Christmas Spending Habits: How Does Christmas Affect the Economy?
Updated: May 16, 2022
Are you a budget planner? Did you know that the numbers of economy skyrocket outrageously during the Christmas holidays? If not, let’s find out more about Christmas spending: maybe you'll see it's about time you reviewed your personal finance, too? 🎄
Christmas is here, along the usual hubbub of shopping and gift-giving. During this time of year, stores see an influx of customers and a growing demand for gift items. But the holiday cheer does more than send us into a shopping frenzy. What most of us never stop to think about is that this sudden injection of money has implications for the economy.
How does Christmas affect the economy?
Let’s take a look at a few Christmas shopping statistics to get some perspective.
56.3% of Americans set a budget for holiday spending in 2019 (Maurie Backman)
Only 64% of this number stuck to this budget (Maurie Backman)
Over 550 U.S. businesses produce toys for the Christmas season and enable over 6,000 jobs (Maxwell Aaronson, Office of Small Business, grow.exim.gov)
21.5% percent of people went into debt during Christmas in 2019
38% of consumers planned to spend less during the 2020 holiday season due to the economic downturn
65% of shoppers will choose the vendor that gives them the best prices or discounts (Spending habits this Christmas, talk-retail.co.uk).
Hearing economists discuss the issue of Christmas spending can be confusing. As you can see from the statistics, Christmas expenditure has a set of positives and negatives. Let’s discuss the effects of Christmas and how you can make smart passive income to help you through.
The Positives ✅
1. A boost in production
Manufacturers automatically cater to the sudden demand for gift items such as clothes, toys, and jewelry. This is most notable within the toy industry. The Christmas season provides a ripe opportunity for manufacturers to maximize their profits since the demand is overflowing.
2. Creation of temporary work
The holiday season brings s boost in all business activities. For most companies, the influx of shoppers often calls for additional staff. This creates a demand for temporary holiday workers.
Businesses like personal care stores, clothing and accessory stores, hobby stores, toy stores, and furniture stores are known for their holiday hires, and so are e-commerce giants like Amazon. This means your extra spending on Christmas can help put more money in several households.
If you need extra cash to boost the economy, consider trying out apps to make money, such as Honeygain.
3. Increase in purchase
It's the season of gift-giving! For most retail stores, it is the perfect time to offer discounts and offload stock. However, to make a lot of sales, businesses need to start their Christmas sales before Christmas. There is less and less activity as the year comes to a close.
As a consumer, you can make money online for your Christmas expenses - for example, there are several apps that allow you to make money with just your smartphone and a stable Internet connection.
Unfortunately, even with all these positives, Christmas spending can still affect the economy negatively. Let's see why!
The negatives ❌
1. Increase in debt
After reviewing the Christmas shopping statistics at the beginning of this article, you already know Christmas holidays encourage wasteful spending and inflate credit card debt. The commercialization of Christmas has put a lot of pressure on people to purchase expensive gifts and treat their loved ones.
Individuals with low income or savings often end up increasing their credit card debt during this time. Consequently, the burden of payment is then pushed over to next year and results in strained economic circumstances.
2. Disproportionate spending
Economists argue that Christmas spending is often focused on nonessential items even at a governmental-level, instead of taking care of economically viable projects like infrastructure. The idea is that this expenditure could be diverted to help projects such as investment, paying off a mortgage, or building roads, but we waste it on massive celebrations instead.
How to earn extra money from home on Christmas
A healthy economy generates extra money for Christmas spending, not the other way around. However, 2020 has been a difficult year, and the economy and our pockets could do with a bit of Christmas magic.
To help you out, we came up with a way for you to make money online. Honeygain allows you to make free money simply by sharing your Internet connection. By using our app, you can make enough money for the holidays. Once you start sharing your Internet connection with the Honeygain app, its business clients can use your device as a gateway and collect publicly available web data they need to improve their goods and services:
Carry out market research
Improve their SEO marketing
Improve their content delivery
...and so much more!
The best thing is, you can do this without risking your privacy.
Join the Honeygain community today ⬇️
Remember that your spending habits provide economic value. This doesn't mean you should avoid gift-giving – instead, try to generate as much smart passive income as you can. This way, you avoid holiday debt and have the opportunity to save some money.
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