A recent survey reveals that parents with children under 18 are feeling significant pressure to exceed their holiday gift budgets, often spending more than they can comfortably afford. Conducted by NerdWallet, the survey shows that these parents plan to spend an average of $1,070 on gifts this season, a stark contrast to the $860 budget of parents whose children are older.
Many parents are motivated by the desire to create a joyful holiday experience for their kids. Kimberly Palmer, a personal finance expert at NerdWallet, explains, “For a lot of parents, ensuring their kids have a truly happy festive season drives them to spend more on gifts, as seeing their children’s joy is a powerful motivator.”
The survey highlights the emotional challenges faced by parents, with 48% of those with younger children admitting that guilt compels them to overspend on holiday gifts.
Additional findings from the survey reveal that:
- 12% of parents plan to prioritize gift purchases over paying regular bills this season.
- 38% expect to incur more debt than usual to fund their holiday shopping.
- 15% will opt to buy some secondhand gifts to manage costs.
- 13% anticipate tapping into their emergency savings to cover gift expenses.
- 29% intend to reduce the number of people they buy gifts for compared to previous years.
As the holiday season approaches, the financial strain on parents continues to grow, underscoring the challenges of balancing festive spending with financial responsibility.
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