Christmas Trees Will Hurt Americans' Wallets This Year

The cost of your Christmas tree is about to hurt your wallet this year, a new release from the American Christmas Tree Association suggests.

The average price of a Christmas tree surged 10 percent from last year, with shoppers likely to shell out between $80 and $100 for their holiday centerpiece this year.

Even if you opt for an artificial Christmas tree, you'll likely still see the impact on your wallet, with estimated prices between $85 and $1,000. The exact cost will vary based on the producer, retailer, size and shape of the tree, however.

The American Christmas Tree Association found that 78 percent of consumers are concerned about inflation this year. However, that's not going to keep Americans from enjoying the holiday—94 percent of those surveyed said they will still be getting at least one Christmas tree in their homes this year, with 77 percent planning to display an artificial tree.

The reason for the hike in prices comes down to Christmas tree suppliers' own cost increases. Nearly all growers surveyed by the Real Christmas Tree Board said their input costs were climbing this year compared to last year.

"We always recommend that consumers shop early to get ahead of the holiday rush and find the décor, type, and style of Christmas tree that best fits their needs," Jami Warner, ACTA Executive Director, said in a statement. "This year, we're seeing many consumers – especially those concerned about inflation – purchasing their décor well before the typical shopping seasons of November and December."

Heavy Holiday Spending Ahead

The hiking tree prices are happening as Americans brace themselves for the financial hit of the holiday season.

In a survey from the Bank of Montreal, 74 percent of Americans said inflation will cause them to buy fewer holiday gifts this year. Almost two in five Americans indicated they would also be buying less expensive gifts, with 26 percent cutting down on their holiday gift lists as well.

And more than half, 55 percent said they would be taking on debt to cover their holiday shopping.

"Americans get swept away by the festive spirit, the twinkling lights and the promise of joyous celebrations, and unfortunately, they fail to exercise restraint and resist the temptation to overspend," Kim Scouller, a certified financial educator and author of How Money Works for Women, told Newsweek.

This overspending can lead to long-lasting effects on personal finances, Scouller said, noting shoppers should be cautious going into December.

"Many people succumb to the pressure of buying expensive gifts or hosting elaborate gatherings, only to find themselves buried under a mountain of debt come January," Scouller said. "When you can't pay off that credit card statement, the interest charges will set you back even more, lasting months and even years in some cases. The stress of debt can cast a shadow over the joyous memories."

Scouller recommended consumers set specific expectations for themselves and others—scaling back on expensive gifts and food might be necessary.

"I genuinely hope people know better by now, but sadly, my guess is it's going to be much of the same," Scouller said. "Until consumers truly learn how money works, they will continue to bite off more than they can chew."