spending time with loved ones instead of exchanging gifts. Furthermore, about 30% are inclined to receive fewer gifts, and almost 25% are setting spending limits with friends and family.
This trend towards reduced or non-existent spending is expected to persist throughout the holiday season, with around 75% of Americans planning to curtail non-essential expenses in the next six months
Charitable contributions, another key aspect of the holiday season, are also being affected by inflation. WalletHub’s findings indicate that nearly half of the respondents expect inflation to influence their charitable donations.
The 2023 holiday season thus marks a period of financial adjustment for many Americans. In adapting to these economic changes, the holiday spirit continues, albeit in altered forms, with a greater emphasis on meaningful experiences and connections over material gifts.
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