With Valentine’s Day approaching, it's intriguing to explore the economics of love—how much we spend, why we do it, and whether it’s worth the investment. Romance, like any market, operates on supply, demand and consumer behaviour with prices fluctuating based on cultural expectations and economic conditions.

 Valentine’s Day traces its origins to ancient Rome, where the festival of Lupercalia on Feb 13-15 celebrated fertility and matchmaking. Later, it was linked to Saint Valentine, a priest who secretly performed marriages against Emperor Claudius II’s orders and was executed on February 14, 269 AD. By the 14th century, poets like Geoffrey Chaucer romanticised the day, associating it with courtship. By the 19th century, mass-produced Valentine’s cards became popular, evolving into today’s global celebration of love, marked by gifts, flowers, and heartfelt gestures¹.

Valentine's Day spending reflects the economic climate, with key factors affecting consumer confidence, inflation and jobs affecting people's spending². When the economy is doing well, unsurprisingly, people spend more, buying bigger gifts and planning grand celebrations. So let's get into the economics of Valentine's Day a bit more.

The Rising Costs of Valentine’s Day 

Valentine’s Day has evolved into a multi-billion-dollar industry, with spending trends rising each year. Many would argue that it has become a commercialised celebration driven by consumerism, where businesses capitalise on romantic expectations to boost sales. Social media has magnified these romantic expectations, where individuals often showcase their gifts and experiences, creating a culture of comparison and competition. The desire to "outperform" others in demonstrating love and affection further fuels consumer spending.

The costs associated with celebrating love include: 

• Gifts and Flowers: The price of roses often surges in February due to increased demand, demonstrating classic supply and demand principles. Florists and retailers anticipate this spike, adjusting prices to maximise profits during this peak season. 
• Dining Out: Restaurants capitalize on the holiday by offering special (and often pricier) Valentine’s menus. Many establishments introduce fixed-price dinners with curated courses, which are marketed as exclusive experiences, thereby justifying higher prices. 
• Jewellery and Luxury Items: Retailers view Valentine’s Day as a peak sales period, aggressively marketing high-end gifts as ultimate expressions of love. Campaigns often emphasize that nothing says "I love you" like a sparkling diamond or luxury watch, reinforcing the association between material value and emotional significance. 

Spending statistics reveal the staggering scale of Valentine’s Day as an economic event. The US tops the chart by a significant margin for average spending per person, with an astonishing $192.50. According to Statista, it is predicted that in the U.S. alone, consumers will spend approximately $6.5 billion on jewellery, $5.4 billion on a night out, $5.4 billion on flowers and candy, and “only” $1.4 billion on cards³. These figures highlight how the holiday drives substantial revenue across multiple industries, from florists to fine dining to luxury retailers.

In comparison, the United Kingdom ranks second, with average spending per person significantly lower at a predicted $52-$70 for 2025, less than half the amount spent by the average American ⁴. This stark contrast underscores the cultural and economic differences in how Valentine’s Day is celebrated across countries.

Behavioural Economics and Romantic Spending 

Behavioural economics and psychology offer profound insights into why individuals often spend more than they intend on Valentine’s Day. This can be attributed to a complex interplay of cognitive biases, emotional drivers, and social influences that shape consumer behaviour in subtle yet powerful ways.

One of the most significant factors is the influence of social norms and peer pressure. Valentine’s Day is culturally framed as a time to express love and affection through material gifts and special experiences. Societal expectations often create an implicit standard of what constitutes an appropriate display of affection, leading individuals to feel obligated to spend money to meet these norms. The fear of social judgment or being perceived as less committed can drive people to purchase extravagant gifts, not necessarily out of personal desire but to conform to the expectations set by their social circles and media portrayals. 

Loss aversion, a key concept in behavioural economics, further amplifies this tendency. According to this principle, people experience the pain of loss more intensely than the pleasure of an equivalent gain. In the context of Valentine’s Day, the potential “loss” is emotional—the fear of disappointing a partner, causing relational strain or appearing neglectful⁵. This fear can motivate individuals to overspend, as they aim to avoid the negative emotional consequences associated with perceived inadequacy or failure to meet their partner's expectations.

The halo effect⁶ also plays a pivotal role in Valentine’s Day spending. This cognitive bias causes people to associate the quality of a gift with the depth of the giver’s affection. Expensive gifts are often perceived as indicators of greater love and commitment, leading consumers to equate higher spending with stronger emotional expression. This misconception can pressure individuals to choose costly items, believing that their monetary value will enhance the perceived sincerity of their sentiments. 

