Faced With Tight Gift Budgets This Year, Americans Value Family Time
For Kay Meyers, and evidently for millions of others, new and creative ways of holiday gifting will be used this year, as Americans come to terms with today's tough economic times.
Take Ms. Meyers' giving agenda: This year, the Mukilteo, Washington, resident plans to treat family members and her fiancé - 22 people all told - to a week at a resort in Copalis Beach, Washington, where she owns a time-share. In contrast, last year, she took the family group, including 16 nieces and nephews, to a costlier ski trip in Idaho.
Moreover, she is asking friends to exchange with her a gift of a shared activity rather than a purchased item. Ms. Meyers, who owns a mini-storage facility, is taking her two employees out to dinner as a holiday gift this year; in contrast, last year she treated them to a two-nights, three-days' stay at a mountain retreat in Leavenworth, Washington.
The way Ms. Meyers sees it, "We don't have to spend a lot of money to enjoy ourselves. It's time we hunkered down and enjoyed things within our means."
That's a theme echoing across the United States this year. Data shows that many Americans, feeling less secure in their jobs and watching their investments pummeled in value, have put their holiday shopping lists on the chopping block. While that doesn't mean coal in everyone's stockings this year, it does mean that Christmas, Hanukkah, and Kwanzaa celebrations won't be as gift-laden and expensive as in recent years.
A bevy of surveys all point to thriftiness. For instance, the National Retail Federation has forecast $470 billion in holiday sales, a 2.2% rise from last year and significantly lower than the average 4.4% holiday sales growth over the past 10 years. Moreover, the International Council of Shopping Centers predicts a 1% gain in U.S. chain stores' 2008 holiday sales - the lowest percentage growth since 2002.
In its nationwide survey, business advisory firm AlixPartners found that 64% of respondents plan lower outlays for gifts this season. Fully 86% expect to spend $1,000 or less on gifts, versus 77% who said they spent $1,000 or less last year, and 37% said they expect to spend $250 or less this year, versus 21% who said they did so a year ago.
Such data show "a dramatic shifting in consumer gift-giving this year," said Matthew Katz, head of AlixPartners' retail performance improvement practice.
The most popular methods of cost-cutting in AlixPartners' survey:
spending less on each person, waiting for sales and specials, buying
less costly merchandise, giving gifts to fewer people, and cutting back on nonfamily gift-giving.
But when it comes to children, parents are hesitant to cut back.
In fact, as part of its holiday spending survey taken in September, TNS Retail Forward found that out of 13 spending choices, the category of "gifts for my children" had the highest percentage of respondents who expected to spend more for the holidays. Nonetheless, the TNS data show that, although 12% of respondents said they would be spending more on their children's gifts, 19% expect to spend less on them.
At the Web site Gifts.com, "we're getting more searches on gifts for kids, and they're taking place much earlier than last year," reports the site's "gift guru," Dana Schultze. "People don't want kids to lose out on Christmas this year."
If parents do need to pull back in that area, they should forewarn the kids, some gift consultants say.
"You can say things like, 'Mommy and Daddy spent too much money this year and learned a lesson, like the kind of lessons you learn in school. So we have to spend less this year in order to give gifts later on. But we want to give you five special gifts. So let's figure out what your five favorite gifts are,' " said Rhonda Grote at the Web site thinkthoughtful.com.
Will a frugal attitude endure after the economy brightens?
Perhaps not, some observers say - at least not to the extent of the belt-tightening expected this year. Decades of seasonal advertising has conditioned Americans to spend during the holidays, they say, and people simply enjoy splurging this time of year.
Even in these leaner times, Ms. Schultze of Gifts.com believes people can enjoy heartwarming holidays.
"Especially this year, people are looking at how to make family time more special - to spend time together, to have meals together, having their festivities at home. They're not focusing so much on gifts but on memories they can make together," she said. All of this could enhance the holidays for most people "even if they don't fill up the living room with gifts."
An increase in frugality doesn't have to dampen the holiday season. Among the money-saving tips:
• Agree among family members and friends to give presents only to children.
• Decide within the family, or among friends and co-workers, on a specified amount to spend on each gift.
Copyright © 2008 The Christian Science Monitor. All rights reserved.
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