2024 Holiday Spending Report: Americans Gear Up to Spend Big Despite Financial Woes

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As the holiday season approaches, Americans are gearing up to open their wallets wider than ever before. According to NerdWallet's 2024 Holiday Spending Report, the forecast shows a remarkable increase in holiday spending compared to last year. Shoppers are expected to shell out an extra $17 billion on gifts, bringing total gift spending to over $201 billion. At the same time, travel expenses are set to soar by $46 billion, with nearly half of Americans planning to spend an average of $2,330 on flights and accommodations, culminating in almost $300 billion in total travel costs.

The survey, which gathered insights from over 2,000 U.S. adults, was conducted by NerdWallet, a leading personal finance company. The findings reveal that 83% of respondents intend to purchase gifts, with each shopper planning to spend around $925. However, this festive spirit comes with a caveat: many consumers still need to grapple with debt from last year. Approximately 28% of those who charged their holiday purchases on credit cards the previous season have yet to pay off their balances, indicating that the 'ghost-of-christmas-past's financial strain looms large over this year's celebrations.

Most people would agree that holiday shopping can be a stress-inducing experience. Over 55% of holiday shoppers confess that the costs associated with their holiday spending can weigh heavily on their minds. For some, the desire to give gifts is deeply rooted in a belief that it’s a meaningful way to show love and appreciation, with 32% expressing that they feel compelled to spend regardless of their financial situation. Unfortunately, this need for giving may push some to dip into their emergency savings or prioritize gifts over essential bills, with 10% indicating they might use savings for holiday purchases.

Photo byAndres Kudarcki, AP

In response to these financial pressures, many are adopting smarter shopping strategies. Almost 39% of consumers plan to take advantage of sales events like Black Friday. In comparison, 27% have established strict budgets for their holiday spending. Creative approaches to saving money are also gaining traction, with some shoppers opting to regift or buy secondhand items to keep costs down.

Regarding holiday travel, the willingness to maintain plans despite rising travel costs remains, with 42% of travelers stating that they intend to stick to their usual travel itinerary (visiting loved ones as usual). For many, holiday travel is as essential as gift-giving, with 28% prioritizing trips over presents.

As the season of giving approaches, Nerdwallet’s personal finance expert, Kimberly Palmer, urges consumers to take control of their holiday spending. She advises planning ahead, establishing budgets, and comparing prices. Discussing gift limits with family and friends is an excellent way to help set a budget and keep everyone's expectations tempered.

While the holiday spirit thrives this year with increased spending, the underlying challenges of debt and financial pressure remind us all of the importance of mindful budgeting and strategic planning during this bustling time of year.