While preparing to celebrate our loved ones this February 14th, it also often means spending more. And this year, Americans are spending more than ever. Valentine’s Day spending for 2023 is expected to be one of the highest spending years on record with the prediction that consumers will reach $25.9 billion in spending for the holiday.
Prices are normally inflated around now (who knew flowers and chocolates cost this much?), but consumers already faced high inflation rates throughout the past year. This is on top of the already ongoing credit debt crisis, as the U.S. credit debt reaches an all-time high of $930 billion. Many consumers are relying on credit to manage their finances and make ends meet. About 35% of Americans have carried over balances month to month, a lot of which is due to the inflation we’ve seen for months. The average credit card interest rate, about 20%, is already pretty steep, and carrying over balances long term will result in high amounts of interest to pay back. Be sure to pick your financial institutions carefully and check your credit report often.
As you celebrate loved ones this month, certainly take time and treat yourselves; be sure to budget your spending accordingly and make thoughtful purchases.
Remember that it’s also the thought that counts when it comes to gift-giving. Spend time with and care for the people you love, and that alone is worth quite a lot.
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