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Unveiling Winter Spending Habits: Do Americans Spend More When the Temperature Drops?


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December 24, 2023

As the winter season blankets the nation in snow and chilly winds, an intriguing question arises: do Americans tend to spend more during the winter months? Beyond the holiday festivities, there are various factors that influence consumer spending patterns during this time of the year.

The Cold Weather Effect

The onset of winter brings about a myriad of changes in consumer behavior. One noticeable trend is the increased spending. Winter is the second biggest spending season after summer. Why do we spend more during these winter months? When the weather is uncomfortably cold, we make more irrational decisions. This is why many malls across America keep the temperatures around 59 degrees so that you will buy more. Also with chilly winter temperatures keep many individuals inside and turning to shopping online due to boredom.

Additionally, the holiday season, which coincides with winter, plays a significant role in stimulating consumer spending. Gift-giving traditions, festive decorations, and the allure of holiday sales promotions contribute to an overall increase in expenditure. While the holidays are a time of joy and celebration, they also translate into higher consumer spending as individuals purchase gifts, plan vacations, and host festive gatherings.

However, it's essential to recognize that not all winter spending is discretionary. Home maintenance and utility costs often rise during the colder months. Individuals may invest in insulation, heating systems, and other measures to combat the harsh weather conditions, leading to an inevitable increase in household expenditures.

How to Save Money on Heating Bills This Winter?
  • Lowering your thermostat at night or while you're away from the house could help save up to 10% on your heating bill.
  • Opening curtains to get sun in during the day.
  • Make sure that your attic, walls, and crawl spaces have adequate insulations.
  • Set your water heater to 120 degrees. This can save up to 11% in water heating costs.
Tax Credits and Winter Spending

As we navigate the winter months, it's worth considering the potential impact of tax credits on spending habits. The federal government, recognizing the financial challenges posed by winter-related expenses, offers certain tax incentives to help ease the burden on taxpayers.

One notable credit is the Residential Energy Efficiency Tax Credit, which encourages homeowners to make energy-efficient improvements to their properties. This credit covers expenses related to the installation of energy-efficient windows, doors, insulation, and qualifying heating and cooling systems. By taking advantage of this tax credit, individuals can not only reduce their energy bills but also contribute to a more sustainable and environmentally friendly living space. The potential savings could be around $1,200 a year.

The EV tax credit is also available to take advantage. With the rise of many choosing an electric vehicle, many are deciding to purchase them because of the tax credits they bring. If you purchase a new EV, you can get a $7,500 tax credit. If you purchase a used EV, you can receive a $4,000 tax credit.

It's crucial for individuals to stay informed about these tax credits and deductions, as they can significantly impact winter spending decisions. By strategically leveraging available tax incentives, you can make more informed choices when it comes to allocating your resources during the winter months.

In conclusion, the dynamics of winter spending in the United States are influenced by a combination of factors, including cold weather effects and the holiday season. Understanding the available tax credits is paramount for individuals looking to optimize their winter spending. By taking advantage of these incentives, you can not only mitigate the financial challenges associated with the season but also make more sustainable choices that align with your long-term financial goals.

If you would like to receive more information on making smart money moves for your future, be sure to contact us today!


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Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice.

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The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation.

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Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice. https://Bit.ly/KF-Disclosures

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