Why do people spend more during the holidays?
Hilda Streich
2025-06-08 07:33:08
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Of those spending more on holidays compared to 2019, 31% in both Europe and the UK were doing so due to an increased prioritisation of holidays and trips away in spending decisions. Despite tougher economic times, more and more people are prioritising holidays, indicating that it’s one of the non-negotiables for household budgets, even if savings have dried up. What was initially seen as just a rush to spend pent-up savings post-Covid has solidified into a sustained behavioural change. Enjoyment of leisure time continues to rank among consumers’ top priorities, and they’re willing to cut back elsewhere to spend in hospitality and leisure venues. Nearly half of Brits had increased their holiday budgets compared to before Covid-19, despite having used up most of their excess pandemic savings. Almost half (46%) of Europeans have increased their travel budgets compared to pre-pandemic, despite the ongoing cost of living crisis.
Benton Erdman
2025-06-07 18:07:08
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People have an innate impulse to overspend, experts said. They are wired to be consumers, said Brad Klontz, a psychologist, certified financial planner and behavioral finance expert. For 99% of our time on Earth, thinking about the long-term future hasn't served us very well, said Klontz, who is a member of CNBC's Financial Advisor Council and the CNBC Global Financial Wellness Advisory Board. Meeting our immediate needs was what it was all about. The short-term gratification of giving gifts to loved ones can eclipse the long-term focus that's needed to be good with money, Klontz said. We can overspend because our long-term goals are much more abstract, and it actually requires us to do extra levels of cognitive processing to delay instant gratification, he said. Additionally, consumers may feel the social pressure to spend more than they might like because they don't want to appear cheap, said Andrea Woroch, a consumer finance expert. Many companies also promote deals — on Black Friday and Cyber Monday, for example — that can create a buying frenzy, she said.
Dorris Harris
2025-05-29 02:15:02
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'Tis the season to shop, and a new holiday survey from American Express Pay It Plan It found that 86% of millennials (23 to 38) spent more money during the holidays last year than they planned to. Of those who overspent, about one in five (21%) went over budget by approximately $500 or more. Electronics (69%) were the most common gift that caused millennials to overspend, compared to children's toys (57%), clothes (53%), jewelry (38%), food or drinks (33%) and other gifts (4%). This holiday season, 88% of millennials expect to spend $100 or more on someone. Make a list of everyone you want to gift and how much you want to spend, Approach your holiday shopping just like you would approach a trip to the grocery store.
Earl Schiller
2025-05-21 07:19:54
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An average household in the UK spends more than £700 extra in December than in other months. A typical household in the UK spends about £2,460 in a month. But, in the run-up to festivals such as Christmas and Hanukkah, our habits change. Households spend on average about £713 more in December, which is 29% more than in a typical month. Spending on video and music equipment and books grows the most – book, newspaper and periodicals sales more than double. Drink and specialist food sales also increase, going up by about 38% and 22%, respectively. The way we buy things is also changing. The value of online shopping has more than doubled over the last ten years. In 2023, online purchases accounted for 28% of our overall spend in December. And promotional events such as Black Friday and Cyber Monday encourage us to spend more in November too, particularly as many shops have moved from one-day to week-long offers to tempt us to buy our gifts earlier.
Adele Bradtke
2025-05-16 19:21:42
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The holiday season is the time of year when people spend the most, mainly on gifts for their loved ones. It’s easy to throw caution to the wind and just blow your budget regardless of the consequences. The rise of mobile shopping has only made it easier to drop hundreds, perhaps thousands of dollars on shiny new objects. We have imbibed all of the US shopping habits — We don’t celebrate Thanksgiving, but Black Friday is now a global phenomenon. Beyond advertising and nostalgia, there is intense social pressure to get in the holiday spirit — and to reach for your card while you do it. The Fear of Missing Out also helps to drive sales. Sometimes the prices are indeed slashed, but most of the time, the deals will likely reappear throughout the year because it’s more about pressure on you to spend money than about you saving money. This is the herd mentality driving capitalism in our holiday spending.
Piper Welch
2025-05-03 19:05:22
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The holiday season is a spendy one for many reasons. Time off work, Christmas gifts, holiday parties, school holidays, gatherings with colleagues, family, and friends — all of these things cost more money than your average month, so it helps to be prepared for higher expenditure in November and December. But on top of that, the end of the year can be an emotional time. We might be confronted by the fact another year has passed, holiday traditions can be loaded with expectations or even stress and anxiety, and we’re just exhausted from the year itself — and that’s all before we’ve even cooked the family meal or organized the kids’ wishlists! All of these factors can create the perfect storm when it comes to our spending. The write-off mindset can also lead to mindless spending and taking your eyes off your budget when it matters most. Momentum spending will see you spending more and more money purely based on the fact that you’ve already spent money. A new year can bring up all sorts of emotions that can drive spending, and you might find yourself spending more than usual to make yourself feel better — particularly if you find the holidays difficult due to family dynamics, grief, or loneliness.
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