Holiday Gift Spending Falls 21%

Residents of Mecklenburg County can expect a tighter holiday season in the wallet. The average consumer plans to spend about $880 on gifts this year, a 21% drop from the roughly $1,100 spent in the previous holiday cycle, according to a report from NerdWallet released today.

Kim Palmer, a personal finance expert at NerdWallet, said inflation is the main driver behind the reduction. She noted that rising prices across many consumer categories are forcing households to rethink their budgets. “People are really forced to think, OK, how can I cut back while still celebrating the season,” Palmer said. “And so, people are doing that by spending less overall.”

The spending cuts extend beyond gifts. Palmer explained that families are also reducing travel expenses and choosing to stay closer to home during the break. The financial stress is prompting consumers to prioritize essential spending over discretionary holiday activities.

Palmer advises shoppers to create lists early and spread purchases over several months rather than concentrating buying in December. She also warned against relying on “buy now, pay later” options. “It’s a little bit risky because it’s a form of debt and you have to pay it back eventually, so that can be difficult once January hits,” she said.

To save money, Palmer recommends tracking items on gift lists and waiting for price drops that often occur as the holidays approach. She urged consumers to avoid using emergency savings for holiday shopping and to stick strictly to their lists to prevent impulse purchases.