Economic Impact on Holiday Spending
Many families in the United States anticipate increased holiday expenses this year, influencing resources allocated for traditional celebrations. This situation has led to adjustments in spending on food and gifts.
Individual Accounts of Financial Strain
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Steve Posey, Medford, Mass.: Posey, a case manager at a veterans' organization, and his wife, a child care worker, have taken on a second job with Instacart to manage rising costs. Despite their combined income, they report difficulties covering expenses. For Thanksgiving, they obtained a turkey and canned goods from a food pantry, supplementing with other items. Posey noted that current circumstances diminished the traditional joy of the season, describing his focus as maintaining financial stability. He also observed increased financial challenges among the veterans he assists. Many experienced disruptions to their federal SNAP food assistance following a government shutdown and have not yet recovered the benefits. Posey reported an increase in frustration, anger, violence (particularly domestic violence), and substance use among this population, attributing these trends to overwhelming circumstances.
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Rosetta Savannah, Queens, New York City: Savannah experienced disruptions to her SNAP payments during the government shutdown and has only received half of her expected benefits for the current month, compounded by additional medical bills. Her family's Thanksgiving meal was reduced in scope, focusing on more economical options like chicken instead of traditional baked goods. She relies on local food pantries for items such as a small ham and sides, noting the necessity of early arrival to secure provisions. This year, Savannah's three children will receive one small present each, a reduction from previous years.
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Bonnie Green, Bethlehem, Penn.: Green, a 60-year-old professional and homeowner, has also adjusted her holiday spending. She had planned for extensive holiday shopping and elaborate feasts, including new outfits for her children and her first granddaughter's initial Christmas. Her job with the National Science Foundation was eliminated earlier this year by the Department of Government Efficiency, established by executive order during the Trump administration. While she retains her position as a professor at East Stroudsburg University, her total income has been reduced by half. This income reduction has led to decreased gift purchases, diminished decorations, and a more modest holiday menu, with substitutions like chicken soup for seafood chowder and other economical dishes. Her sister will not attend Christmas celebrations, citing higher airfare and the need to work an additional shift.
Broader Implications and Support Efforts
Green expressed a sense of relative fortune compared to lower-income individuals, specifically students at her institution. The campus food pantry at East Stroudsburg University has observed nearly double its typical volume. Students have reported financial strain to the extent that some may discontinue their studies prior to graduation, potentially impacting their future earning capacity. Green, whose career has focused on improving educational outcomes for disadvantaged students, established a scholarship fund this fall to assist students close to graduation who face financial hardship. The fund has secured enough resources to support one student through graduation, with dozens more identified as eligible. Despite reducing her personal holiday spending, Green has increased her contributions to the scholarship foundation.