Americans Are Expected to Spend Over $1 Trillion This Holiday Season. What’s Your Plan?

You bought the gifts. Then you paid to ship two of them. You picked up groceries for Christmas dinner. And somewhere along the way, you agreed to bring a gift to a party you’d forgotten was on the calendar.

By January, you’re looking at your credit card statement, wondering how Christmas got so expensive. 

This year, the National Retail Federation expects U.S. retail sales to reach $1.013 trillion in November and December, up 4.2% from last year. That’s a forecast for retail sales across those two months, excluding auto dealers, gas stations, and restaurants.

Gallup asked Americans specifically about gifts. The average expected spending on Christmas and other holiday gifts was $1,011. More than a third of Americans, 36%, said they expect to spend at least $1,000. 

Maybe $1,011 sounds reasonable to you. Maybe it sounds like more than you could set aside between now and Christmas. Either way, you need a plan.

Start with what God has given you

Christmas reminds us that God gave us his Son. In 2 Corinthians 8:9, Paul points to the grace of Jesus as he urges the church to give. Then he says a willing gift is acceptable “according to what a person has” (2 Corinthians 8:12, CSB).

That’s worth remembering when you’re tempted to spend more than you have because you want someone to know how much you care. A handwritten letter to your parents might mean more to them than anything you could order. And if a family in your church is having a hard December, a grocery gift card might be the most welcome gift you give all season.

Make a Christmas plan before you shop

1. Put generosity in the budget first. Start with your local church. If you want to give beyond your regular giving, decide how much you’ll set aside. You may also want to help a neighbor or give to a ministry. Make those decisions before your shopping list takes up every available dollar.

2. Decide how much you can spend. Look at what you’ve saved and what you can set aside from the paychecks you’ll receive before Christmas. Leave enough to cover your regular bills, including the ones due in early January. Use what’s available to set your Christmas budget.

3. Budget for the whole celebration. Include the gifts, the shipping, the food, and the trip to see family. If you have $500 and expect to spend $150 on food and travel, you have $350 left. Write down who you’re buying for and what you’ll spend on each person. If the numbers are tight, talk with family now about drawing names or setting a gift limit.

4. Keep track as you go. Write down each purchase and check what’s left before you buy again. If you run out of room, adjust the list before carrying a credit card balance or using buy now, pay later to finish it. In January, pick a savings target for next Christmas. Setting aside $50 a month from January through November gives you $550 before December.

This week, take ten minutes to decide what you’ll give, what you’ll spend, and what you’ll set aside. With those decisions made, you’ll have more room to enjoy the people around you and celebrate what God has given us in Jesus.