On the Money From the December 3, 2004 print edition December is a “magical month.” It’s filled with holiday events–, office parties, family gatherings, concerts, annual correspondence with friends, decorating, and festive reminiscence of years gone by. But for those of us focused on money, the most important event in the magical month of December is shopping. Buying presents, flying cross-country to visit relatives, having special dinners and parties — consumers spend more money in the three months before New Year’s than at any other time of the year. In fact, retailers often make about half of their annual profit during this time, according to the National Retail Merchants’ Association. Real median household income remained unchanged between 2002 and 2003 at $43,318, according to a report by the U.S. Census Bureau. Of that amount, $702 will be spent on celebration-related items. That’s 2 percent of total income. In a survey conducted by the National Retail Federation, those polled said they expect to spend the bulk of their $702 holiday budget...
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