BMO Private Bank released the results of a study on holiday giving and gifting trends among high-net-worth Arizonans (those with investible assets of $1 million or more). The study is part of an ongoing series examining financial trends among the state’s affluent.
According to the study:
• High-net-worth Arizonans plan to donate an average of $6,259 to charitable causes this year, 28 percent of which will occur during the holiday. Nationally, affluent Americans plan to donate $12,394 this year and 29 percent during the holidays.
• The majority of affluent Arizonans plan to donate the same amount as last year, while 12 percent plan to donate more.
• Among high-net-worth Arizonans donating to charity, most plan to give clothing (73 percent), cash (66 percent) and food (61 percent) this holiday season, followed by household goods (44 percent), securities (7 percent) and credit card points (2 percent).
• Thirty-two percent plan to volunteer and 22 percent plan to attend an event where proceeds are donated to a charitable cause.
Holiday Spending to Surpass $4,000 Among Affluent Arizonians
The study also found that high-net-worth individuals in Arizona are planning to spend, on average, $4,254 this holiday season on the following:
• Trips/Travel $2,599
• Gifts $1,196
• Entertainment $329
Twenty-two percent of high-net-worth Arizonans plan to spend more during the holidays than they did prior to the 2008 recession, while 68 percent plan to spend the same. Additionally, more than half (56 percent) are expecting to buy gifts for five or more people, with an average of $233 spent on each gift.
“It’s encouraging to see Arizonans spending more during the holiday season,” said Ashely Ober, Managing Director, BMO Private Bank, Western U.S. “It’s yet another sign that the economy is improving and consumers are funneling more money into key industries, such as retail, hospitality and tourism.”
Key National Results:
• High-net-worth Americans will give an average of $12,394 to charities this year. Of this amount, an average of $3,631 will be given over the holiday season, with 28 percent donating more than in 2013, five percent giving less and the rest donating about the same amount.
• Affluent Americans plan to spend an average of $10,525 on gifts, travel and entertainment during the holidays; $4,459 will go towards gifts and $3,385 will be spent on travel.
• Forty-three percent indicated they intend to spend more than they did in the years prior to the 2008 recession, and just 9 percent indicate they plan to spend less.
• High-net-worth Americans plan to buy gifts for an average of 16 people, with 42 percent reporting plans to buy gifts for ten or more people and plan to spend at least $100 per gift.