With the holiday season fast approaching, parents often find themselves grappling with the question of how much to spend on gifts for their children. Within many families, gift-giving traditions differ drastically based on various factors such as the age of the children or the family's financial status.
According to recent trends, parents, on average, are reported to spend approximately $164 on each child's holiday gifts. Interestingly, spending patterns vary based on the child's age - with parents spending less (approximately $119) on infants under 12 months, compared to older children who can expect gifts worth around $198.
In light of the challenging economic situation marked by new tariffs and inflation not many parents intended to alter their holiday gift-giving plans. Only a minority, about 14%, planned to curtail their expense by buying fewer presents than they did the previous year.
Another interesting revelation from this data is the spending habits of Gen Z parents compared to Millennial ones. Despite typically earning less, Gen Z parents seem to put aside more money for their children's gifts.
Parenthood brings about many first-time experiences, including the joy of holiday shopping for a child. Parents of infants, particularly, have expressed their uncertainty regarding the amount to spend on gifts. A common sentiment is that infants are usually more interested in the packaging than the actual gift.
When posed with the question of how much parents allocate for their children's gifts during Christmas, many found it tricky to answer. After all, striking a balance between making the holiday magical and maintaining a budget can be challenging.
A recent poll revealed that mothers plan to spend an average of $164 on each child's gifts, with only a 5% decline from the previous year's average of $173. This shows the resilience of parents trying to maintain the festive joy for their children despite economic trials.
It's important to note that the $164 average does not account for other holiday-related expenses. These may include things like professional family photos, a Christmas tree, or holiday festive events.
A child's age significantly influences how much parents spend on gifts. Therefore, equal expenditure on gifts for children of different ages is usually not the norm. Parents sometimes invest the remaining amount in savings for their youngest child.
Inflation has certainly cast a shadow on holiday shopping, with household spending having increased by $208 from a year ago. Tariffs have also greatly affected the toy industry. As a result, popular toy brands are hiking their prices to accommodate the new import fees.
Despite these challenges, most moms aren't planning to reduce the number of gifts for their children. Many are determined to maintain or even exceed the amount of gift-giving from previous years.
This year, Gen Z moms are leading in holiday spending. They plan to allocate an average of $165.90 for each child, which is more than the $160.39 expected by Millennial moms. This is quite generous considering that Gen Z parents generally have lower incomes in comparison to their Millennial counterparts.
While gift-giving is an emblem of the holiday spirit, the importance of creating fun and happy memories should always be the focus. Whether you plan to spend $30 or $300, making the holidays special for your family is what really matters.
Regardless of the budget, parents often add essentials like wipes, warm hats, and silicone teethers to their children's gifts. Some go a step further and include fun presents like wooden blocks and custom board books. Interestingly, sometimes the most popular item on Christmas day turns out to be the humble strip of tissue paper.
Expenditure insights were largely drawn from the What to Expect Talk to Moms Monthly Poll. The survey was conducted over a period of about 10 days and involved 509 women aged between 18 and 44 who had at least one child aged 5 or under.