What Is Black Friday: History, Tips & Shopping
Complete guide to Black Friday: history, deals, and smart shopping strategies for savings.
What Is Black Friday?
Black Friday represents one of the most significant shopping events in the retail calendar, marking the unofficial beginning of the holiday shopping season in the United States. Occurring the day after Thanksgiving, this annual event has transformed from a localized retail tradition into a nationwide phenomenon that shapes consumer behavior and spending patterns throughout November and December. Black Friday is characterized by steep discounts, limited-time offers, and doorbuster deals that retailers use to drive foot traffic and boost sales during what is typically the strongest retail period of the year.
The name “Black Friday” carries historical significance in the retail industry. It refers to the point at which retailers transition from operating at a loss (being “in the red”) to operating profitably (being “in the black”). This financial milestone has made Black Friday a symbol of commercial success and the beginning of profitable holiday trading for stores across the nation.
The Origins and History of Black Friday
Black Friday’s origins trace back to Philadelphia in the 1950s and 1960s. Local police officers coined the term to describe the day after Thanksgiving when hordes of suburban shoppers and workers descended upon the city for the annual holiday shopping season. The massive crowds and chaotic shopping atmosphere presented challenges for law enforcement, who had to manage traffic and oversee the throngs of retail-focused consumers.
The term gained national prominence through the 1960s as Philadelphia retailers began using it in advertising. What started as a description of post-Thanksgiving chaos evolved into a marketing advantage. Retailers realized they could capitalize on this day by offering substantial discounts and special promotions. By the 1980s and 1990s, Black Friday had become associated with significant sales and the official kickoff to the holiday shopping season across the entire United States.
The transition to modern Black Friday accelerated with the rise of e-commerce and online shopping. What was once primarily an in-store phenomenon now extends across multiple days and channels, with many retailers beginning their Black Friday promotions on Thanksgiving Day itself. Some retailers have extended Black Friday sales into “Black Friday Week,” capitalizing on the extended shopping mindset.
When Does Black Friday Occur?
Black Friday consistently falls on the day immediately following Thanksgiving Day in the United States. Since Thanksgiving is always the fourth Thursday of November, Black Friday consequently occurs on the fourth Friday of November each year. In 2025, Black Friday falls on November 28. This timing is no coincidence—retailers strategically chose this date to capture consumers’ attention right after the holiday and before they begin major Christmas shopping.
The scheduling has evolved over the years. Retailers now begin advertising and promoting Black Friday deals as early as October, and many launch online sales starting on Thanksgiving Day itself or even earlier. This extension of Black Friday into a longer promotional period reflects changing consumer shopping habits and the influence of online retail platforms that operate continuously.
Black Friday Shopping Trends and Consumer Behavior
Black Friday has become deeply embedded in American consumer culture. Recent surveys indicate that 57% of consumers plan to shop for themselves during the holiday season, with an average spending of $379 per person on self-gifts. This represents a significant shift toward personal spending during what was traditionally a season focused on buying gifts for others.
The economics of Black Friday shopping reveal important patterns. Many consumers carry debt from their Black Friday purchases throughout the following year. Statistics show that approximately 36% of Americans took on holiday debt last year, with an average balance of $1,181 among those who accumulated debt. Additionally, 33% of people currently have more credit card debt than emergency savings, creating a precarious financial situation for many households.
Payment methods have evolved significantly during Black Friday. Buy-now-pay-later (BNPL) services have emerged as increasingly popular alternatives to traditional credit cards. During the Thanksgiving and Black Friday period, BNPL usage surged, with orders rising 78% the week of November 19-25 compared to the previous week. However, financial experts note that while BNPL provides short-term relief, it can signal underlying financial strain among consumers who are stretching their purchasing power.
Common Black Friday Shopping Traps to Avoid
Understanding the psychological tactics retailers use can help shoppers make more informed decisions and avoid unnecessary spending. Black Friday is carefully designed to encourage impulse purchases and overspending through various marketing strategies.
Manufactured Urgency and FOMO
Retailers create artificial scarcity by limiting stock on popular items or restricting sales to specific time windows. This manufactured urgency triggers the Fear of Missing Out (FOMO) in consumers, compelling them to make quick purchasing decisions without proper consideration. Doorbuster deals available only for a limited time exemplify this tactic, as consumers feel pressured to buy immediately or miss the opportunity entirely.
