Interest rates, gas prices and the monthly Consumer Price Index give us insight into the state of the economy, but a new study is taking a different approach. New research from Empower, a financial services company, looks at how much people are spending on others, including presents, leaving tips and even how much the Tooth Fairy is leaving under pillows.
Their “Going Rate” study focuses on how Americans give, tip and celebrate to gauge our financial wellbeing and how rising prices are impacting us.
- Half of Americans say they don’t know what the “right” amount is to give, but 50% admit they feel pressure to spend a certain amount on gifts.
- Giftflation is in effect, as 75% say gifts are more expensive due to tariffs and inflation. Six in 10 feel gifting culture has gotten “out of hand” and 48% are experiencing “gift fatigue.”
- According to respondents, the average “going rate” for a birthday gift is $56 for adults, $83 for kids. It’s $85 for a wedding gift; while the going rate for a holiday gift is $64, it’s $55 for Mother’s Day and $38 for Father’s Day, and for a teacher or coach gift it’s $15.
- For kids, weekly allowance averages $37 per child and Tooth Fairy payouts are now $14.87 per child.
- When it comes to tipping, people report leaving a median of 16% for takeout, 11% for food delivery, 14% for beauty services and 10% for rideshare services.
- Cash and gift cards are more acceptable as presents now than they were in the past, according to 79%.
- More than half (55%) think their generation spends more than others on gifts.
- Half (49%) of respondents say you should “pay for the plate” at weddings.
- The best presents can’t be wrapped, according to 44% who would rather give the “gift of time” than money or material things.
- Some are going to extremes to keep spending down, including a third who are adopting a “no gifts” policy this year, asking people not to buy them anything at all.
Source: USA Today⠀