Millions of Americans can’t afford to buy holiday gifts because of COVID-19, they say
In a survey fitted to represent all Americans, nearly one in three people said they are forgoing gift giving this holiday season because of the coronavirus pandemic.
Experts say their decisions likely mirror financial struggles brought on by unemployment, medical bills or extra costs at home due to remote work and virtual school.
The same survey found that about 102 million Americans will spend less on holidays this year, while 41 million said they still have credit card debt from last holiday season.
“Many people are still out of work and do not have extra money to buy gifts. They are focused on the essentials and just trying to get by,” Samuel Craig, a professor emeritus of marketing at New York University, told WalletHub, the personal finance website that conducted the survey. “Although I would have thought that more people would be trying to do something special for the holiday season to brighten their spirits in the face of continued social isolation.”
Despite a potential drop in spending, respondents said they would pay extra money for “peace and quiet” (46%) and a coronavirus vaccine (40%, or about 101 million people), according to the survey results.
Audrey Guskey, a consumer trends expert and marketing professor at Duquesne University in Pittsburgh, told Wallethub that holiday travel spending will also see major dips, while Christmas decorations sales “will increase significantly” because most people will spend the holidays at home.
Guskey said the National Federation of Retailers is predicting a drop of an average $50 per shopper — the lowest decrease since 2016.
For those who will be giving gifts this year, 45% said they will start shopping earlier than usual and 77% said they will do most of it online, which experts say is the best way to stay safe from coronavirus infection.
If a certain gift requires a stop at the mall, you should only make the trip if you don’t feel sick and have no coronavirus symptoms, the Centers for Disease Control and Prevention says. Delivery or curbside services are also safe options during a pandemic.
Other experts say to avoid peak shopping times, visit stores in your area and to search for open-air markets that offer space to physically distance from others, McClatchy News reported last week.
About 1,500 people were surveyed online, according to WalletHub. All responses were weighted by age, gender and income to “reflect U.S. demographics.”
This story was originally published November 16, 2020 at 10:18 AM with the headline "Millions of Americans can’t afford to buy holiday gifts because of COVID-19, they say."
