Most companies and organizations give their workers a holiday bonus as a “gift” from the business. Bonuses can range from 2%-5% of your average salary. Although that doesn’t seem like a lot it can sure help in the long run. The real question is, what do people do with this money?

In 2022 studies indicated that 36% of the people who had received a Christmas bonus put it towards Christmas gifts or already bought gifts (restore the money taken out for gifts). 33% had used it for bills and household payments. 27% had spent it on travel or a fund for a travel goal. Then 20% was put towards the cost of living and another 20% investments/savings. The lowest percentile was 4% for retirement money. The study shows most people either spend it or use it to pay off some debts. 

36% of people with a Christmas bonus spend it on gifts and that is not a bad idea. The cost of inflation has gone up at insane rates. The latest inflation rate during this time of year is 3.2%. Over 1 out of 3 Americans are skipping over half of the Christmas shopping due to these insane prices for everything and anything. Clothes, toys, makeup, household gifts, everything. The average American this time of year works double the usual overtime rate to get a higher pay.   

Now there are many tips to help save money for holiday shopping. Here is a list of some holiday gift-shopping tips:

• A good shopping budget would be 1.5% of your salary. For example, if you average $50k a year it would be a good idea to spend $750-$1,000.
• Try to avoid credit cards to avoid the debt. Use cash or debit so you can be aware of how much you are spending. 
• Try to use as many apps, promo codes, and rewards as you can.      
• Finally, don’t forget to match the prices from multiple stores before you shop. Have a game plan and most likely dedicate a day to shopping.  

In conclusion, the holidays are a very stressful time of year, so spend your bonus wisely and spend much time with friends and family to ease the stressful parts, and enjoy the fun!