As Valentine’s Day approaches, more and more money is being spent on the holiday on average. But that doesn’t mean that people are buying more things. In fact, it’s the opposite: people are spending much more for less. So what’s the deal with the price hike?
Turns out it’s not all that out of the ordinary. Net expenditures for February 14th have been going up since the dip from quarantine, according to Insider Intelligence.
Source: National Retail Federation, 1/25/2023
But what’s curious here is that these jumps in price level since 2021 are larger than annual inflation permits alone (according to fitsmallbusiness, they jumped ~8% last year, which had an inflation rate of just ~3%). This means that an inference can be made about consumer spending habits, and gift expectations are a good place to look.
Source: wallethub
Maybe consumers don’t need to be spending that much after all. According to a poll by Trustpilot, 27% of Millennials and Gen Z feel more pressure to spend more this year than in 2023. This is concerning, since last year an average of $192.80 (according to the National Retail Federation) was spent on Valentine’s day-related items. However, according to a survey by wallethub, expectations for gifts were on the low side, with only 9% saying they expected over $100 from their partner, and 35% saying they expected in the range of $1-$49. All that is to say, if you’re expecting to be making a Valentine’s Day purchase this year, maybe try opting for a more tame gift – your partner will likely not think any less of you for it!
