I’m taking a brief break from the Economics 101 posts to concentrate on one of the most expensive times of the year – Christmas!
Where do we spend our money at Christmastime?
Here are all the ways you can spend money at Christmas time – and it can add up!
- Buying presents. In addition, you have to pay for shipping or gas for your car to go shopping.
- Food. Christmas dinner, Christmas baking, and of course – a few treats for yourself!
- Decorations – if you like things like a holly wreath and a live tree, then you’ll be shelling out every year for these. Things like Christmas tree ornaments and lights can be reused every year, so you shouldn’t be paying for these every Christmas.
- Travel. For some folks, it’s just a drive down the street – for others, it’s a plane ticket to see family.
- Alcohol – whether it’s for gifts or just to keep your sanity – this is another expense.
According to a study from Deloitte, Canadians can spend up to $1700 a year on Christmas!
How things will be different this year?
It’s too early for any studies to be out – but based on my own experience, I can guess the following:
- People will either be spending a lot less on Christmas because they just don’t want to go out shopping or they don’t have the money to spend. OR they will be spending a lot more because it’s one of the few things they can do. Just depends on the type of person they are.
- Travel costs will definitely be down – a lot of people who’d normally fly to see family just won’t be doing that.
- Food costs may end up being higher. Instead of one person springing for dinner and everyone bringing a side dish, we may all be doing our own small dinners this year.
What kind of economic lesson can we take from this?
I think the biggest thing to learn is that you don’t have to go overboard on Christmas. If you can’t afford to buy gifts for everyone that’s fine. If you want to host, but can only afford a basic dinner – that’s fine too! Anyone who truly cares about you should be understanding of your financial situation, whatever it is. While it’s tempting to splurge and get everyone a blowout Christmas, it’s not worth going into debt for.
How do you normally celebrate Christmas?
I’m usually pretty low-key – presents for my parents and any kids in the family only. Some nice dinners and some basic decorations. I do love lights though – they are so cheery when it’s cold and dark out! Let me know in the comments how you normally celebrate Christmas.
