'It's Kind of Scary': How Inflation Will Impact Gifting This Holiday Season

American families on strict budgets are struggling to give their kids the holiday experience they've come to expect.

learn more about Amanda Breen

By Amanda Breen Originally published Dec 13, 2022

FreshSplash | Getty Images

Gift-giving goes hand-in-hand with the holiday season, but for American families feeling inflation's burn this year, it's more stressful than ever before.

To combat soaring prices and provide their children with the holiday experience they've come to expect, many parents have had to tighten already strict budgets, CNN reported.

Related: How to Calm Financial Panic During Inflation Surges

But it's no easy feat: Inflation increased 8.6% from May 2021 to May 2022, according to the U.S. Bureau of Labor Statistics — the largest 12-month jump since the period ending in December 1981.

As of October, the average American household was spending $433 more per month to purchase the same goods and services as it did the previous year, per Moody's analysis reported by CNBC.

CNN spoke to second-grade teacher Lindsay Cook, whose family is living paycheck-to-paycheck for the first time.

Cook and her husband, a school security officer, have had to pull from their savings and rely on credit cards to keep up with essential bills — and holiday budgeting for two kids makes it that much harder.

"There's no sort of wiggle room," Cook told the outlet. "And it's kind of scary."

Related: 5 Ways to Really Get Away From Work During the Holidays

Despite recent inflationary pressures, the National Retail Federation forecasted holiday retail sales growth in November and December — up between 6% and 8% from 2021.
Amanda Breen

Entrepreneur Staff

Features Writer

Amanda Breen is a features writer at Entrepreneur.com. She is a graduate of Barnard College and recently completed the MFA in writing at Columbia University, where she was a news fellow for the School of the Arts during the 2020-2021 academic year. 

Related Topics

Editor's Pick

Have More Responsibilities at Work, But No Pay Bump? Use This Script to Get the Raise You Deserve.
Black and Asian Founders Face Opposition at All Levels — Here's Why That Has to Change
Career

7 Common Obstacles Aspiring Authors Face — and How to Overcome Them

Here are a few tips that will help you start writing that book you always dreamed about.

Business News

'Work for a Millennial': Employee's Viral Email Exchange With Boss Emotionally Praises Millennials in Management Positions

In a video that's been viewed more than 1.8 million times, 28-year-old realtor Kristen Mahon shared an email exchange with her boss, who she estimates is 6 to 7 years older than her.

Employee Experience & Recruiting

Ready to Hire? Here are the Best Recruiting Platforms.

When it's time to hire, finding quality job candidates doesn't need to be complicated. Job search sites can help you recruit and retain talent no matter your budget.

Business News

Massive Fire At Top Egg Farm Leaves Estimated 100,000 Hens Dead. What Does This Mean For Egg Prices?

Hillandale Farms in Bozrah, Connecticut went up in flames on Saturday in an incident that is still under investigation.

Leadership

Is Giving a TEDx Talk Really Worth It? Answer These 3 Questions First.

Giving a TEDx Talk is more than a passion project; it's a big investment. Here's how to think about returns.