A Nation of Grinches? One-Third of Americans Don’t Plan To Give Gifts This Year

As the holiday season approaches, the festive spirit is accompanied by a sobering reality — one in four Americans still grapples with the financial aftermath of the 2022 holidays. It's now hitting a lot harder than people expected.

Compounded by economic challenges and inflation, the ripple effect of last year’s spending looms large, with over one-third of the population reportedly making a difficult decision — forgoing the tradition of gift-giving this year in an effort to keep more money in their wallet.

1 in 4 Americans still paying off 2022 holidays

The aftermath of holiday spending often reveals itself in consumer credit card statements; for 25% of Americans, this is an ongoing reality. The financial hangover from the 2022 holidays persists, creating a challenging backdrop for the approaching festive season. The weight of past spending decisions, particularly during a time meant for joy and generosity, raises questions about the long-term impact on financial well-being.

Fewer consumers can afford to buy gifts.

In a year marked by economic uncertainty and inflationary pressures, more than one in three Americans is navigating financial constraints. According to a survey from Wallet Hub, 33% of respondents now deem the annual tradition of gift-giving a luxury. The survey findings highlight a poignant shift in priorities as individuals grapple with tightened budgets and difficult financial choices.

How to protect your finances

Acknowledging the challenges is the first step toward effective financial management. To safeguard personal finances during these trying times, consider the following strategies.

Look for discounts

Crafting a realistic holiday budget and adhering to it rigorously can mitigate financial strain. Early planning can allow saving to a dedicated holiday fund. Seeking discounts and strategic purchasing contribute to a more manageable financial burden.

Plan to avoid stress

Proactive holiday shopping prevents last-minute chaos and allows for thoughtful, budget-conscious decisions. Avoiding procrastination can be crucial in reducing stress and making sound financial choices.

Consider homemade gifts

Explore homemade gifts or shared experiences to embrace the sentiment of the season. The personal touch adds a unique flair to your gestures and can be a cost-effective alternative to store-bought presents.

Shop online

Purchasing targeted gifts online can reduce mindless spending in stores. It also allows shoppers to shop for the best deals and compare prices across vendors. While many perceive shopping online to be a trap to spend more money, it can actually help you become a savvy shopper. 

Prioritize debt

If you happen to be in the position that many Americans were last year and find difficulty this holiday season, prioritize clearing your debt. The holiday season will pass in a month, but debt will remain. It is crucial to think ahead. Consumers still in debt from last year’s holiday season should consider payment plans to pay down debt. Those in financial hardship and considering whether they will have enough to pay for this year’s gifts should consider the high-interest rates on new debt once accumulated.

Bottom line

As we navigate the holiday season, it’s crucial to acknowledge the financial strain that many Americans are experiencing. The decision to forgo gifts is not a reflection of diminished holiday spirit but a pragmatic response to economic challenges. By adopting responsible financial practices, individuals can weather a potentially difficult holiday season and find joy in spending time with loved ones instead of adding on financial strain.

Lucrative, Flat-Rate Cash Rewards

Wells Fargo Active Cash^® Card

5.0

FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.

Wells Fargo Active Cash^® Card

Apply Now

Rates and fees

Current Offer

$200 cash rewards bonus after spending $500 in purchases in the first 3 months

Annual Fee

$0

Rewards Rate

Earn unlimited 2% cash rewards on purchases

Benefits and Drawbacks

Benefits

• Low spend threshold for its welcome offer — $200 cash rewards bonus after spending $500 in purchases in the first 3 months
• Cell phone protection benefit (subject to a $25 deductible)
• Can redeem rewards at an ATM for literal cash

Drawbacks

• Foreign transaction fee of 3%
• No bonus categories

Card Details

• Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.
• Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
• Earn unlimited 2% cash rewards on purchases.
• 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 19.74%, 24.74%, or 29.74% Variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
• $0 annual fee.
• No categories to track or remember and cash rewards don’t expire as long as your account remains open.
• Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
• Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.