What Are the Holidays Like for Americans Living below the Poverty Threshold?

The holidays are a time for joy and celebration, but for millions of Americans, they can be a struggle. The holiday season can be a very difficult time if you don’t have enough money to buy presents or put food on the table.

Read on to explore how holiday spending has changed over the past 20 years and discuss some ways to make the season more enjoyable for those who are struggling.

America: A Nation of Haves and Have Nots

The number of people living in the lowest income bracket in the United States has increased steadily over the past decade. According to a report by the US Census Bureau, 37.9 million Americans were in this bracket in 2021. That number has risen in the past few years as more individuals faced unemployment due to the coronavirus pandemic.

Many individuals and families find themselves unable to provide for their basic needs during the holiday season, let alone have enough money left over for celebrations or gifts.

Holiday Spending in the US over the Past 20 Years

Over the past two decades, American households have significantly increased their spending on holidays such as Thanksgiving, Hannukah, and Christmas. According to an analysis by Statista, the average American household planned to spend an estimated $932 on gifts in 2022, compared to $690 in 2002. This increase in spending has put a strain on those who are already financially struggling and highlights the widening wage gap.

The Holiday Season for Children

Children, one of our most vulnerable populations, make up a higher percentage of people living below the federal poverty threshold than the national average — 16.9 percent compared to 12.8 percent.

For children living at or below the poverty threshold, gift-giving holidays such as Christmas, Hanukkah, Diwali, and Kwanzaa can be particularly difficult. Many of them don’t receive any presents or other necessary items such as clothes, socks, and toiletries.

Fortunately, many nonprofit organizations assist families during the holiday season. Organizations like Toys for Tots, Pay Away the Layaway, and others collect donations of toys, clothing, and other gifts, which they then distribute to families in need.

How Inflation Is Hurting Average Americans

Inflation, the rise in prices of goods and services, can have a major impact on those who are already financially struggling. Inflation increased steadily throughout 2021 and 2022 and, unfortunately, is expected to continue its upward trend.

In 2022 inflation hit its highest level in over 40 years, and many families found themselves unable to purchase basic items due to rising prices while also having less money left over for presents or other forms of holiday cheer. A September 2022 Gallup poll found that 56 percent of Americans were experiencing moderate to severe financial hardships, which was especially concerning ahead of the winter season, when food and utility prices rise.

Nearly Half of Americans Dread the Holiday

A fall 2021 survey found that nearly half of all Americans were dreading the upcoming holiday season due to financial concerns. With rising prices and unemployment levels still high in 2022, even more individuals were worried they wouldn’t have enough money to provide for their families.

It can be difficult to find the motivation and energy to enjoy the holidays when you’re struggling financially, but it is important to remember that there are still plenty of ways to make the season enjoyable.

Is Consumer Spending on the Holidays out of Control?

Consumer spending during the holidays has grown significantly over the past two decades. This can put a strain on those who are already struggling financially and lead to an increase in debt levels.

To help prevent this from becoming an issue, many experts recommend setting a budget for holiday spending based on your income and sticking to it. Additionally, you can consider giving more meaningful gifts, such as homemade items or experiences, rather than material goods.

A Return to Simplicity and Tradition

The holiday season does not have to be expensive or extravagant to be enjoyable. Many people are turning back to simpler traditions such as gathering around a homemade meal, playing classic board games, or engaging in meaningful conversations with loved ones.

Taking time to appreciate the joy of being together can help make the holidays more special and memorable, even if you’re not able to buy each other expensive gifts. The idea of “voluntary simplicity” is a meaningful way to combat out-of-control consumerism.

How You Can Make a Difference During the Holidays

If you’re financially capable, there are many ways to help those who are struggling. Consider donating money or items such as clothes and toys to local charities or setting up an online fundraiser for families in need.

You can also volunteer your time at soup kitchens and shelters during the holiday season to provide food, shelter, and support to those in need. By working together, we can make sure that everyone has a chance to experience the joy and hope of the holidays.

No matter how difficult life may seem during the holiday season, there are still ways to find joy and make a difference. By seeking out simple pleasures, helping others, and focusing on meaningful activities, you and your loved ones can experience what the holidays are truly about.