Retail survey pegs national Valentine’s Day 2025 spending estimate at $27.5 billion
Media Contact: Barbara Fornasiero; EAFocus Communications; barbara@eafocus.com; 248.260.8466
Wyandotte, Mich. —February 4, 2025 —A survey released by the National Retail Federation (NRF) estimated that spending for Valentine’s Day 2025 will be a record $27.5 billion. But what price can you put on love? Too much for some spenders, as consumer trends reflect credit card balances rising and auto loan defaults increasing. Still, there are some basics for keeping the ‘beloved’ holiday celebratory, according to Michigan Legacy Credit Union CEO Carma Peters.
“It’s a good practice to consider how you celebrated other recent Valentine’s Days. If you can’t recall exactly what you purchased or did – but remember spending too much money, that should be a good incentive to reconsider spending this year,” Peters said. “For many people, the best purchase decisions, whether they be for a product, a service or an experience, come from budget setting.”
NRF survey findings reveal that shoppers plan to spend an average of $188.81 on the holiday – up from $185.81 last year. Because that could be a weekly grocery budget for some families, Peters suggests looking at where other expenses can be cut in February.
“Are there miscellaneous monthly expenses such as fast food, expensive coffees or entertainment that can be cut to allow for the increased Valentine’s Day spending? This could be a good month to evaluate how quickly non-essential extras add up and eliminate the potential for saving, paying down credit card debt or even making the occasional special purchase,” Peters said.
Tips for keeping expenses reasonable this Valentine’s Day:
- Valentine’s Day celebrants – especially families – often have more than one valentine. Create a practical budget for gifts and divvy it up by individual recipient. Don’t go overboard on a gift for one person and throw your budget off by having too little left for others on your list.
- Getting engaged this Valentine’s Day? The best method for financing an engagement ring if cash is not an option is financing with your credit union or financial institution. Beware of credit cards with high interest rates; 0% interest is an excellent option only when all the payments can be made while that interest rate is guaranteed. Read the fine print so you know ALL of the terms.
- Still paying off credit card debt from Christmas? Pay cash for Valentine’s Day gifts and meals. This can be especially savvy when eating out at restaurants that charge an additional fee (typically 3%) to use a credit card.
- Know the cost of credit! Store credit cards may charge as much as 32% in interest on unpaid balances. Credit cards issued by a credit union cannot exceed 18% in interest per national credit union regulations. A Valentine’s gift purchased for $100 with a retailer’s credit card can actually cost as much as $392.88 if it’s paid over the full repayment length of the credit card instead of when the bill arrives.
- Never borrow money from your bank account to purchase gifts. And remember that payday loans and buy now pay later alternatives are budget-killers that can create long-term financial distress.
- Create memories, not debt.
“Most gifts last awhile, but memories last forever. Often the ones you love the most want your time and attention first. For families, that can be a great dinner at home and game night, crafting together, or baking together,” Peters said.
About Michigan Legacy Credit Union
Michigan Legacy Credit Union (MLCU) is a member-owned, not-for-profit financial cooperative serving members who live, work, worship, attend school, or own a business in the state of Michigan. Michigan Legacy Credit Union is committed to providing quality financial services at a competitive price, delivered professionally and efficiently while keeping member/owners and their needs first. For additional information on MLCU, visit: www.michiganlegacycu.org.
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