Thanksgiving on a Budget: How Inflation is Shaping Holiday Plans
As Thanksgiving passes, American families are feeling the pinch of persistent inflation, which has surged by 19% compared to last year. A recent study from LendingTree highlights how this economic pressure is influencing holiday celebrations, leaving many households scrambling to adjust their budgets.
The Cost of Celebration
According to LendingTree’s findings, hosts are preparing to spend an average of $431 on food, drinks, and decorations for their Thanksgiving gatherings. This figure breaks down into approximately $265 allocated for food and beverages and an additional $166 earmarked for festive decor. Interestingly, the number of guests expected at these gatherings remains steady at around 11—just like last year.
However, inflation isn’t just a passing concern; it’s front and center in the minds of many potential hosts. A significant 60% reported that rising prices have altered their holiday plans. Specifically, 27% indicated they would modify their menu choices due to costs; another 26% plan to rely more heavily on coupons; while about 9% have opted out of hosting altogether because they find it too expensive.
Matt Schulz, chief credit analyst at LendingTree, emphasized the ongoing impact of inflation during a recent interview with FOX Business: “While price increases may not be as steep as in previous years, they remain a significant hurdle for those planning Thanksgiving festivities.”
Financial Strain Among Hosts
The financial burden is palpable among prospective hosts this year. Over one-third (36%) expressed that their planned spending would create financial strain. Alarmingly, about 14% regret deciding to host altogether—an indication that even traditional family gatherings are becoming less feasible under current economic conditions.
To cope with these challenges, many hosts anticipate asking guests for assistance either through cash contributions or by bringing dishes or drinks along with them. Approximately 60% expect some form of help from attendees—a trend that could reshape how we view potluck-style dinners moving forward.
Schulz pointed out the social dynamics at play: “We’ve all been there when someone shows up empty-handed while everyone else contributes something,” he noted. “This survey suggests that such behavior doesn’t go unnoticed.”
Alternatives for Guests Who Can’t Contribute Financially
For those who might not be able to contribute financially or bring food items but still want to pitch in during Thanksgiving celebrations? There are plenty of ways you can help without breaking the bank! Schulz suggests volunteering your time—arriving early can make a world of difference when it comes time for setup or cooking duties.
“Offering your assistance with tasks like decorating or even picking up relatives from the airport can show your support without costing you anything,” he explained.
Smart Spending Strategies
As families navigate these challenging times filled with rising costs and tight budgets this holiday season—and beyond—it’s crucial not only to shop smart but also utilize credit cards wisely if needed. Schulz recommends looking into cards offering substantial rewards tailored specifically toward travel expenses if you’re planning on hitting the road this season.
“If you’re traveling over Thanksgiving weekend,” he said enthusiastically,“a rewards card providing discounts on airfare or hotel stays could significantly ease your financial burden.”
Moreover, some credit cards offer impressive cashback options exceeding typical rates found elsewhere—making it worthwhile for consumers to consider which card they use when making purchases related directly tied into holiday spending plans!
Conclusion: Navigating Inflation This Holiday Season
In summary? While high inflation continues affecting household budgets across America—the spirit behind gathering together remains strong! By being mindful about spending habits while encouraging guest participation through various means—we can all enjoy what truly matters most during this cherished time spent amongst family & friends!
