Americans Expect to Spend $25.9 Billion on Valentine’s Day in 2023

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Love may not cost a thing, but Valentine’s Day sure is expensive. 

There are a lot of things dividing the U.S. public. Politics, religion, Marvel movies. Even holidays aren’t exempt from the staunch divide.

Take Valentine’s Day. Only about half — 52% — of consumers celebrate the day ostensibly devoted to love. (Perhaps because it’s realistically more devoted to the consumption of love-themed decor and expensive gifts.) Though, in fairness, of those not specifically celebrating, more than a quarter still intend to mark the occasion in some way.

Of course, half is still plenty from a personal finance point of view. That’s because consumers are still expected to spend nearly $26 billion (yes, billion, with a “B”) on their chocolates and sparkly bits, according to a study by the National Retail Federation.

$192.80 a pop adds up quickly

When you break down the numbers, it’s easy to see how it can add up to such a large number. Individually, consumers expect to spend an average of $192.80 each. The only holidays that top Valentine’s Day spending are Christmas and Mother’s Day.

So, where’s all the cash headed? Approximately 57% of participants plan to gift some sort of candy, giving small chocolate shops what’s likely their busiest time of the year. Somewhat surprisingly, greeting cards are the second most popular gift, proving that Hallmark is still holding its own in the middle of the digital revolution.

The expected flowers and jewelry are also in the top five gifts, with more than a third of people picking up a bouquet, and roughly a fifth of folks gifting the glam. Restaurants will get their fair share, however, as nearly a third of people plan on a romantic evening out.

How to stretch your V-day budget

For the millions of folks already on a tight budget this year, the idea of forking over nearly $200 on overpriced candy or flowers that die in a week may seem extreme. (Heck, that can seem extreme even if you’re not on a tight budget!)

If you’re looking to share your love without draining your savings account, try some of these tips:

Craft your own gift: While all the traditional gifts are nice enough, nothing truly shows you care like taking the time to make something yourself. This has the added benefit of usually being much less expensive, too.

Do it together: A box of chocolates is a nice gift, but it could be even better if you make it together. Consider taking a candy-making class as a couple. Or, if you’re feeling brave, buy all the supplies and spend the evening with a few helpful online tutorials (and a bottle of wine).

Think outside the restaurant: A sit-down dinner at a fancy restaurant is as classic as it gets — but that “market rate” meal is always going to be pricey, especially when you tack on the V-day premium. Instead, look for more affordable — but no less romantic — alternatives, such as packing a lunch and having a picnic.

Skip the card and write a letter: If you haven’t purchased a card in a while, you could get a bit of sticker shock. A fancy pop-up card can easily run you nearly $15, and even a basic Hallmark will set you back $3 to $5. Instead, invest that money in a nice stationary set and write your loved one a love letter. As a plus, you’ll likely have plenty of stationary left over for next year!

Make use of credit card rewards: Your trusty rewards cards can come in handy in a few ways. For one thing, you can use your existing rewards instead of dipping into your bank account. Cash in your cash back to cover your meal, or redeem some extra points for a romantic weekend away at a fancy hotel. And, of course, don’t forget to maximize your rewards on anything else you purchase, such as using a restaurant rewards card at dinner.

The commercials make it seem like only a grand evening — with an equally grand price tag — will adequately show your loved one how much you care. But remember: Commercials are designed to sell you things. You don’t need a $2,000 ring or even a $200 bouquet to express your affection. To paraphrase the song, real love doesn’t cost a thing.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Brittney Myers has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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