Your children will receive smaller gifts this year.The rest of the family will not receive any

(CNN Business) - The highest prices of gasoline and groceries affected Jen Kendra's finances, and had to make some difficult concessions this Christmas season.

Your children will receive smaller gifts.The rest of the family will not receive any.

Kendra, who lives with her husband and two young children in the suburbs of Chicago and who works part -time as a bank cashier, pays double to fill the gas tank every week every week.

"I have seen a rebound in food and gas prices," he said.When he passes through the gas station near his home, he is often shouting at the big posters that list the most recent prices.

Kendra describes his family as a low middle class.You have started using coupons more frequently to buy food and buy more frequently in discount stores like Aldi to get the lowest prices.Sometimes, that means driving longer distances to find cheaper food."Anyway where I can find a deal or bargain, I'm testing it".

The Kendra family is fighting to pay Christmas gifts.The highest prices of gasoline and groceries are taking its toll.

Federal stimulus checks have helped their family, but money was exhausted earlier this year.Its US $ 550 per month of the tax credit for children expanded has also been an impulse and they are used to pay the preschool of their youngest son and the invoices of food and gas credit cards.

Kendra and her husband saved to buy a Nintendo Switch for their children, seven and four years.500.

"Not being able to provide that Nintendo Switch was heartbreaking for me," he said.

Instead, he turned to the Facebook market for the first time to buy used toys, and also got Play-Doh and Hot Wheels for children.The couple will not exchange gifts this year or buy gifts for their parents and relatives.

"Things are very difficult at this time," he said.

Higher prices for televisions and sports products

They are hardly alone.The increase in prices squeezes the budgets of millions of Americans, which leads many families with financial difficulties to withdraw gifts.

Prices rose 6.8% in November compared to the previous year, the highest level in 39 years.The prices of the groceries have increased an annual 6.4% and the meat was 16% more expensive in November than a year ago, while fish and seafood prices increased by 8%.

Energy prices rose 33.3%, including a huge 58% increase in gasoline.

But not all buyers are affected equally by the highest prices.

Higher income consumers - which have more effective available for discretionary purchases - are better conditions to resist high inflation episodes than lower income buyers, who spend a higher percentage of their income on fuel and basic products.

This leaves them more vulnerable when food prices or gasoline raise, which reduces the amount of money they have left to buy gifts for parties, such as electronic devices, games or non -essential items.

Although salaries increase rapidly, they are still behind inflation.

"Inflation has been more painful for lower income households," Bank of America economists said in a research report last month.

The increase in basic products prices will have an impact on the spending of buyers with budget limitations on Christmas gifts, which are also more expensive than last year.

Clothing cost 5% more in November than a year ago, jewels rose 6.7%, televisions 7.9%, sports articles 8.4% and furniture 11.8%.

Christmas shopping disparity

Holiday expenses are expected to average US $ 1.463 per home, 5% more than in 2020, according to a Deloitte consumers survey published in October.

But the consultant predicts huge discrepancies in spending among income groups, driven in part by inflation.

While consumers with an annual income greater than US $ 100.000 will increase their vacation expenses by 15% compared to last year, vacation expenses will increase only 3% among buyers who earn between US $ 50.000 and US $ 99.000 a year.

And for consumers who earn less than US $ 50.000, the expense will be reduced by 22% during the holiday period this year.

"There is a history of two holiday seasons, in which higher -income households plan to spend five times more than lower income households," said Deloitte."The majority of this season's profits will be promoted by higher income buyers".

Many low -income buyers will be out of the Christmas season completely, according to Deloitte.

Some retail chains have recently said that lower income customers have felt the impact of inflation and reduced discretionary spending.

"Inflation in food, fuels, services and other needs creates financial pressure at our lower income customer base," said John Swygert, CEO of Ollie's Bargain Outlet, in a call with analysts this month."We are [seeing] that these customers buy less frequently because of the mere fact that they have less income available".

Walmart stressed that actively tries to keep gas prices low to attract customers worried about how much they are paying in the supplier, especially as the benefits of federal stimulus decrease.

"Gasoline prices are a concern...They have risen compared to a year ago, "said Walmart CEO, Doug McMillon, in a call with analysts last month."Customers had money [then].And at some point, that will come to an end ".

For Erin Leonards, who lives in southwest Louisiana, "gasoline prices are what kills me".Now spend US $ 50 to fill your tank these days. "Solía ​​costar US$ 30 como máximo", agregó.

The increase in gasoline prices for Leonards, who has three young children, two, four and six years old.She is at the beauty school and works part time at a fried chicken restaurant, winning less than US $ 50.000 a year.

Leonards said he bought 18 to 20 gifts last Christmas for each of his children and also bought gifts for his three godchildren, as well as for his nephews.

This Christmas, she bought only four gifts for each of her three children, telling them to choose "something they want, something they need, something they wear and something they read".

Leonards said her children understood when she explained that "Santa wanted to try something new this year" with gifts.But he still felt guilty of not being able to give them as much as last year.

The increase in inflation in the essentials, combined with a setback in the federal stimulus, will also make it difficult for consumers with little budget to buy discretionary goods in 2022, they said retail analysts from Goldman Sachs in a research report this week.

This can affect both retailers who adapt to low -income buyers and the American economy in general.

Next year, "the consumer approach will probably change towards [find] value in key essential elements while discretionary spending will decrease," analysts said.It is likely that lower income buyers "remain under significant pressure".

Julia Horowitz, by CNN Business, contributed to this article.