Christmas Spending Habits: How Does Christmas Affect the Economy?
Updated: Jan 7
Are you a budget planner? Did you know that numbers in the economy outrageously prompt out during the Christmas holidays? If no so, let’s discover all about Christmas spending - maybe it is about time to do some personal finance review? 🎄
Christmas is here and with it 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 don’t realize, 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
Over 550 U.S. businesses produce toys for the Christmas season and enabled over 6,000 American 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 plan to spend less during the 2020 holiday season due to the economic downturn
65% of shoppers will choose the channel 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. Honeygainers, 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 demand is overflowing.
2. Creation of temporary work
The holiday season brings with it increased business activities. For most businesses, the influx of shoppers often calls for additional staff. This creates a demand for temporary holiday workers.
Businesses such as personal care stores, Clothing and accessory stores, hobby stores, toy stores, and furniture stores are known for their holiday hires. Your Christmas spending can help put 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, this 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 toa close.
As a consumer, you can make money online for your Christmas expenses. There are several apps to make money. All you need is a phone and some internet. Read about it here - How to Earn Money with a Smartphone.
But even with all these positives, Christmas spending can still affect the economy negatively. Let's check it out.
The negatives ❌
1. Increase in debt
From our Christmas shopping statistics, you can tell that the Christmas holiday encourages wasteful spending and inflates credit card debt. The commercialization of Christmas has put a lot of pressure on people to purchase gifts and treat their loved ones.
Most individuals with low income or savings often end up inflating their credit card debt during this time. Consequently, the burden of payment is then pushed over to the new year resulting in strained economic circumstances.
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2. Disproportionate spending
Economists argue that Christmas spending is often focused on nonessential items instead of economically viable projects such as infrastructure. The idea is that our expenditure can be diverted to help projects such as investment, paying off a
mortgage, or building roads.
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 invented a way for you to make money online. Honeygain app, 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 share your internet connection with the Honeygain app, companies, use the information to improve their goods and services.
Carry out market research
Improve their SEO marketing
Improve their content delivery
The best thing is that you can do this without risking your privacy.
Join the Honeygain community today. ⬇️
Remember that your spending habits can provide some economic value. However, this doesn't mean that you should avoid gift-giving. On the contrary, 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.
Luckily you can learn how to earn extra money from home through Honeygain.
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