Here Are Some Holiday Purchases the Rich Never Spend Money On — Should You?
KEY TAKEAWAYS:
The rich commonly exclude 3 categories of items from their gift-giving lists
Many wealthy people avoid certain splurges and are more intentional with their ideas
Affluent folks also tend to plan better for holiday spending
With the summer in the rearview mirror and the holiday season fast approaching (and expanding to encompass more days, weeks, and even months with each passing year), the question of the huge spend attached to the holidays comes to the fore.
But another question appears alongside it — how do the rich spend differently from others during the lead-up to December, and what are some of the things they never buy (or buy into) that others often might? MoneyLion asked some experts for their takes, combined with some other insights below.
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The Rich Avoid Gifts for Reasons We Don't
According to private concierge Brian Daniel of The Celebrity PA Network, the wealthy exclude three categories of items from their gift-giving lists: food items, gift cards, and off-the-rack clothing.
On food, Daniel said that spoilage concerns or even the fear of someone tampering with the item is present among the ultra-rich set, with the exception in this category being the much-appreciated gift of rare or exotic vintages of wine.
Gift cards, which Daniel described as a “brainless” or thoughtless gift, are a no-brainer to avoid. Off-the-rack clothing brings with it the problem of often being ill-fitting or the wrong color for the recipient.
Wealthy People May Not Splurge on These Holiday Costs
Julien Brault, founder of MooseMoney, said that many wealthy people were much more intentional about their purchasing behavior than their less affluent counterparts, and that this might translate to holiday consumer habits as well. He gave four different examples where convenience costs might deter the rich, despite common belief.
A new artificial Christmas tree every year or two
“A quality artificial tree can last for many holiday seasons, so replacing it just because a newer pre-lit, flocked or more realistic version is trending is an unnecessary expense,” Brault said, noting that people who are disciplined with their money rarely wasted it on frivolity for its own sake.
Pre-made holiday gift baskets
Here, you’re paying for convenience, according to Brault. The wealthy often prefer to create their own personal assortment of gifts to offer friends, family, and valued associates.
Professional services
Gift-wrapping services and holiday light installation: two examples of money that could be better spent elsewhere, with wealthier persons instead opting for DIY solutions that are repeatable with less-extensive effort.
The Rich Plan Ahead Better for the Holidays
Robert Pfleghardt, founder and CEO of VoraPrep, said that among his clients, the wealthier holiday shoppers distinctly avoid frantic purchasing decisions or convenience buys.
"[They] never paid $89 for same-day delivery on something they forgot, never dropped $300 on a ‘gourmet’ meal kit that's mostly markup and cardboard packaging. They planned in October or delegated it to someone competent in early November. The frantic consumer rush that retailers engineer every December? They opted out entirely before Thanksgiving,” he said.
Extended warranties and buy now, pay later (BNPL) offers were also on the chopping block with wealthier shoppers in the lead-up to the holidays, per Cameron Botes of BizBud.
“Wealthy people avoid BNPL and instead pay for items up-front either in cash or through rewards cards,” he said, preferring to get clear of any payment entanglements while also reaping free points or loyalty rewards.
His reasoning? Extended warranties cost too much in comparison to the purchase price of an item — between 15% to 20% of MSRP — and are rarely used.
“Wealthy individuals do not fall for this moneymaking scheme,” he said.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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