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I was in a large discount retailer yesterday with my grandson, picking up some school supplies for his return to school after the summer break. Bearing in mind it’s late August, around 20% of the store was roped off while staff were busy unboxing and displaying Christmas merchandise. Unbelievable!
I overheard a few people asking staff when the display would be open for business, and you could sense a general excitement within the store about this new buying opportunity. I think the tills will be busy when it is.
As is my habit, this got me thinking. While most of us use these types of stores, they really target individuals with lower disposable incomes and can be a lifeline for families on a tight budget. This is the very demographic that research constantly shows is failing to save enough into retirement accounts; an often-cited figure is that around 35% have no savings at all.
The same consumer who relies on a store to stretch their budget for essentials is being enticed by highly effective marketing to spend on non-essential, holiday-themed items months in advance. The psychological triggers that make us excited to buy tinsel in August are often at odds with the discipline required for long-term financial planning.
The desire for immediate gratification—the thrill of a new purchase—can overshadow the need for delayed rewards, such as saving for a secure retirement. While a single holiday purchase may not seem significant, the cumulative effect of a culture that encourages constant spending can make it even harder for vulnerable populations to break the cycle of living paycheck to paycheck.
It may be easy for me, from a position of financial security, to have these thoughts, and I might come across as judgmental. But that’s not how I feel at all. I look at this from a place of true concern for the unpreparedness many people face as they move toward retirement.
The best early Christmas gift for a lot of people wouldn’t be more baubles and shiny plastic novelty presents. Instead, it would be the gift of opening a 401(k) and sending their future self a thoughtful and worthwhile treasure to be enjoyed for many years to come.
Happy early holidays, and bah humbug to you all on this sunny August morning.
Everything we see, everything we hear and everything we read every single day is purely designed to separate us from our money, and put it in their pockets. A lesson I’m trying to teach my younger son.
Perhaps people can buy the items in August at a greater discount than in November? Perhaps it won’t be available in November? Maybe? Maybe not. But if a Christmas purchase brings joy to a person in August, have at it. I wouldn’t presume to question the wisdom of a person making such a purchase. I have no idea of their financial standing.
Besides, buying a Christmas item in August and having a 401(k) at the same time are not mutually exclusive. You may be selling short these ‘vulnerable populations ‘ – however you may be categorizing them – regarding their ability to manage their money.
A bit tangential, but immediately after Christmas the shops here in Australia start selling Easter eggs and hot cross buns. Every year it brings a bout of predictable outrage …. “Easter eggs! We’ve only just got Christmas done!”
In the US there’s barely a month between Thanksgiving and Christmas. Wish we could get Thanksgiving moved earlier. Travel would be better in the northern states, and who holds a harvest festival at the end of November anyway?