Manufactured Wants Through Data Targeting
Modern retailers employ sophisticated data analytics and targeted advertising to create desires for products consumers didn’t initially need. Social media platforms amplify this effect through influencer marketing and algorithm-driven content that presents curated product recommendations designed to stimulate purchasing impulses rather than fulfill genuine needs.
The Diderot Effect
This psychological principle describes how purchasing one item often leads to a cascade of additional purchases as consumers attempt to create cohesive collections or complementary sets. A single discounted purchase can trigger multiple follow-up buys that weren’t part of the original shopping plan.
Misleading Price Comparisons
Not all Black Friday deals represent genuine savings. Retailers sometimes inflate regular prices before applying discounts, or they compare current prices to inflated “regular” prices rather than actual historical pricing. Price tracking becomes essential to verify whether a deal truly offers savings compared to normal pricing throughout the year.
Credit Card Interest Calculations
Consumers often underestimate the true cost of purchases made with credit cards. Interest charges accumulate based on the average daily balance method, meaning that even items purchased at significant discounts become substantially more expensive if the credit card balance isn’t paid in full before interest accrues. What appears to be a 40% discount can become much less valuable once credit card interest is factored into the equation.
Smart Black Friday Shopping Strategies
Pay Yourself First
Financial experts emphasize the importance of prioritizing personal financial health before engaging in holiday shopping. Before spending a single dollar on Black Friday deals, consider taking meaningful steps to strengthen your finances. This might include verifying that you’re receiving your full employer match on retirement contributions, canceling unused subscriptions, or adding funds to your emergency savings account. These actions should take priority over any potential purchases.
Establish and Maintain a Budget
All financial professionals stress the critical importance of establishing a clear budget before beginning Black Friday shopping. Review your spending from last year’s holiday season and set a realistic spending limit for this year. Create a specific list of items you intend to purchase and commit to buying only items on that list. This disciplined approach prevents getting swept up in the excitement of deal hunting and impulse spending.
Consider a Cutback Strategy
Financial therapist Ashley Agnew recommends reviewing your credit card and bank statements from last year’s shopping season, then setting a “cutback goal” of 10% to 20% reduction in spending. The critical element is investing the difference in a savings or investment account rather than simply spending less overall. This approach transforms reduced spending into financial growth, and year-over-year implementation can accumulate to thousands of dollars in investment savings.
Create a Personal Matching Program
For those with financial flexibility, consider creating your own personal matching program. For every dollar spent on gifts, deposit an equivalent amount into a retirement account such as a Roth IRA. This balanced approach allows for holiday enjoyment while simultaneously building long-term financial security.
Track Prices and Verify Authentic Deals
Use price tracking tools throughout the year to understand the typical pricing for items you’re considering purchasing. This data allows you to identify genuine deals versus inflated prices presented as discounts. Many online retailers provide price history that clearly shows whether a Black Friday price actually represents a savings compared to normal pricing.
Maintain a Needs and Wants List
Before Black Friday, create a comprehensive list distinguishing between genuine needs and discretionary wants. Be brutally honest about which category each item belongs to. During the shopping event, prioritize purchasing items from the needs category while carefully considering wants items. This framework prevents emotional or impulsive purchases that don’t align with your actual requirements.
Implement the Oops Fund
If you’re prone to overspending, financial planner Melissa Cox recommends setting aside an “Oops Fund” before Black Friday begins. This designated amount accounts for forgotten gifts, last-minute invitations to gatherings, or unexpected shopping needs that arise during the holiday season. Having this buffer prevents relying on credit cards for unanticipated expenses and reduces financial guilt associated with overspending.
Resist Scarcity Pressure
Remember that Black Friday is not the only opportunity to purchase items at discounts during the year. Sales occur regularly throughout the calendar, and many excellent deals appear outside of Black Friday. Resisting the artificial pressure created by scarcity messaging allows you to make rational purchasing decisions rather than emotionally driven ones.
