3 Holiday Expenses the Middle Class Can No Longer Afford
Written by
Cindy Lamothe
Edited by
Amber Barkley
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
There used to be a time when creating holiday magic didn’t send you to the poor house. Now, with rising costs, you’re lucky if you can stay within budget.
“Let me cut to the chase: The holidays have become a financial nightmare for the middle class,” said Stoy Hall, certified financial planner (CFP) and the CEO of Black Mammoth. “I see it in my work every day — families who want to create a magical season for their loved ones but are drowning in the rising costs of, well, everything.”
He added, “Airfare is outrageous, gifts feel like a mortgage payment, and even throwing a small holiday party can obliterate your budget. But here’s the good news — you don’t have to play along.”
Below are some of the holiday expenses the middle class can no longer afford.
The Cost of Traveling Has Increased Significantly
“These days, even a single flight outside of the state throws off a family’s entire budget, making it impossible for them to holiday,” said David Milo, financial advisor and owner of Independent Lending. “If this money was to be used for renting even a basic vehicle or booking a single hotel, then this kind of trip already exceeds the threshold comfortable for an average household to maintain.”
He noted that families from across the nation can’t afford renting vehicles or booking hotels and flights due to the increase in gas prices and airfares. “Remember the days when a casual visit to your relatives could have been done without bursting a family’s finances? Simple reality: These family visits may or may not happen anymore.”
Making Holiday Meals
“In the past, spending around $150 would get you and your family a wholesome meal. Now, even an elementary meat dish can cost over $150, not to mention the ridiculous increase in the cost of groceries and utilities,” said Milo. “It is safe to assume that many families would no longer be able to afford to make big tasty meals the family can gather and bond over.”
The Season for Gift Giving
According to Milo, gift giving, particularly for extended family and coworkers, has become rather costly. “What used to be a plain, simple act of giving and receiving of gifts is mostly a financial burden today.”
With the prices of goods and services climbing, he said families are finding it very difficult to maintain the custom of ensuring that everyone on the list receives a gift.
What Middle Class Families Are Doing
Milo said that many people are choosing to spend less because of rising prices. Instead, they’re spending time with each other in lieu of purchasing expensive gifts and making costly meals.
“With tight budgeting and concentration on necessities, something can be done to the holiday balance,” he added.
Rewrite the Holidays
“I’m not saying it’s easy to break old habits or say no to traditions you grew up with,” said Hall. “But I am saying it’s worth it. You don’t need to go broke trying to make the season special. The middle class isn’t losing the holidays — we’re redefining them.”
This year, he suggested skipping the stress, embracing what matters, and taking back the season. “Let’s make this holiday the one where we choose joy over debt, connection over chaos, and love over materialism. You’ve got this.”
More From GOBankingRates
