I recently came across a video on Facebook titled, “Celebrations keep you BROKE!”
The speaker talked about holidays and significant life events have transformed into opportunities for strategic marketing and spending sprees. From Black Friday, where companies shift from operating “in the red” (losing money) to being “in the black” (making a profit) through heavy sales and promotions, to the emergence of Brown Thursday, where Thanksgiving dinner times are moved earlier to accommodate evening shopping deals, the commercialization of traditions is reshaping family and cultural norms. Add in Cyber Monday, a digital follow-up to Black Friday, and you have a trifecta of shopping days designed to capitalize on consumer behavior during the holiday season. Beyond these specific days, the rhythm of consumerism continues year-round, fueled by key dates like Christmas, New Year’s Eve, and life events such as birthdays, graduations, and vacations, driving spending cycles that rarely slow down.
After watching the video, I thought it would be a good idea to provide context to exactly how much money is being spent each month “celebrating.” From fireworks and parades to gift-giving and family meals, holidays in the United States are a vibrant mix of tradition and celebration. But beyond the fun and festivity lies a significant financial aspect. How much do Americans really spend on holidays throughout the year? Let’s dive into the spending trends for major U.S. holidays, uncovering consumer behavior and their economic impact.
This article examines spending habits tied to holidays in the United States, offering insights into average spending per person, total projected spending, and the categories driving these expenses. Whether it’s for love, family, or patriotism, holidays are a consistent driver of consumer activity and retail sales.
January: New Year’s Day
Date: January 1
New Year’s Day marks the start of the holiday calendar. While exact spending figures are limited, we know that 92 percent of adult Americans celebrate bringing in the New Year. We also know that dining and alcohol consumption is way up. In fact, champagne sales during New Year’s celebrations account for 25 percent of its annual sales. Americans often spend on celebratory gatherings and special meals to ring in the new year. A national survey found that more than 60 percent of people plan on spending at least $50 on food and entertainment on New Year’s Eve.
February: Valentine’s Day
Date: February 14
A day for expressing love and affection, Valentine’s Day is a major spending event. In 2024, Americans were projected to spend $25.8 billion, with an average of $192.80 per person on gifts, dining experiences, and flowers.
March: St. Patrick’s Day
Date: March 17
Celebrating Irish heritage with parades, green attire, and festive meals, St. Patrick’s Day generated $7.2 billion in 2024, averaging $44.40 per person. Popular spending categories include decorations, food, and drinks.
April: Easter
Date: Varies
Easter, a Christian holiday commemorating the resurrection of Jesus Christ, blends religious observance with family traditions like egg hunts and special meals. In 2024, spending reached $24 billion, averaging $192.01 per person on candy, clothing, and celebrations.
May: Mother’s Day and Memorial Day
Mother’s Day: (Second Sunday in May)
Mother’s Day is a heartfelt occasion honoring mothers and mother figures. In 2024, Americans spent $33.5 billion, averaging $254 per person, on gifts, flowers, and dining out.
Memorial Day: (Last Monday in May)
Observed to honor military personnel who died in service, Memorial Day is marked by parades, family gatherings, and barbecues. Nearly half of Americans celebrated in 2024, with spending focused on food and beverages.
June: Father’s Day
Date: Third Sunday in June
Father’s Day celebrates fathers and father figures with gifts like tools, gadgets, and dining experiences. For Father’s Day, the anticipated expenditure was around $22.4 billion, with an average of $189.81 per person.
July: Independence Day
Date: July 4
The Fourth of July is a patriotic holiday featuring fireworks, parades, and barbecues. Americans spent an estimated $9.4 billion on food alone in 2024, averaging $90.42 per person.
August: Back-to-School Shopping:
Back-to-school shopping is a major spending season, with parents purchasing supplies, clothing, and electronics. In 2024, spending reached $41.5 billion, averaging $890 per household.
September: Labor Day
(First Monday in September)
Labor Day honors the contributions of workers with parades, family outings, and retail sales. While specific spending data is scarce, it marks a significant period for shopping deals.
October: Halloween
Date: October 31
Halloween is a playful holiday with costumes, trick-or-treating, and spooky decorations. In 2024, Americans spent $10.6 billion, with 68 percent of shoppers planning to spend under $100. Candy, costumes, and decorations dominate the spending categories.
November: Thanksgiving
Date: Fourth Thursday in November
Thanksgiving is a time for gratitude, family, and feasting. In 2024, 87 percent of Americans planned to celebrate, contributing significantly to food and travel expenditures. Black Friday and Cyber Monday follow, kicking off the holiday shopping season.
December: Christmas
Date: December 25
Christmas is the crown jewel of holiday spending in the U.S. In 2023, total holiday retail sales were projected to reach $957 billion, with an average of $1,778 per person. Popular spending categories include gifts, decorations, and festive meals.
Holiday spending plays a crucial role in the U.S. economy, driving retail sales, creating jobs, and boosting local businesses. Retailers rely on these peak seasons to achieve yearly revenue goals, while consumers use them to create cherished memories. However, overspending while celebrating these holidays can lead to financial strain. It’s important to be proactive, intentional and engage in mindful spending when it comes to celebrating. Something that is hard to do when you consider alcohol plays a major part in celebratory activities. After reading this, you can no longer blame your overspending on the alcohol.
As you can see, celebrating doesn’t come cheap. What’s missing from the list is birthday, and graduation celebrations. Average cost for birthdays including gifts and parties is approximately $550 per person. The cost of hosting a graduation party in the United States varies based on factors such as location, number of guests, and chosen amenities. On average, expenses can range from $1,000 to $1,500.
Whether you’re planning for Easter brunch, stuffing stockings for Christmas or back-to-school shopping, proactive planning and thoughtful spending can ensure you enjoy these festivities without breaking the bank.
(Damon Carr, Money Coach can be reached at 412-216-1013 or visit his website at www.damonmoneycoach.com.)