Will Inflation Affect How You Spend This Christmas?
It’s been a crazy past few years to say the least. The pandemic has affected so much of our lives. Most of us have either lost someone to COVID-19 or have even gotten sick with the virus. The virus, along with other issues affecting the world, have impacted the economy worldwide.
Now, inflation has taken hold of the country, possibly influencing how we will spend our money this holiday season. How are the holidays looking for 2022? Well, let’s take a look at what could potentially be coming within the next month.
The Supply Chain
Read More »• Christmas Trees
• Electronics
• Toys
• Clothing
• Airplane Tickets
Whatever the case, prepare to pay more at the cash register. We recommend that you find what you can, when you can find it. Electronics, in particular, will see a big increase in prices, such as TVs, computers, video game consoles and more. Other companies like Sony and Samsung have warned consumers on short supply when it comes to their electronics. This could also drive prices even higher as the holidays get closer.
Online Shopping Could Increase
Two of the biggest opportunities consumers have to save money, even though inflation is at its peak, are Cyber Monday and Black Friday. If you want to avoid the crowds on Black Friday, Cyber Monday is your best bet. Although you may not see the biggest savings compared to Black Friday deals, you can still get your money’s worth. As inflation continues, we predict an increase for online shopping. In fact, we see consumers shopping a bit differently this year. Online stores that host third party sellers could see an increase in traffic. Consumers may resort to these types of deals if they can’t find what they want as gifts. However, you should always be careful with third party sellers. It is recommended to look at the consumer rating for the online store every time you shop. Rest assured that just as rising prices are certain this year, you can bet that scammers will be ready to prey on consumers shopping online.
More Crowds on Black Friday
As consumers look to save money this year, we foresee a huge turnout for Black Friday. As it turns out, Black Friday is when you’ll see the biggest savings of the year. In particular, door busters will have the most impact on your holiday savings. However, keep in mind that you will have to be at the door when they open the store to catch these deals. People usually begin to camp out a few days early to secure their spot in line. How much savings can you see? Well, consumers everywhere may see a savings of up to half off sticker price in some cases. The best deals are usually over by noon, but you can still get great deals throughout Black Friday weekend.
Christmas Gifts From Friends and Family
The month of December could see the biggest price hike in years. Those who couldn’t find those great deals on Cyber Monday or Black Fridays can expect to pay more. Because of inflation, we expect a different outcome for giving gifts. Christmas gifts for 2022 may be limited to family and close friends only. Recent trends show that many will opt for the holiday experience instead of giving gifts. What does this mean? It means that frequent gatherings will likely take place of the Christmas exchange traditions among friends. A festive dinner party for friends as the holidays get closer will become the norm this year, excluding gifts in the process. Moreover, gifts for family members will still take place with some pull back on spending. You may not see that big screen TV or new iPhone you wanted this year, but you can still expect a nice gift from the heart.
The Biggest Effects on Everyone’s Wallet
Although supply and demand are at the forefront of inflation, shortage on the basics will put a damper on our spending this year. Inflation has caused a domino effect on shortages ranging from gas to food and more. As a result, the average holiday spending per household has held steady at $1,455. Consumers look to spend less on gifts to an average of nine gifts compared to 16 gifts back in 2021. Traveling has also taken a hit as consumers look to save money. Less than 31% of Americans plan to travel this year. As compared to 42% in 2021, spending less money is certainly noticeable this upcoming Christmas for 2022. Because of inflation and limited spending, we forecast a rise on credit card spending as well. Soaring interest rates will also affect Christmas shopping this year.
What Will You Do?
Although holiday shopping may seem bleak for 2022, studies have shown a national growth of 6% to 8% in holiday sales for 2022. Still, holding back a bit or taking advantage of those savings is ideal this upcoming holiday season. Wise spending is certainly a must for every consumer shopping online or at the store. How you spend your money for Christmas will largely depend on where you find deals. Now, more than ever, consumers should consider those Black Friday deals along with Cyber Monday sales. By doing this, you could get your money’s worth on this year’s holiday spending. Depending on how this year turns out, inflation will continue to have an effect on the holidays for both 2022 and 2023.
