Thanksgiving costs rise with inflation, straining budgets for hosts, while US markets take a holiday break. A costly feast meets a trading freeze.

Hosting Thanksgiving in 2024 feels like feeding a royal court on a commoner’s salary. Costs are soaring as Americans take time off, the markets close and everyone Googles when the Macy’s parade kicks off.

Thanksgiving: Rising Costs and Time for Credit

According to a report by LendingTree, the average cost of a classic Thanksgiving meal is up 12% this year, landing at an eye-watering $72.50 for a party of 10. That’s before you factor in all the extras—like a decent wine pairing or extra gravy for Uncle Bob. Inflation isn’t just hitting the pumpkin pie; it’s squeezing wallets across every aisle of the grocery store.

Rising prices have turned grocery shopping into a strategic battlefield. A turkey now costs around $30 (which isn’t too bad), but side dishes like sweet potatoes and green beans are up 15% from last year. Even canned cranberry sauce isn’t spared, costing around 20% more than it did in 2023. For hosts trying to maintain tradition, cutting corners is difficult when every item in the Thanksgiving spread feels like a luxury.

The impact doesn’t stop at food. The LendingTree Thanksgiving Cost Report reveals that 40% of people plan to use credit cards to cover holiday expenses. Among them, 11% intend to rely entirely on credit, with no plans to pay off balances immediately. For these households, Thanksgiving leftovers come with a side of mounting interest rates.

Even those who aren’t hosting are feeling the pinch. Nearly half of survey respondents expressed concerns about affording Thanksgiving at all this year. Some are skipping the big meal entirely, while others are downsizing their guest lists or opting for budget-friendly alternatives, like rotisserie chicken instead of turkey.

Travel Troubles: The Other Holiday Expense

Hosting’s expensive, but being the guest isn’t cheap either. Travel costs have soared, with airfare and gas prices up significantly since last year. LendingTree notes that nearly one in three Americans will spend over $200 on Thanksgiving travel, with the national average hovering around $180—15% higher than pre-pandemic levels.

For those flying to their Thanksgiving dinners, ticket prices have risen 10%, according to industry reports. Meanwhile, road trips aren’t much better. Gas prices, while slightly lower than their summer peak, remain elevated compared to previous years. The cost of filling up for a round trip can easily rival that of an extra side dish at dinner.

And then there are those “hidden” travel expenses—like parking at the airport or buying snacks for the road. Add it all up, and even the simplest Thanksgiving visit can turn into a budgetary headache.

The Macy’s Parade: A Priceless Tradition

For many, Thanksgiving isn’t complete without tuning in to the Macy’s Parade, the annual spectacle that signals the official start of the holiday season. With inflation tightening budgets, this free televised event has become an even more cherished tradition. Giant balloons, marching bands, and Broadway performances offer a rare escape from financial stress, delivering entertainment that doesn’t cost a dime.

But even the parade has faced its challenges in today’s economic climate. Behind the scenes, Macy’s has grappled with rising costs for balloon materials, parade floats, and staffing. Still, the retail giant remains committed to keeping the magic of the Macy's Parade alive, providing families with a joyful diversion before they dive into Thanksgiving dinner.

Feast Free or Feast Smart?

Interestingly, the survey unearthed some creative ways in which Americans are adapting to rising Thanksgiving costs. About 14% of hosts plan to ask guests to chip in financially, whether by bringing a dish or contributing cash. While this might seem unconventional, it’s becoming a necessity in the age of inflated grocery receipts.

Another 20% of people are planning smaller gatherings, and 8% are skipping the traditional feast altogether. For others, it’s all about finding deals: 26% of Americans said they’re hunting for grocery discounts or using coupons to shave dollars off their holiday spend.

Last-minute shoppers are turning to big retailers like Walmart for holiday deals. Checking Walmart Thanksgiving hours has become part of the pre-dinner ritual for many families trying to grab discounted turkeys or forgotten ingredients. While Walmart locations are closed today, many stores were open well beyond their normal hours in the run-up to the big event.

On the opposite end of the spectrum, some savvy Millennials and Gen Zers have cracked the ultimate Thanksgiving hack: attending multiple dinners without hosting any. This freeloading finesse means they avoid costs altogether, enjoying turkey with all the trimmings without spending a dime. Tupperware sales may see a spike as leftovers find their way into younger hands.

The Boomer Burden: Keeping Traditions Alive

Generational dynamics play a role in who feels the financial squeeze. Boomers, often the family matriarchs and patriarchs, are still the ones hosting most Thanksgiving meals. According to LendingTree, they’re the least likely to ask for financial help, despite being the most affected by rising food and utility costs. This generation is committed to keeping the spirit of Thanksgiving alive, even if it means absorbing the economic pinch.

Meanwhile, Gen Xers and Millennials are more likely to split costs with family and friends or adapt their celebrations to suit their budgets. Whether this means potluck-style gatherings or focusing on cheaper, non-traditional dishes, these generations are finding ways to stay festive without breaking the bank.

Markets Take a Turkey Day Timeout

While Americans grapple with rising costs, Wall Street is in full-on hibernation mode. US markets are closed for Thanksgiving, giving traders a rare chance to slow down and enjoy their own holiday indulgences. For those who can’t resist checking the numbers, European markets remain open, albeit with lower activity as global markets adjust to the US holiday.

Of course, Black Friday is in full swing, and with it comes a flurry of consumer spending data and market reactions. Retailers are banking on robust sales to offset a challenging economic year, but rising credit card debt and cautious consumer sentiment could temper the frenzy.

Thanksgiving 2024 is shaping up to be a challenging holiday for Americans. Inflation has driven up the cost of everything from turkeys to travel, leaving many to rely on credit cards or creative solutions to stay festive. While Wall Street takes a well-deserved holiday snooze, the rest of the country wrestles with financial realities that don’t take a day off.

So, whether you’re a host, a guest, or a forex trader enjoying the brief market pause, one thing’s clear: this Thanksgiving, the only thing stuffed more than the turkey might be your wallet.

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