Making A List And Checking It Twice

I'm Making a List and Checking It Twice

I read an interesting article in TIME Magazine by Joel Waldfogel, the author of Scroogenomics: Why You Shouldn't Buy Presents for the Holidays.

It is estimated that Americans spend $70 billion a year on presents most people do not want. Take, for example, all of the "As Seen On TV" gadgets, fruit cakes, and Christmas sweaters lining store shelves this time of year. These items are placed strategically in the front of the store, tempting consumers to pick one up for the hard-to-buy-for person on their shopping list.

According to Waldfogel's theory, the holidays are a $25 million loss to society. We waste our wealth on purchasing gifts for our 2nd tier family and friends, the ones we see only once in a while and for whom we have no idea what to buy. Our gift giving should pertain only to the people we know very well, our immediate family and closest friends. The money we spend on gifts people don't want could be used to support a charity, pay down consumer debt, or save a bank.

If you get time, be sure to read Waldfogel's article or visit his website to learn about how Christmas spending has actually declined since the 1920s.

I am off to finish my shopping and spread the wealth. Happy Holidays from all of us at Relocation Insurance Group!

Tell us about your holiday shopping trends on our blog. Did your budget increase this year? Have some long-distance relatives been dropped from your shopping list? What is on your wish list?