How Thanksgiving Teaches Us About the Real Economics of Giving
- Eshan Patel
- Nov 25
- 2 min read
When do you think of when you hear “Thanksgiving”? I think it boils down to the three F’s: Food, Football and Family. But, it is also such a great example of how economics is present in everyday life!
It is the perfect mix of topics such as choice, scarcity, opportunity cost and the power of community. These are all things that drive our world, and Thanksgiving can represent all of it
1. The Thanksgiving Table Is Basically a Microeconomics Lesson
Shopping for Thanksgiving dinner is greater than just picking out the favorites. Decisions are made all the time. These decisions lead to trade-offs without you even realizing it:
Turkey or ham?
Homemade pies or store-bought?
Host at home or eat out?
Every choice has an opportunity cost which is the value of the next best alternative you gave up. If your family buys a larger turkey, maybe they skip an expensive dessert. If you're traveling, maybe that means less spending on gifts later. These choices drive decisions made by your family, and in turn that affects you.
These everyday decisions mirror the same trade-offs consumers make in the broader economy.
2. Why Food Prices Matter More on Thanksgiving
Thanksgiving makes price changes feel real.Turkey prices, for example, rise and fall based on:
Supply shocks (avian flu, feed costs, transportation costs)
Seasonal demand (everyone wants turkey at the same time)
Labor shortages
Gas prices (affect shipping and grocery store operations)
When people walk into a grocery store and see the cost of a Thanksgiving meal go up, it becomes a direct lesson in inflation. In 2024, for example, many families saw Thanksgiving meal prices increase, which was a direct effect of our country’s inflation, leading to purchasing power decreasing. That change happens continuously and it is a necessity to keep our economy stable.
3. Thanksgiving Spending Boosts the Economy
Spending on Thanksgiving helps to drive our economic growth. Consumers spend billions every year on:
Groceries
Travel
Restaurants
Holiday sales starting Black Friday
Decorations
Entertainment
One of the biggest parts of the GDP is consumer spending. By this period having such high consumer spending, all this activity contributes to GDP growth. For many businesses, Thanksgiving week is one of the most important periods of the year.
4. The Economics of Gratitude: Why Giving Is Efficient
When people donate food, volunteer at shelters, or support local nonprofits during Thanksgiving, they create positive externalities. These are benefits that spill over to people who weren’t directly involved.
Helping others has so many great benefits and Thanksgiving is the time of year where we see the most of this. It strengthens communities, reduces pressure on social services, and creates a culture of generosity that lasts beyond November.
5. What Can You Learn From Thanksgiving Economics
Even if you're not the one buying the turkey, Thanksgiving teaches teens a lot about finance:
Budgets matter: holiday spending adds up quickly
Planning ahead saves money and stress
Inflation affects everyone
Giving has real economic impact
Every choice has a cost (even small ones)
Thanksgiving is personally one of my favorite holidays. Not just because everyone in my family comes together, but it is also a reminder of how interconnected people, prices, choices, and communities really are. Have a great Thanksgiving everyone!
