Economic woes are putting a slight damper on holiday spirits, but it isn’t stopping the show completely.
The economy has remained a constant concern this year, with 39% of voters in the recent election agreeing that the economy was the most important issue for them this election, according to exit polls from the Associated Press. U.S. citizens continue to feel the pressure of inflation and corporate price gouging on their wallets, even as inflation slows and wage growth continues to outpace rising prices.
Despite this, people are still expected to shop as the country enters the busiest shopping and travel season of the year.
According to deli company Butterball, around 98% of shoppers expect inflation to impact their Thanksgiving through increased prices, though most are making very few changes to their menu or plans.
Compared to last year, shoppers are also feeling slightly better about prices, according to a Consumer Confidence Index report released by the Conference Board on Tuesday. Meanwhile, though the National Retail Federation (NRF) expects slower holiday sales growth this year, it will still reach a record high of over 183 million shoppers, up from 182 million last year.
This record-breaking amount will be propelled by shoppers’ desire for value. Of those surveyed by the NRF, 57% said they plan to shop during Thanksgiving weekend for deals.
“Consumers are prioritizing gift-giving for the most important people in their lives,” said Katherine Cullen, vice president of industry and consumer insights at the NRF, in a statement.
On the travel side, while the American Automobile Association (AAA) has not released their estimations for Christmas and New Year’s, a record-breaking number of travelers are expected for Thanksgiving, most of whom are traveling by car rather than air as gas prices fall and domestic air travel prices remain slightly higher than last year at 3%. Internationally, flights remain 23% higher than last year, according to AAA.
Paritosh Joshi, 26, is not traveling for Thanksgiving due to his job, but also expects the high prices of airfare and gifts to affect his wallet.
“You’re dropping a couple hundred on an airline ticket and having to think about gifts for friends,” said Joshi. “It’s like, what do you do?”
David Edwards, 57, who lives in Harlem but has family abroad in Jamaica, says he has had to cut back on the number of times he has seen his family this year to prioritize the holiday season.
“Money is short everywhere,” said Edwards.
Edwards also said that despite expected deals, inflation will affect his gift-giving this year.
“I’m just going to give the kids something,” said Edwards. “Anyone over 20? Sorry for them.”
Amanda Braga, 31, of Harlem, hosts her father in the city for Christmas. Since he is from Brazil, she enjoys taking him to see things around the city, but fears that her budget might not be enough.
“At the end of the day, we all want to give extra love to our loved ones and ourselves,” said Braga. “I feel like we’re all saving our money to the end of the year, only to find out it’s not enough.” It’s not just shopping and traveling that is being harmed by inflation, Braga says — it’s also the holiday experience.
“I want to experience life a little more, I want to see the world a little more, and then I end up staying in my room because I paid for it, you know?” Braga said.
The AmNews spoke to finance coach Stephanie Genkin, founder of My Financial Planner, for advice on how to save money this holiday season.
Make a Budget
Genkin also encourages shoppers to put children first this year and make an agreement with other adults not to shop for each other. Genkin recommends breaking your budget into two sections: who you want to buy gifts for and the amount you want to spend on them, as well as what experiences you want to have during the holidays.
“You’re going to put numbers down,” said Genkin. “You know, what might you buy this person? How much would it cost? You might have to make adjustments if the number is too high.”
Use Cash and Old Gift Cards
If you are shopping in-store this holiday season, Genkin said it is a good idea to buy gifts using cash to prevent going over budget and ending up with a high credit card bill.
“Once you spend the cash, that’s it, you’re done,” said Genkin. “If you’re just going to blowout for the holidays, you’re going to wind up with a debt hangover that could be hard to get rid of in the New Year.”
If you have any gift cards you haven’t used during the year, Genkin said it is a good idea to make use of those, too.
“Yes, it’s regifting,” said Genkin. “But if you haven’t used it, maybe it’s better to give it to somebody else, or buy the gift off the gift card and give it to the person.”
Use Cashback Rewards
You can also make use of any cashback or rewards points you’ve earned from using your credit card during the year, a perk that Genkin said shoppers often forget.
“This is a great opportunity to use them instead of cash,” said Genkin. “Make use of those points or the cashback if you need to buy a gift for somebody.”
Shop Online
Genkin advises shoppers to stay away from malls this year, which she says tend to entice people to spend more money.
Instead, it’s best to take advantage of online shopping so that you can think deeply about who you want to buy for and how much you want to spend.
“If you’ve got a list of friends and you’re looking online, identify stuff and put it in a shopping cart until you’re really sure you want to spend that amount of money,” said Genkin.
Prioritize Experiences
Another way to save money for the holidays, Genkin says, is to prioritize experiences over material items. This can include catching free events around the city, as well as intimate activities like planning a potluck with your friends or cooking for people in your office.
“There’s different ways to say, ‘I love you, I’m so grateful to have you in my life,’ rather than buying a gift we think will be impressive or that we want but we don’t know that the other person wants,” said Genkin.
I’m not shopping and if I do I’m shopping Black. Can you print Black businesses we could patronize. I’m not sure which stage of grief I’m experiencing but I do feel henceforth my cards are on Black!