Sharing the Love This Valentine's Day Will Cost a Little More Cites the 2020 "Cost of Loving Index" from Houston Asset Management
HOUSTON, Feb. 6, 2020 /PRNewswire/ -- While the perfect Valentine's Day gift comes from the heart, your wallet will be squeezed just a little this year.
Expect to pay 20 percent more to share a toast with a bottle of Russia River Valley chardonnay and four percent more for a candlelight dinner for two, according to the 2020 "Cost of Loving Index" from Houston Asset Management.
The "Cost of Loving Index," which tracks the year-to-year price changes on nine popular Valentine's Day gift items, was initiated three decades ago. The advisory firm wanted to create an interesting and memorable way to communicate to clients how inflation and discretionary spending impact savings.
"After 30 years, there is still so much interest in the Cost of Loving Index," said Bob Frater, CFP®, CEO of Houston Asset Management. "Our clients, business associates and friends look forward to it every February. And although it is not a scientific study, we have found that it tracks closely to the Consumer Price Index. Isn't that an interesting coincidence?"
Overall, the 2020 "Cost of Loving Index" reveals gifts of affection are priced 3.5 percent higher than the last two years when prices remained stable.
However, prices for five of the nine gifts on the Index are unchanged from last year including some luxury items, such as a lovely heart-shaped box of Godiva chocolates at $100 and an alluring one-ounce bottle of Chanel No. 5 perfume at $340.
Other gifts that did not increase in price are a first-run movie for two ($25.86), a Valentine greeting card ($6.25), and a woman's nightie ($59.50.) But if you are considering a designer silk tie as a gift, it costs 11 percent more this year at $195.
The National Retail Federation (NRF) predicts a record year of spending for Valentine's Day up 21 percent over last year's previous record with individuals spending an average of $196.31. The NRF survey cites consumer confidence, driven by strong employment numbers and higher wages, as responsible for spreading the gift-giving love.
The NRF survey also cites a continued trend of consumers buying more tokens of love for those other than their significant other, such as friends, co-workers and pets. Pampering pets on Valentine's Day has been an increasing trend for several years.
"Perhaps we should consider adding a pet gift to the Cost of Loving Index," joked Frater.
For more information about Houston Asset Management, visit www.HoustonAssetMgmt.com.
About Houston Asset Management Inc.
Founded in 1980, Houston Asset Management is a full-service registered investment advisory firm offering financial planning and investment advisory services. The firm works in partnership with its clients to help provide prompt and efficient solutions to problems and achievement of clients' objectives. For more information visit www.houstonassetmgmt.com. Houston Asset Management is located at 1800 West Loop S, Ste 1980, Houston, TX 77027, (713) 629-1534. Securities offered through SagePoint Financial, Inc., member FINRA/SIPC. Investment advisory services offered through Houston Asset Management, Inc. a registered investment advisor not affiliated with SagePoint Financial, Inc.
Highlights of the 2020 "Cost of Loving Index" by Houston Asset Management
- Luscious bites: A heart-shaped box of Godiva chocolates has cost $100 since 2013.
- Roses are red: A dozen long-stemmed roses delivered to your sweetie will cost $154.26.
- Popcorn please: The price of two tickets to a first-run movie has more than doubled since 1990 when it cost $12. Now you'll spend more than $25.
- Unmentionable: The price of a silk designer nightie is unchanged at $59.50 and double what it cost in 1990.
- Floral fragrance: $340 for a one-ounce bottle of Chanel No. 5 perfume marks the highest priced gift on the list and is up 4.2 percent this year. The price of the well-known perfume jumped 14 percent in 2013 when Brad Pitt was its celebrity spokesperson.
- Pop a cork: A bottle of Simi California chardonnay increased 20 percent this year. At $36, it now costs $10 more than it did in 1990.
- Flat prices: Prices for five of the nine popular gifts tracked in the "Cost of Loving Index" were unchanged from 2019.
For more information contact:
Judi Martin, JM Group
713-299-5619
[email protected]
SOURCE Houston Asset Management
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