The tooth fairy is getting more expensive
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Illustration: Maura Losch/Axios
"Giftflation," or the rising cost of giving, is showing up in everything from birthdays to the tooth fairy, according to a new survey from retirement planner Empower, exclusively shared with Axios.
Why it matters: This is the latest sign that prices aren't easing the way the Federal Reserve might like.
What they're saying: "It's not just etiquette, it's economics," said Rebecca Rickert, head of communications and consumer insights at Empower.
- Consumers are adjusting their generosity to match their financial realities.
By the numbers: 75% of those surveyed said gifts are more expensive thanks to tariffs and inflation.
- Six in 10 say gifting has gotten "out of hand," and 48% reported "gift fatigue."
- A third (33%) are adopting a "no gifts" policy this year, asking others not to spend money on them at all.
- Millennials were the most likely generation to want to give the gift of time.
Zoom in: What's the going rate for giving these days?
- A birthday gift? $56 for adults, $83 for children.
- Kids receiving a weekly allowance can expect $37.
- The tooth fairy is paying $14.87. (Try getting that under a pillow!)
Zoom out: It's not just gift-giving that's been hit by the shifting economy; tipping is also changing.
- Those surveyed say they leave a median tip of 16% for takeout dining.
- That drops to 11% for food delivery, 14% for beauty services and 10% for rideshare services.
Between the lines: There's evidence of a more cost-conscious consumer behind these decisions.
- 63% say they shop for gifts based on price.
- 58% set aside a budget specifically for gifts.
The bottom line: The tooth fairy is likely not being surveyed by regional Fed presidents for a sense of tooth-flation.
- But these numbers indicate how the exchange of generosity has also been hit by the macro backdrop: one with sticky inflation and a challenged consumer.
