I’m not here to tell you that buying an artificial Christmas tree is the right thing for your personal finances. But it could save you a ton of money. As an owner of an artificial Christmas tree, I can also say that not having to constantly give it water and vacuum up all the dead needles is a huge plus as well.
If you’re on the fence about which type of tree to buy this year, here’s how each one will affect your budget over the next 10 years.
Fake trees save you real cash
According to the American Christmas Tree Association (ACTA), the cost of a real tree is up 10% compared to last year, with the price ranging between $80 to $100. That’s no small sum of money, especially when you consider that the average consumer already plans to spend an estimated $975 on holiday gifts this year.
Of course, artificial Christmas trees aren’t cheap either. The ACTA says that 52% of consumers who buy fake trees pay $200 or less, and 27% pay between $200 to $400.
But despite their potentially higher cost, artificial trees also last a very long time. Faux trees can be used from 10 to 20 years.
I found a nice 7.5-ft pre-lit artificial blue spruce tree on Target’s website on sale for just $120 if you buy it online. If we assume that it will last 10 years, the low end of a fake Christmas tree’s estimated lifespan, then the only money put toward the tree over that time is $120.
Conversely, if you buy an average-priced live tree at about $90 every year, you’ll end up spending $900 over 10 years. If you subtract the $120 one-time cost of an artificial tree, the fake one will save your Christmas budget about $780 over the course of a decade.
Of course, inflation will provoke real and artificial tree prices to boost in the next decade, which could impact the savings calculate. And if you buy a high-end artificial tree, it will take longer for the savings to kick in.
How to set up a quick Christmas budget
The decision to buy a real or artificial tree this Christmas may be driven more by your tradition than your budget. Growing up, I would have been appalled if my parents bought a fake tree. Now I have one, and the rest of my family does, too.
But there are few ways you can keep your holiday budget in check this season, no matter which tree you buy.
- Set a gifts budget: The cost of small gifts can add up quickly, and it’s easy to overspend when you’re not keeping track. Set a firm amount and try not to go over the limit. It may be hard, but that’s kind of the point of budgeting.
- Set an experiences budget: This is separate from the gifts budget because there are lots of fun things to do during the holidays. Unfortunately, go through gifts are getting more expensive, so help reign in the costs by setting a budget for fun outings.
- Use apps to comparison shop: There are lots of apps that help you contrast prices, saving you both time and money. Download a few and set reminders for items you want, so you know when they’re on sale.
- Find free things to do: This is a favorite of mine because I never know what my kids will appreciate anyway. My small city has some great Christmas lights downtown, a parade, and Christmas tree displays inside a few hotel lobbies. My kids will definitely ask for hot chocolate though, so it might not be entirely free.
I’ve definitely overspent during the holidays, but over the past few years I’ve realized that reigning in that spending and being more intentional about how I spend my time and money during the Christmas season actually helps me slow down and savor it more.
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