Valentine's Day spending: Like a Facebook relationship status—it's complicated
Surveys show conflicting predictions on Valentine's Day spending habits
The National Retail Federation reported that Valentine’s Day spending is expected to increase by 8.5 percent over last year, but a survey by Visa Inc. projects that consumers will spend 3 percent less this year.
“As one of the biggest gift-giving holidays of the year, it’s encouraging that consumers are still exhibiting the desire to spend on discretionary gift items, a strong indication our economy continues to move in the right direction,” Matthew Shay, National Retail Federation president and CEO, said.
But Visa’s senior director of financial education said in a prepared statement that overspending on Valentine’s Day to impress could have the opposite effect. It’s important to stick to a budget, he also said.
The average person celebrating the holiday will spend $126.03, according to the National Retail Federation’s 2012 Valentine’s Day survey.
That is an 8.5 percent increase over last year’s $116.21. It’s also the highest in the survey’s 10-year history.
Leaders with the federation expect spending to reach $17.6 billion.
In preparation for anticipated high-foot traffic, Shay said that retailers have restocked inventories and will be offering an array of deals and specials.
In contrast to the National Retail Federation’s predictions, Visa’s survey predicts that Americans will spend an average of $117 on Valentine’s Day.
That number is a 3 percent decrease from $121 in 2011, according to the survey.
“The drop can largely be explained by the plummeting enthusiasm among women for spending on Valentine's Day, falling from $101 in 2011 to a meager $87 in 2012—a 14 percent drop,” according to Visa’s survey.
Both surveys did find that men plan to spend more than women.
The Visa survey also found regional disparities in spending.
Southerners are expected to spend the least, at an average of $97 a person.
People in the lowest income bracket—who earn less than $20,000 per year—plan to spend more than consumers earning from $20,000 to $50,000 on Valentine's Day, according to Visa's survey.
