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Affluent Men Spend Twice As Much on Holiday Gifts for Their Spouse as Women Do

Men reported spending much more in 2004 than women on December holiday (Christmas and Hanukah) gifts in a recent survey of the wealthiest 10% of U.S. households. The differences in 2005 gift expenditures will be about the same or a little greater, as men plan to reduce their spending less than women in 2005.

Men reported spending an average of $1,212 on holiday gifts for their spouse, more than double the average $568 spent by women on their spouse. Spending by men (and women) for holiday gifts was $948 ($604) for children under 18, $1,896 ($1,044) for children 18 and over, $734 ($549) for other relatives, and $523 ($395) for friends.

Average gift expenditures for a spouse were highest among those 60 and over ($1,575 versus $740 for those under 60) and those with a net worth of $6 million or more ($2,617 versus $744 for those with a net worth of $1 to $6 million). Those with an income above $200,000 averaged $1,188 versus $601 for those under $200,000 in income.

Average gift expenditures for children under 18 were highest among those 60 and over ($3,835 versus $760 for those under 50), those with a net worth of over $6 million ($1,395 versus $759 for those with a net worth of $1 to $6 million), and those with the higher income ($897 versus $607 for those with incomes above and below $200,000 respectively).

Average gift expenditures for children 18 and over were highest among those over 60 ($2,226 versus $1,191 for those 50 to 59), those with a net worth over $6 million ($4,097 versus $1,219 for those with a net worth of $1 to $6 million), and those with the higher income ($2,075 versus $1,092 for those with incomes above and below $200,000 respectively).

Average expenditures for other relatives and for friends showed a pattern similar to that of children, but the differences were somewhat smaller.

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The average expenditure of spenders, weighted by the percent buying for that type of person, totaled $2,807 for the people represented by this survey. That is about five times the average of $565 for all adults, based on a recent survey for The National Retail Federation.

These results were obtained from the recently completed Fall 2005 "Affluent Market Tracking Study #8" by The American Affluence Research Center. A continuing series of twice-yearly surveys, these studies track the 12- month economic outlook and spending plans of the wealthiest 10% of Americans, the 11 million households representing about half of all consumer income and spending and a third of the total US economy. These are the consumers who have helped the more upscale retailers to out perform others in recent years.

The survey participants were asked to identify the people to whom they would give holiday gifts this year. They were then asked how much they had spent on those people in 2004 and by how much their expenditure would change in 2005.

Highlights of the national survey of 448 men and women in the wealthiest 10% of U.S. households can be found on the AARC website, www.affluenceresearch.org. The survey participants have an average income of $308,000 and an average net worth of $2.7 million. The survey has a 5% margin of error at the 95% confidence level.



About the author:

Ron Kurtz is a principal of The American Affluence Research Center and The Management Resource Group. Both companies provide marketing research and strategic planning services to prominent clients in the travel and hospitality industries, especially those targeting the affluent market.

Ron earned his MBA at Harvard Business School.

For further information: http://www.affluenceresearch.org and http://www.mrgconsultants.com