A new study has revealed which states spend the most on nonessential purchases during the Christmas season, with Maine ranking at the top. Florida came in fifth place, where residents spend an average of 47.78% of their yearly salary on discretionary purchases. This amounts to a staggering $30,964 per Floridian spent solely on nonessentials.
The verified coupon site Coupons4Real gathered data from the Bureau of Economic Analysis and the Federal Reserve Economic Data to calculate each state’s spending in relation to their average annual income. They analyzed the findings to rank states based on the highest percentage of income spent on nonessential purchases, which include all Christmas-related expenses.
Maine leads the ranking, with residents spending an impressive 49.38% of their income on personal nonessentials like Christmas gifts and decorations. This equates to an average of $29,840 spent annually on unnecessary personal purchases.
In second place is Michigan, where residents spend an average of 48.61% of their yearly salary on unneeded personal items. Each person in Michigan spends approximately $27,726 annually on nonessentials.
Arizona took third place, with residents spending 48.01% of their average annual income on personal nonessential purchases, averaging $28,033 each year.
Utah followed in fourth place, with residents spending 47.97% of their annual income on unnecessary purchases, which translates to an average of $28,520 per person annually.
Hawaii ranked sixth, with the average individual spending 47.36% of their income on nonessential purchases, amounting to approximately $29,274 each year.
Pennsylvania came in seventh place, with 47.35% of the average annual salary spent on nonessentials, resulting in each resident spending about $30,546 a year on unnecessary items.
Illinois finished in eighth place, also spending 47.35% of the average salary on unneeded purchases. Here, each person spends an average of $32,034 annually on such items.
Ninth place went to Alaska, where residents spend 47.18% of their average yearly income on nonessential personal purchases, averaging $32,395 each year.
Finally, New Hampshire took the tenth spot, with residents spending an average of 47.06% of their salaries on nonessential purchases, ranging from vacations to electronics. This amounts to $34,691 spent annually per person.
Panayotis Nikolaidis, the CEO and Founder of Coupons4Real, commented on the findings:
“Americans consistently demonstrate their enthusiasm for the holiday season by dedicating a significant portion of their budgets to non-essential spending,” Nikolaidis said. “This study reveals how different states prioritize their festive budgets. From lavish gifts to festive decor and indulgent holiday experiences, Christmas remains a central driver of this discretionary spending. This trend highlights not only the cultural importance of the holidays but also the broader impact of consumer behavior on the economy during this time of year.”
Methodology
The states with the highest nonessential personal expenditure compared to their earnings were calculated and ranked.
Annual spending per capita and annual personal income per capita per state was taken from 2022 data from the Bureau of Economic Analysis and the Federal Reserve Economic Data respectively.
The percentage of an average person’s personal income spent on nonessentials in each state was calculated and ranked from highest to lowest.
