Christmas shopping is becoming more popular as consumers look to save money.

• The holiday shopping season for 2023 began early and is predicted to continue until the end of the year.
• According to a report by McKinsey & Company, 50% of holiday shopping occurred in October or earlier, with 40% taking place in November.
• This holiday season, young parents and women are likely to spend more, but spending time with family can be costly.
• The use of "buy now, pay later" installment services has increased significantly, with a total of $8.3 billion in transactions recorded in November 2023, according to a report by Adobe Analytics.

This holiday season, the focus is on "girl math" as consumers adopt new seasonal spending habits.

If you buy gifts months before Christmas, you will save more by December. If you spent during Cyber Week, you are technically saving for Christmas day.

Welcome to girl math — but with a holiday twist.

The trend of "girl math" on TikTok focuses on personal finance and how women justify their spending habits through mental gymnastics to maximize their happiness.

The term "girl math" is criticized for implying that women are not skilled in mathematics or managing finances.

Kicking off 2023 holiday shopping

During this holiday season, the resurgence of girl math could indicate that shoppers are experiencing financial pressure but are still unable to resist purchasing.

While inflation has stabilized, prices remain high and consumers are still spending.

A Bankrate study reveals that over half of holiday shoppers feel financially burdened during the current season.

Despite their caution, "consumers still want to celebrate the holiday season," Bryan Gildenberg, managing director at Retail Cities, said in late November.

Analysts predict that shoppers may use "girl math" to justify their purchases during the gifting season as costs continue to rise.

Melissa Lee, a financial consultant from Great Eastern, explained to CNBC that an extended holiday season could be considered "girl math" because shoppers might view discounts as "saving money." For instance, a 40% discount on a $100 item would mean saving $40 to them.

Shoppers use girl math to create a mental label for their money and justify their spending habits, according to her.

According to McKinsey & Company, holiday shopping began earlier in 2022 and is predicted to continue until the end of the year.

Before Halloween, the 2023 U.S. holiday season began with an increasing length, as 50% of holiday shopping started in October or earlier, followed by 40% in November, according to a McKinsey report. Consumers also indicated that they preferred to make purchases over a few months rather than all at once, and began browsing earlier in anticipation of price increases, their research showed.

In October, online spending reached an all-time high of $76.8 billion, which is $4.3 billion more than the previous year, according to a report by Adobe Analytics.

According to a forecast by the National Retail Federation, holiday spending is predicted to increase in November and December, reaching a total of $966.6 billion in 2023. The CNBC/NRF Retail Monitor showed that November's core retail sales, excluding restaurants, automobiles, and gasoline, were up 0.73% month-on-month and 4.17% year-on-year.

Many people believe there is still much shopping to be completed.

According to a Morgan Stanley survey, 61% of consumers plan to shop between December 1st and Christmas Day, expecting better deals than those offered on Black Friday and Cyber Monday in late November.

Who spends more?

Despite the end of summer, shoppers seem unfazed and continue to spend during winter.

The report by PwC predicted that women will continue to boost the economy with their record-breaking attendance at movies and live concerts in summer, spending 11% more this year compared to 2022 and more likely to spend on gifts compared to their male counterparts.

Women's increased spending may not be due to frivolous spending; instead, it reflects their strategic approach to finding the best value for their money.

According to a report by PwC, women prioritize value, free returns, shipping, and convenience over sticker prices when making purchases.

Additionally, young parents were highlighted as a prominent consumer demographic this holiday.

According to Ted Rossman, senior industry analyst at Bankrate, young adults are a significant holiday shopping group, particularly when they have children, during their peak consumption years.

According to Bankrate's report, 49% of parents with children under 18 years old took advantage of October sales, compared to 28% of holiday shoppers without kids.

While spending the holidays with your family can be enjoyable, it can also be expensive.

According to a study by Rocket Money, individuals staying with family during the holiday season are predicted to spend 53% more.

A study revealed that more than half of those celebrating the holidays with family consider their overspending in 2022 to be a "moderate to serious problem."

Alternative payment methods

This holiday season, credit cards continue to be the preferred financing option for shoppers, with a Forbes Advisor survey revealing that 52.3% of Americans plan to use credit cards and borrow to pay for gift purchases.

According to the survey, 42% of respondents plan to increase their credit card balances by at least $501, with 11% anticipating charging more than $1,000.

A preference for more flexible payment methods is also on the rise.

Installment plans have become increasingly popular among consumers who want to buy now and pay later.

On Cyber Monday, BNPL reached a record high of $940 million in online purchases, up 42.5% from the previous year, according to Adobe Analytics. Additionally, the report indicated that the average number of items per order increased by 11% year-over-year, as consumers are utilizing BNPL for larger carts.

Several months of debt can be paced out with flexible payment methods like BNPL, which are increasingly popular among shoppers who don't want to feel the immediate financial impact of their spending, according to Lee.

The report by Adobe Analytics stated that BNPL made $8.3 billion from Nov. 1-27, possibly making it the biggest month on record for the payment method.

— CNBC’s Michael Bloom contributed to this report.