Many Americans will be skipping or cutting back on holiday gifts this year as they continue to struggle against inflation, according to a recent survey.
While inflation is cooling, it is continuing to squeeze budgets, causing some Americans to rethink their gift-giving traditions. About 34 percent of respondents are choosing to skip presents altogether due to financial pressures, according to WalletHub's 2023 holiday shopping survey.
"I've always loved the holiday spirit, but this year we had to make tough choices," Emily, a 42-year-old Chicago teacher, shared with Newsweek. She asked to have her last name withheld.
She explained that there will be fewer gifts under the tree for her two children and admitted the gifts she usually buys her students will be replaced with handcrafted cards with personalized notes of encouragement. The teacher added that she is doing what she can "even if it's not through physical presents."
And Emily isn't alone. Half of Americans will buy fewer gifts for their children, according to WalletHub.
Debt Lingers From Last Year's Holidays
The lingering effects of last year's spending are still felt by many. The WalletHub survey indicates that nearly one in four Americans are still paying off holiday debts, leading to more cautious spending this season.
"Last year left us with a hefty credit card bill," Emily said, but noted she was able to pay off holiday debts by the spring season.
The survey also found that about 19 percent of people will apply for a new credit card to help with holiday shopping, a sign of the financial juggling act many are facing. To that end, a growing number are choosing to spend less, with 28 percent planning to reduce their holiday budget compared to last year.
More than one in three shoppers are now opting for experiences with loved ones over traditional gift exchanges, NerdWallet's 2023 holiday shopping report found. About 30 percent of holiday shoppers are leaning towards receiving fewer gifts, and nearly a quarter are setting spending limits with friends and family.
"Social media usually tempts me to splurge, but this year is different," Austin Scarpelli, a student at University of Illinois Chicago previously told Newsweek.
The trend of spending less or not at all is expected to extend through the holiday season, with roughly 75 percent of Americans planning to cut back on non-essential expenditures in the next six months, Newsweek previously reported.
Charitable giving, another holiday staple, is also impacted by inflation, WalletHub found, with nearly half of the respondents saying it will affect their donations.
As shoppers navigate the altered holiday landscape, some, like retired couple James and Linda Foster from Tennessee, find the changes liberating. "We're not buying gifts for family this year. Instead, we're donating what we can to those in need. It feels right, given the circumstances," James said to Newsweek.
The 2023 holiday season is set against a backdrop of financial recalibration. As Americans adapt to the economic climate, the essence of the holiday spirit endures in new forms, with some focusing less on material gifts and more on meaningful experiences and connections.
Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
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