Another influential bias is anchoring⁷ where initial exposure to a price sets a mental benchmark that influences subsequent purchasing decisions. High-end advertisements and luxury brand promotions prevalent during the Valentine’s season establish these anchors, making moderately priced items seem more reasonable or affordable by comparison. This effect can subtly nudge consumers towards spending more than they initially planned, as their perception of value has been skewed by earlier price exposures. 

The scarcity principle⁸ adds yet another layer to the dynamics of Valentine’s Day spending. Limited-time offers, exclusive deals, and seasonal products create a sense of urgency and exclusivity. This scarcity effect taps into the fear of missing out (FOMO), compelling consumers to make impulsive purchases to secure what they perceive as rare or fleeting opportunities. Retailers strategically exploit this bias through marketing tactics that highlight the limited availability of certain products, thereby driving up demand and, consequently, consumer spending.

Cultural Variations in Valentine's Day Celebrations 

Valentine's Day is celebrated differently around the world, reflecting diverse cultural norms and traditions. In Japan, for example, women typically give chocolates to men on February 14, with men reciprocating a month later on White Day⁹. In South Korea, the celebration extends even further, with couples marking the 14th of every month as a special occasion, such as Kiss Day and Rose Day¹⁰. In Finland and Estonia, Valentine's Day is more about celebrating friendship rather than romantic love, known as Friend's Day¹¹. In contrast, countries like France and Italy emphasise romantic gestures steeped in historical traditions, such as exchanging love letters and symbolic gifts. These cultural variations influence how people spend money on the holiday, with local customs shaping the types of gifts, experiences, and economic behaviours associated with Valentine's Day. 

Conclusion: Balancing Love and Economics 

While love is priceless, the way we celebrate it comes with financial implications. Recognising the behavioural and economic factors behind romantic spending can help individuals navigate Valentine’s Day with both their hearts and wallets in mind. Perhaps the best investment is not in expensive gifts but in meaningful, lasting experiences that strengthen relationships without breaking the bank.

Works Cited

1. “The untold truth about Valentine's Day: From violence to modern-day romance.” NBC Washington, 2025, https://www.nbcwashington.com/entertainment/holidays/history-behind-valentines-day/3824661/.
2. “The Cost of Valentine's Day in the US vs Other Countries.” Remitly, 2025, https://blog.remitly.com/lifestyle-culture/cost-of-valentines-day/.
3. “Valentine's Day total expected spending on selected gifts in the United States in 2025, by category.” Statista, 2025, https://www.statista.com/statistics/285034/us-valentine-s-day-sales-by-category/.
4. Barber, Sophie. “Valentine’s Day statistics 2025: What is the average spend? Source: https://www.finder.com/uk/credit-cards/best-credit-cards/valentines-day-statistics Analysis conducted by finder.com.” Finder, 2025, https://www.finder.com/uk/credit-cards/best-credit-cards/valentines-day-statistics.
5. Tsipursky, Gleb. “Valentine’s Day Gift Giving with a Purpose: How to Make a Difference Together.” Intentional Insights, 2024, https://intentionalinsights.org/valentines-day-gift-giving-with-a-purpose-how-to-make-a-difference-together/.
6. “Why do positive impressions produced in one area positively influence our opinions in another area?” The Decision Lab, https://thedecisionlab.com/biases/halo-effect.
7. “Anchoring (heuristic).” Behavioural Economics .com, https://www.behavioraleconomics.com/resources/mini-encyclopedia-of-be/anchoring-heuristic/.
8. Chen, James. “Scarcity Principle: Definition, Importance, and Example.” Investopedia, 2024, https://www.investopedia.com/terms/s/scarcity-principle.asp.
9. “White Day.” About Japan: A Teachers Resource, 2025, https://aboutjapan.japansociety.org/white_day#sthash.tsPqtrVT.dpbs.
10. “Why the 14th day of each month in Korea is special.” Korea.net, 2021, https://www.korea.net/NewsFocus/HonoraryReporters/view?articleId=200941.
11. Godin, Melissa. “Why Valentine’s Day in These European Countries Is All About Friendship.” The Times, 2020, https://time.com/5778265/valentines-day-finland-estonia/.