BASKING RIDGE, N.J.— A new study reveals families will spend nearly $3,000 more on holiday expenses from Thanksgiving through New Year’s Day.
The report from Affinity Federal Credit Union shows most of those dollars will go towards hosting, travel, gifts and seasonal activities.
Affinity’s 2024 Holiday Spending Index analyzed holiday-related expenses across key categories to provide a full picture of how much Americans will spend this year, the CU said.
Hosting a traditional holiday meal for 12 people will cost an average of $344.61, which includes appetizers, main courses like turkey and ham, side dishes, desserts, and beverages. This represents a sizable portion of holiday budgets, Affinity said.
“Travel is another major factor contributing to rising holiday costs. According to last year’s AAA travel forecast, 115.2 million people were expected to travel at least 50 miles or more from home over the 10-day year-end holiday travel period, with families incurring significant expenses to reconnect with loved ones. For a family of four, the average cost of traveling by plane is $1,728. Those opting to travel by train face a slightly lower expense of $1,048, while traveling by car remains a more budget-friendly option, with gas prices averaging $3.09 per gallon as of Nov. 8 2024,” the credit union explained.
Holiday Spirit
In addition to travel and hosting, families will face additional costs through holiday-related activities and decor. The average family will spend approximately $415.27 on holiday-themed entertainment, which includes activities such as light shows, ice skating, and festive outings. Decorating for the holidays adds another layer of expense, with the average family of four spending $459.96 to bring the holiday spirit into their home through lights, ornaments, and other decorations.
“The holiday season brings families together but can also bring additional financial pressures,” said Grant Gallagher, AVP, financial wellbeing and brand communications at Affinity. “At Affinity, we’re dedicated to supporting financial wellbeing through resources and strategies that help families plan, budget and enjoy the season without unnecessary financial stress.”
Gifting, which accounts for a significant portion of holiday spending, contributes further to the seasonal expenses. For a family of four, the cost of gifts, holiday cards, and related expenses is expected to average $481.58, according to the 2024 Affinity Holiday Spending Index. This represents approximately 20% of the typical holiday budget, as families aim to share joy with loved ones through thoughtful giving.
The study’s research was conducted via an October 2024 review of national holiday spending trends and products and services. The data reflects estimated costs across key holiday categories.