How much does the average American spend during the holidays?

The holidays are upon us, and spending is on the rise as families purchase gifts and food for the occasion. Consumer spending peaks each year around Black Friday and Cyber Monday and continues at an elevated level through the end of the year. The Bureau of Economic Analysis (BEA) found that spending surged far above typical levels just as deals on gifts began to be offered. Around a third of shoppers begin their holiday shopping in November, but Bankrate, the financial news outlet, recommends starting as early as possible to save. As inflation has softened this year, the number of shoppers who say that they are feeling the burden of higher prices has fallen from 40 to 33 percent compared to the sentiments captured in 2022.

Despite inflation, shoppers did not shy away from the two-day sales event. Retailers are projected to earn $10 billion on Black Friday alone, marking a 7.5% increase from last year’s sales. Meanwhile, according to Salesforce, online spending on Black Friday surged by 9% YoY, reaching $16.4 billion.

Gifts make up the most renowned spending category

Exploding Topics collated data from various sources to find that the average household that celebrates Christmas spends $1,001 on the holiday; this amount represents around one week of earnings for the average worker in the US.

During the holiday season, people spend most of their money on buying gifts, with an average spending of $648. Additionally, $231 is spent on food and decorations.

Traveling will be cheaper this year

The remaining budget is usually spent on other things, such as travel expenses. Those who are traveling by plane this holiday season will benefit from the 13.5 percent decrease in airline ticket prices that has occurred over the past year. Drivers will also see lower prices, as airfare has decreased because of a more general trend in the fall of gasoline prices, which have dropped 8 percent since November 2022.