Do you have a budget for Christmas gifts? I recently heard on a financial radio podcast of a middle class family with
3 kids that spent $4-6,000 on Christmas each year! They believed this was average for middle income American families. They charged most of their gifts on credit cards and spent the rest of the year paying it off (or not). I was blown away!
It got me to thinking—what do most people spend on Christmas, Hanukkah, or holiday gifts each year. Since I found it fascinating, I thought you would too.
What Does the Typical Family Spend on Christmas Each Year?
I suspect that everyone thinks that what they spend is typical. The family on the podcast certainly did. The most reliable research I could find was from the aptly named American Research Group.
Annoyingly it is not clear how this applies to a family or how it changes with income levels. Does each parent count separately, thus doubling the number for a two-parent family, or does this number assume that it is per family unit. I’m guessing each one counts separately.