As New Jersey families—and those across the country—prepare for the holiday season, they should budget for a significant increase in seasonal expenses. New data aggregated by the Basking Ridge-based Affinity Federal Credit Union projects that Americans will spend an average of approximately $2,828.29 on holiday-related costs this year.
This figure marks a 2.9% increase from last year’s spending of $2,749.42, aligning directly with the national inflation rate. The findings come from Affinity’s second annual Holiday Spending Index, which provides a comprehensive look at costs across key categories from Thanksgiving through New Year’s.
The index reveals that while overall spending is up, certain categories are seeing sharper increases:
- Hosting: The cost of hosting a holiday meal for 12 people is expected to average $362.80, up about 5% from last year. This rise is primarily driven by sharp increases in beverage and ingredient costs, including coffee, tea and wine.
- Experiences: Spending on seasonal activities such as ice skating, light shows, and crafts is seeing a nearly 10% increase, totaling $454.38 per family this year.
- Gifting: Gifting remains a substantial part of the budget, averaging $495.08 for a family of four (about 18% of total spending), driven by modest price increases in shipping, toys and apparel.
Travel continues to be a major expense, with an estimated 119.3 million people expected to travel 50 miles or more between Christmas and New Year’s. For a family of four, train travel averages $1,056, though driving remains the most economical choice.
Leaders at Affinity, whose mission centers on financial wellbeing, emphasized the importance of planning.
“The holidays highlight both the joy of giving and the reality of higher costs,” Grant Gallagher, director, Financial Wellbeing and Brand Communications at Affinity said. “We know this time of year can stretch budgets, which is why awareness and preparation are key. When families understand where their money goes, they’re better equipped to make decisions that support their wellbeing.”
Kevin Brauer, president and CEO of Affinity, reinforced this commitment, stating, “At Affinity, our focus is on supporting members’ financial wellbeing every day of the year, so they can approach the holidays with confidence and peace of mind.”
Affinity’s Certified Wellbeing Coaches are encouraging families to utilize resources like tracking spending, prioritizing needs, and leveraging rewards programs to balance holiday enjoyment with financial stability.
