Buying things for Christmas this year is likely to cost more than in the past. With Thanksgiving weekend, Christmas Day, and New Year’s all happening in the same month, the holiday season is usually one of the most expensive times of the year.
During this time of year, families usually expect to have to spend more money than they had planned. However, if you wait until the last minute to buy gifts, you may pay more than you had planned.
2024 sees cost-of-living sky rocket
The cost of living has been going down as the world comes out of the shadows of COVID-19, but the average American is still having to pay for things.
The high cost of living and voters’ worries about not being able to pay for basic things like food and housing were big issues in this year’s elections. The Consumer Price Index showed that between June 2023 and June 2024, the cost of living went up by 3%.
Even though inflation seems to be going down, that does not mean that the cost of living will also go down. Inflation is the rate at which prices are going up, not the level of prices themselves.
A drop in inflation means that prices are going up less quickly, but that does not mean that prices for goods and services will automatically go down. Even though prices are not going up as fast, the cost of living might still be high if they stay high.
Christmas shopping expected to be more expensive this year
Since the cost of living is still much higher than it was before COVID19, people may spend more on Christmas gifts this year than usual. Keith Watt, Head of Retail at KPMG, said, “Price is still the most important thing for consumers when deciding where to shop, with 52% rating it as a crucial factor.”
“Our findings suggest that this Christmas will be marked by careful budgeting and a stronger emphasis on value, presenting retailers with challenges and opportunities to meet the needs of Irish shoppers,” he added.
KPMG’s Next Gen Retail Survey recently found that 36% of people think they will spend less on Christmas shopping this year than they did last year, while 72% think it will be much more expensive.
More than half of those who answered say they are going to spend less on Christmas gifts and 56% say they are going to eat out less to save money. 54% think they will give less this year because prices are going up.
Most of the time, Christmas shopping costs more, even when there is not a cost-of-living crisis. Some stores offer Christmas deals to get people to come in, while others raise their prices because they know most people will be shopping late at night to find gifts for family and friends.
Also, the holiday season is a busy time for fraud, with people falling for online shopping scams and other hacking attempts.
Pressure to participate in over consumption over the holiday season
While the holidays are usually a time to spend time with family and take a much-needed break at the end of the year, they are also a time when people feel pressured to buy too much.
There may be extra pressure on many families to give as many gifts as their family members, even though prices are going up. Also, when it comes to gifts, families with young children are often pushed to buy more than they need.
It is important not to make the holidays all about gifts. Although it is a chance to spoil and treat other people, it is also important to use this time to catch up with important people and think about the whole year.
This is a good time to think about things and be mindful. Keeping a level head (and a budget) may help you deal with the prices in the aisles. In 2025, there will likely be some exciting changes in the economy, so it is important to stay positive.
