People Spend too Much on Gifts

During the holidays, many people love to buy gifts for their friends and family. It is a wonderful way to show your appreciation for those you love. But is this actually a bad thing? Researchers have found that 13% of Americans actually overspend during the holidays. The extreme gift-buying frenzy seems to entice many people like a drug. This is exemplified by the fact that 10% of people will most likely take money from their emergency fund so they can buy more gifts for their loved ones, and that another 9% will prioritize gift buying instead of paying off debts or household bills. This is clearly a very unhealthy habit, and it is important to dig deeper into the reasons why this has become such a problem in our country. 

We can all relate to the fact that we do not want to be seen as cheap or heartless. This has proven to be one of the main reasons why so many people overspend on gifts during the holidays. Another major source for this dilemma is that most people tend to only see the short-term gratification they will get from gift-giving. They do not realize that this has significant long-term consequences and it only takes some thinking in order to create a spending plan so that they don’t land in massive debt or financial despair. Unfortunately, many people haven’t taken this into account and in 2022, the average cost of buying gifts per person was over $800. Of course it is great to give gifts to those you love, but it is not great to spend money that can be put toward something more important.

While the majority of people tend to overspend during Christmas, those who celebrate holidays such as Hannukah do not share the same customs. Many Jewish families either give a very small gift on each night of the celebration, a single large gift, or none at all. This culture has proven to be much more financially healthy and it also passively promotes smart spending. Children receive gelt, which consists of either money or chocolate. The fact that gifts are not a main part in the culture of the holiday points to the idea that they value the true meaning of family and friends more than just looking forward to presents.