It's Valentine's Day, the perfect excuse to splurge on someone special with cards, chocolates, and flowers. However, new research (opens in new tab) from Compare Cards has found that it's important not to let your generosity get the better of you, as 31% of Americans would be “turned off” if their partner spent too much on Valentine’s Day.
According to the survey, the average respondent said that spending over $200 on Valentine's Day gestures is excessive. The average expected spend falls below this, at $142. However, this differs hugely by generation. Millennials, aged between 24 and 39, anticipated spending $113 on the big day, whereas those between the ages of 40 and 55 expect to splash out on an average $293. Baby boomers aged 56 and above have the smallest spend of just $55.
Gender also plays a role, with men on average splashing out an extravagant $248.90 on their partner, compared to the average woman's $57. With this statistic in mind, it's no wonder that one in ten Americans has gone into debt to impress their partner. It's nice to to the extra mile for Valentine's Day, but nobody should have to turn to the best debt settlement companies (opens in new tab) to woo their date.
The cost of love
Valentine's Day is a huge commercial holiday, with the National Retail Federation predicting Valentine’s Day spending nationwide to reach $27.4 billion this year, an increase of 32% from last year. This may be due to the success of online dating, with 12% of Americans (opens in new tab) using the best online dating sites (opens in new tab) to successfully find love. Although it's Gen X-ers who spend the most on spoiling their partners, it's millennials who take the biggest financial hit when trying to impress their significant other. As nearly 1 in 3 of those aged between 24 and 39 admit to going into debt for a relationship, it's no wonder that people are losing sleep over their money troubles. However, it may pay off to be more financially savvy if you're looking to find love, as 23% of millennials have actually broken off a relationship because of debt.
We recently reported that 49% of borrowers have a higher student loan balance after 5 years of repayment, as graduates struggle to pay off the compound interest on their loan, let alone make a dent it in. This might be one of the reasons why millennials are hit hardest by Valentine's Day spending. If debt is getting a bit overwhelming, the best debt consolidation companies (opens in new tab) can help straighten things out for you.