Have you ever wondered why people and Companies tend to spend more during this time of year? From the pressures of tradition and year-end reflection to the temptations of buying for ourselves and justifying overspending, understanding these triggers is the first step toward regaining control of your holiday budget.
The holiday season is upon us, and don’t our bank accounts know it! Unsurprisingly, household spending spikes towards the end of the year as we begin planning Christmas shopping and holiday celebrations. But if we’re not careful, the season of celebrations can bring with it some scary spending.
According to WorldRemit’s 2023 Cost of Christmas study, families around the world spent up to 24% more on Christmas. This year 2024 the figures are expected to double.
In African countries, up to 84% of a family’s monthly income is expected to be spent on Christmas.
According to world remit, a household in Uganda spent about $64( 236,500),Kenya $215,Rwanda $239, United States of America $1,205 and Canada $1,717
What do people spend money on? Case in point 🇺🇬 An average household spends:
56% of the revenue on food
20% decorations and related stuff
23% on gifts.
Out of curiosity, I have found the following to the the emotional triggers for Christmas spending:
The Fear of Missing Out (FOMO): FOMO works in different ways. You see your neighbours spending $100 on a Christmas tree. You also get it. After all Christmas comes once a year. Duh!
The write-off mindset: When a new year is just around the corner, it’s easy to mentally write off the final weeks of the year and vow to fix everything in January. This can lead to mindless spending and taking your eyes off your budget when it matters most.Â
One would go ahead to ask why a biggest percentage of the money in Africa and specifically Uganda is spent on food. Simple! Africa is about community.
The story is different in Canada where:
55% is spent on presents and gifts
26% on decorations
23% on food.
Why should you care about these statistics? Christmas season is the best season to make money for a business. In the past we have made upto 20% of our yearly income in December. When you understand the trends you can know how to position yourself.
I have more to write but I got to go and celebrate.
Merry Christmas!!!
