How millionaires are spending their money this holiday season
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On Thursday, December 2, 2021, pedestrians viewed the Saks Fifth Avenue holiday window displays in New York.
Bloomberg | Bloomberg | Getty Images
In spite of supply chain disruptions or inflationary problems, industry watchers and retail trade groups are still forecasting record levels of sales this holiday season.
The majority (68%) of the millionaires surveyed by the CNBC Millionaire SurveyAccording to them, they expect the holiday season will be similar this year as it was last year. The largest proportion of millionaires stated that they would spend less than $2,500 for the holiday season. This is significantly less than what was reported in 2019.
Below are some ways millionaires will spend their money during the holiday season.
Smaller sums
The largest number of millionaires (29%) predicted that they will spend $1,000 to $2,499 this holiday season. This is slightly more than 28% in 2018, but less than 34% in 2019.
Smaller sums — between $0-$499 and $500-$999 — saw slight decreases from 2020 but were still higher than what was recorded in 2019. For instance, 26 percent of millionaires predicted they would spend between $0-$499 and $500-$999 this year, as compared to 27% in 2018 and 19% for 2019.
One percentage point more people said they plan to spend over $25,000 than last year. That’s up from 2% in 2019.
The majority of millionaires claimed that they would spend the same or less than last year. Only 12% reported spending less while 21% reported spending more.
Three nineteen percent of millionaires who said that they would spend more in the coming year than last, or at least 10%, were millennials.
Problems with supply chains, inflation, and spending
Holiday shopping is being slowed by supply chain and inflation issues, which millionaires also feel.
28 percent of millionaires (28%) said that they will be gifting more gifts cards and less tangible presents this year due to possible disruptions or shortages in the supply chains. 33% of them said that they are doing holiday shopping earlier because of those factors.
7 percent of millionaires stated that they would give less gift this year because inflation.
20% said that they will increase their charitable donations this year. 7% stated they will be spending more and giving more this year following last year’s pandemic.
What are the top spending habits of the rich?
Unsurprisingly, millionaires’ age has a significant impact on who they will spend most money this holiday season.
32% stated that they would most spend their money on their children. 26% claimed they would most spend their time with their spouse. 19% of millennial millionaires said they would most spend their money on themselves.
For comparison, 27% said that they would spend most money on grandchildren and 24%, on their spouses, and 3%, on themselves.
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