Inflation has many spending less on gifts; some will skip them

AUGUSTA, Ga. - Christmas may be bright for some families, but it’ll be bleak for others who are feeling the pain of inflation.

So bleak that 1 in 3 Americans will be foregoing gifts this year, according to a shopping survey from WalletHub.

Of those who don’t skip gifts, 28% plan to spend less this year, the survey found.

The numbers are similar to what Georgia-based financial services firm Primerica found – that 83% of middle-class Americans are planning to spend the same or less than what they spent last year.

“We’re not even quite back to where we were in January 2019. We’re almost there. We’re about 99 percent,” said Peter Schneider, president of Primerica. “There’s some hesitation going into the holiday season. I think there’s a little bit more discipline than there used to be because we’ve gone through a period of high inflation. Everyone feels that.”

On a recent shopping trip, Tresia Jackson of Lithonia said she worries about overspending. She makes a holiday shopping list, but like so many people, she has a hard time sticking with it.

“I’ll make a list, but then again, for the grandbabies, I’ll go and then I’ll be like, ‘I like this, I like that.’ So that’s where I get caught,” said Jackson.

It’s important to outline a budget for yourself. Schneider says 76% of people who make a budget end up keeping it. He also says to review the list of people you’re buying for.

“Look at your holiday list and make sure that everyone on it, you want on it,” said Schneider.

Primerica’s survey also found that families plan to shop for deals. But it’s easy to go overboard when shopping either in-store or online. So Schneider suggests you keep your receipts and when January rolls around, take a realistic and honest look at what you spent.

“Credit card companies will itemize what you spent. So, you can look at the categories - restaurant charges, entertainment, transportation, housing, medical. These are all the big drivers of a budget,” said Schneider.

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