What insights can gifts, tips and teeth give us?
While traditional indicators of the state of the economy may be things such as the monthly Consumer Price Index, interest rates or gas prices, a financial services company has another suggestion: looking at how much people are spending on gifts, leave as tips and even how much the Tooth Fairy is leaving under a pillow.
And according to the new study of the “going rate” of several items by Empower, Americans say inflation and tariffs are visible in gift prices and consumers’ concern is showing up as “gift fatigue” and “no gift” policies. Tipping habits and even allowances are also feeling the brunt of rising prices.
“The going rate tracks the cost of giving,” Rebecca Rickert, Empower head of consumer insights, told USA TODAY. “I think what we commonly frame as etiquette is really a lot more about economics… Generosity can be a surprisingly powerful economic indicator.”
Here’s some key findings from Empower’s “Going Rate” study:
The Diaz family of Ridgewood, New Jersey, have a lot of people on their Christmas gift list.
Julia Diaz, 59, buys for about 20 people, including her family of five, extended family members and close friends.
Her daughter, Oriana Diaz, 32, has about 30 people on her gift list, including her family, her boyfriend’s family and work mentors and friends.
They are both cutting back this year on holiday gifts as prices have increased. Julia plans to spend half of her normal $50 per person.
“Everything is expensive now compared to last year,” she said.
Oriana plans to buy smaller hand-made gifts.
She considered asking her family and extended family to do “no gifts” this year, but the act of giving each other gifts is so important to the family.
“I’ve thought about having a conversation where we scale it back,” Oriana said. Last year, she bought handmade or artisan gifts. She gave several of her work colleagues a fresh loaf of bread from her mother’s business, Cecilia Bread, paired with special olive oil dip. The loaf was $15 and the total gift was about $30.
Julia Diaz is not anticipating that her holiday bread-baking business will be impacted because her price-point has stayed the same and it has been a popular gift item. She has not raised prices, even though her ingredient costs have gone up.
The “going rate” gives people an idea of what other Americans are spending on each other, said Rickert.
“People don’t talk about ‘well, how much did you give?'” she said.
Offering the “going rate” “gives people a peek into everybody else’s wallets because these are hard things to talk about or get answers on,” Rickert said.
Betty Lin-Fisher is a consumer reporter for USA TODAY. Reach her at blinfisher@USATODAY.com or follow her on X, Facebook or Instagram @blinfisher and @blinfisher.bsky.social on Bluesky. Sign up for our free The Daily Money newsletter, which breaks down complex consumer and financial news. Subscribe here.