Psychological Tactics Retailers Use
Understanding the psychological mechanisms behind retail marketing empowers consumers to make more conscious decisions. Retailers employ sophisticated strategies to influence behavior, including color psychology, sensory marketing, and strategic product placement. Limited-time offers create artificial urgency, while bundle deals and complementary product placement encourage larger basket sizes.
Social proof and influencer endorsements leverage peer pressure and aspirational psychology to drive purchases. Retailers also use anchoring tactics by displaying inflated “original prices” before showing discounted amounts, making savings appear larger than they actually are. Awareness of these tactics allows shoppers to evaluate purchases more objectively.
The Long-Term Financial Impact of Black Friday Shopping
While Black Friday provides opportunities for genuine savings on needed items, the long-term financial impact for many consumers is negative. The debt accumulated during Black Friday and the holiday season often persists for months or years afterward. Credit card interest compounds this problem, with consumers paying significantly more than the original purchase price when accounting for interest charges.
Financial experts note a concerning disconnect between spending behavior and stated financial goals. Most Americans identify saving more money as their top financial resolution for 2026, and surveys reveal that people believe they would be happier if they saved more than if they spent more. Yet year-end consumption patterns directly contradict these aspirations, with spending often undermining financial progress made throughout the year.
Black Friday in the Digital Age
The evolution of Black Friday has extended well beyond physical store doorbusters. E-commerce platforms now dominate Black Friday sales, offering convenience and expanded selection. Cyber Monday, occurring the following Monday, extends the promotional period and captures online shoppers specifically. Mobile apps and social commerce have introduced new shopping channels, making impulse purchases easier than ever through one-click purchasing.
The integration of online and offline retail has also blurred traditional Black Friday boundaries. Many retailers now offer online Black Friday deals starting on Thanksgiving Day, and some begin promotions even earlier. This extended promotional period means the psychological pressure to purchase extends far beyond a single day.
Frequently Asked Questions About Black Friday
Q: Why is it called Black Friday?
A: The term originated in Philadelphia during the 1950s-1960s to describe the day after Thanksgiving when suburban shoppers flooded the city for holiday shopping. In accounting terminology, “black” represents profit while “red” represents losses, so Black Friday signifies when retailers move from red ink to black ink profitability.
Q: When does Black Friday occur each year?
A: Black Friday always falls on the day immediately after Thanksgiving, which is the fourth Friday of November. In 2025, Black Friday occurs on November 28.
Q: How can I avoid overspending during Black Friday?
A: Establish a clear budget before shopping, create a specific list of items to purchase, avoid credit cards or pay them in full immediately, use price tracking tools to verify genuine discounts, and resist artificially created urgency by remembering that sales occur throughout the year.
Q: Is Black Friday really the best time to find deals?
A: While Black Friday offers discounts, they’re not necessarily the lowest prices available all year. Some items see better discounts during other promotional periods. Strategic shopping and price tracking throughout the year often yield better overall savings than Black Friday shopping alone.
Q: What is Cyber Monday?
A: Cyber Monday is the Monday following Thanksgiving and Black Friday weekend. It focuses on online deals and discounts, extending the promotional period for e-commerce retailers and online shoppers.
Q: Should I use buy-now-pay-later services on Black Friday?
A: BNPL services should be used cautiously. While they offer short-term payment flexibility, they can signal underlying financial strain and may lead to higher overall costs when interest and fees are considered. Use them only if you can afford to pay the full amount within the promotional period.
Q: How can I verify if a Black Friday deal is genuine?
A: Use price tracking tools to check historical pricing for items you’re considering. Compare the Black Friday price to typical prices throughout the year rather than the retailer’s suggested regular price, which may be inflated.
References
- Stop and do this before you buy anything on Black Friday — Morningstar/MarketWatch. 2025-11-27. https://www.morningstar.com/news/marketwatch/20251127151/stop-and-do-this-before-you-buy-anything-on-black-friday
- Winners, losers on Black Friday: BNPL payments — Payments Dive. 2025-11-26. https://www.paymentsdive.com/news/winners-losers-black-friday-bnpl-payments/637378/
- 6 Black Friday Spending Traps to Avoid — AARP. 2025. https://www.aarp.org/money/personal-finance/black-friday-spending-traps/
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