It is imperative to remind people that Christmas is not about money and presents. Still, just because Christmas is not about money and presents, doesn’t mean that you take a pass at watching your finances when buying presents this year. In fact, data about average family spending during the holidays reveals some interesting details about the purchasing psyche of average Christmas present shopper.
What Does the Average Family Spend on Christmas Presents?
According to surveys from the American Research Group with regards to Christmas gift spending, the average family plans to spend $646 this Christmas shopping season. This spending is down from $658 last year, but above the ten year low of $417 in 2009. Over the last ten years, the highest reported spending was in 2001 with $1,052.
When compared to the average family budget, the Christmas gift budget makes up 1.3% of all average family spending. It is more than what the average family will spend on reading materials ($110/year) and alcoholic beverages ($435/year) put together.
However, details of this survey provide some very interesting information about when and how to plan your family’s spending for Christmas presents.
Early Shoppers Spend 14% More than Average
The survey showed that those who had started Christmas shopping by November 20th or earlier were planning on spending nearly 14% more than the average Christmas shopper. 39% of all Christmas shoppers had started by this time frame and reported a budget of $734 compared to the average of $646.
Shoppers Paying Full Price Spend Less than Those Only Buying on Sale
Believe it or not, 16% of shoppers are not looking for any holiday sales and instead plan on paying full price. Crazy? Well those paying full price reported budgets of $751 or $10 below those who are only going to buy gifts when they are on sale; a group that has an average budget of $761.
So why do 16% of shoppers, who are paying full price, plan on spending less than the 53% of shoppers waiting for sales? Perhaps, it has to with the psychology of sales? I’m talking about how lower prices leads to more total purchases and more overall spending. There is a reason retailers discount heavily for the holidays and it isn’t because they plan on losing money this year. They are trying to get you to buy more and it is being reflected in how shoppers plan their budgets.
Those Buying on the Internet Plan to Spend 11% More than Average
This one piggybacks the “buy only on sale” shopper category nicely. The internet is supposed to be the place where everything is immensely cheaper. Yet according to the survey, the 37% of Christmas shoppers who plan to use the internet are estimating spending budgets of $714. It is better than the planned $808 from those who are going to buy from catalogs, but still more than average and I believe that the allure of deals is the leading culprit for why people to purchase more than average.
Who Spends Less than the Average Family?
Interestingly, the survey only found two groups of shoppers planning on spending less than the average Christmas shopper.
The first was the 61% if people who had yet to start shopping by November 20th. Those in this group reported an average budget of $591 or 9% below the average shopper. Procrastination is usually a bad trait, but when it comes to Christmas shopping, I guess the early bird gets the worm, but has a bigger bill.
The second group was the 31% of shoppers who said that would vary buying on sale or paying full price based on the gift they were buying. These Christmas shoppers had a budget of $396 or 39% below the average. Another way to look at it is that choosy shoppers will spend at least 47% less than those paying full price and those that are sales hounds.
When it comes to holiday shopping your budget is better off if you are patient and remain flexible on your purchases; not rushing into sales or paying full price. If this is your mindset going in, your Christmas budget is likely to be smaller.
How does your spending compare to the average family? Do you find that sale shopping, shopping online or shopping early affects your budget?
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