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December 27, 2024
Maybe we own more stuff than we should. No, this is not a plea for minimalism or the redistribution of wealth in order to limit the bounds of excess. Instead, this is an examination of what drives Americans to consume. Especially around the holidays, American consumers shell out large sums, even if they cannot afford it, to buy things they don’t really need. CNBC’s Lorie Konish reports on a LendingTree survey that found the 2024 holiday season led 36% of Americans to take on holiday debt, with an average balance of nearly $1,200. Why?
Certainly, American industry joins the image of a successful holiday with the purchase of expensive gifts or embarking on costly travel. It is easy to feel like one has the right to “treat myself” or their friends and family during the holiday season, and there is nothing wrong with that, as long as it doesn’t push a buyer into debt in order to do it. Unfortunately, the problem extends beyond the holidays. Rain or shine, Americans like to shop.
In a 2012 Psychology Today article, Dr. Peter G. Stromberg pointed out that, “we spend more on shoes, jewelry, and watches ($100 billion) than on higher education ($99 billion).” Even worse, consider what proportion of purchases are lost, unused, or thrown away. We love to buy stuff, but we do not always love to use the items we’ve bought.
Now, many folks might think there is nothing new here. So what? They might wonder. It’s not news to anybody that we buy lots of stuff. That attitude is a huge part of the problem. Not only do we spend ourselves in debt too often for purchases we don’t use, but we also refuse to see any issue with our decisions. A couple of weeks ago, The Cut’s financial advice columnist Charlotte Cowles penned a piece about holiday spending titled “Debt Isn’t Always a Bad Thing,” arguing that “…beating yourself up about it only makes you feel worse about a larger system that makes most of us feel pretty bad already.”
This is a dangerous mentality. Americans should not grow accepting of 20%+ interest rates to finance purchases around the holidays or any other time. Of course, every person and purchase is distinct, but I would caution everyone to think twice before swiping a credit card to make their next purchase. Is this something I need? Is this something I’ll use? Can I afford it? These are just a few questions that can provide helpful guidance at the checkout counter. Considering how much Americans already spend on stuff, one might be well served trying to answer them before pulling the trigger on a next purchase.
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