Monday, December 5 2022

Only 14% of American consumers say they save money for Christmas shopping.

SAN MATEO, California., November 14, 2022 /PRNewswire/ — Americans plan to adopt a cautious stance on gifts, travel and other spending this holiday season, a mood buoyed by economic worries about inflation, rising interest rates, layoffs and the threat of a looming recession, the report said a new report reported by Reachthe leading digital personal finance company.

That 2022 Season Spending Reportpublished by the Achieve Center for Consumer Insights, found that 69% of US adults plan to limit their spending on gifts $500 this year, while another 14% said they didn’t want to buy gifts. The report also found that just 14% of Americans say they have separate savings for holiday spending, while one in five consumers wish they had created a special savings plan for the holidays.

“While most Americans are planning with limited travel this year, many still wish they had better prepared financially for the holiday season,” said Achieve co-founder and co-CEO Brad Straw. “The large gap in consumers pursuing special vacation savings plans is of particular concern as household debt burdens are at an all-time high and continue to mount.”

The data and findings in the 2022 Season Spending Report is based on an online survey of 1,000 US consumers ages 18-65, including a statistically significant sample of Generation Z adults. Data is representative of the Census Bureau’s benchmarks of the US population for age, sex, race and ethnicity.

Stay home for the holidays

Almost half of those surveyed plan to celebrate the holidays at home this year, while another 28% say they have no plans at all. Among those who will travel, most plan to stay in the US, typically to visit family. Respondents whose annual household income has expired $100,000 are almost three times as likely to take a domestic holiday during this holiday season as those on a lower income $100,000. The report also found that feelings about giving gifts vary by age, gender and relationship status.

  • Women are about twice as likely as men to say they put a lot of effort into choosing gifts.
  • Men stated almost three times more often than women that they would like to give away technical devices.
  • Baby Boomers were most likely to say they dislike giving gifts, while Millennials and Gen Z were most likely to describe themselves as generous and thoughtful.
  • Married respondents were more likely to consider themselves last-minute shoppers than consumers who are single, engaged/cohabiting, or divorced/widowed.

“Finances contribute significantly to holiday stress,” said Stroh. “But consumers who protect their budgets and focus on their priorities this season will come through the holidays with less stress and potentially more money in their bank accounts.”

Vacation Pay Trends

Consumers are planning a combination of different methods to pay for their holiday expenses for gifts, new outfits, food and entertainment. Most rely on available funds, which they access from their bank accounts, supplemented by credit card spending. Although overall use of paper checks is minimal, a surprising 9% of Millennials expect to use them, compared to just 4% in each of the Gen X and Baby Boomer generations. Other payment methods like payday loans and money orders play a much smaller role in most consumers’ vacation purchases.

  • While gift-giving is reticent, 20% of respondents said they expect their credit card debt to increase $1,000 or more during the holidays.
  • Gen Xers (5%) and Millennials (6%) expect they will need the most help tackling holiday debt. Regardless, 65% of baby boomers – the highest proportion of any generation – believe they will keep their spending under control.
  • Among those who expect to roll over $5,000 17% of holiday credit card debtors believe they need outside help to manage their debt. Conversely, only 2% of consumers plan to add less than $500 to their credit card balances believe they need the same kind of support.

Tips from Achieve: 5 steps to building a vacation budget

Many people resist creating a budget because they think it’s just to limit spending. Instead, treat your budget as a tool to help you direct spending on the things that matter most to you. Any good budget is based on prioritizing and setting realistic goals.

  1. Determine the amount you can spend this year without incurring unnecessary debt.
  2. Think carefully and list everything and everyone you plan to spend money on during the holiday season. Add gifts, greeting cards, decorations, holiday meals, and end-of-year tips for service providers. Finally, don’t forget about upcoming travel expenses, even if you’re just traveling across town to visit loved ones.
  3. Then start listing gift ideas and provide prices. You may need to change the gifts you want to buy to avoid going over budget.
  4. When the budget looks tight but you don’t want to cross anyone off your gift list, gift time can mean a lot more than a wrapped gift.
  5. Keep in mind what your vacation vision is and that vacations really were never meant to create financial stress.

Via the Achieve Center for Consumer Insights

The Achieve Center for Consumer Insights is an ongoing initiative leveraged by the team of Achieve digital personal finance experts to provide insight into the state of consumer finance. In addition to sharing insights from Achieve’s proprietary data and analytics, the Achieve Center for Consumer Insights publishes in-depth research, tailored data, and thoughtful commentary in support of Achieve’s mission of helping everyday people find their way to a better financial future.

About Achieve

Reach is a leader in digital personal finance. Our solutions help everyday people get on and stay on the path to a brighter financial future with innovative technology and personalized support. Leveraging proprietary data and analytics, our solutions are tailored to every step of a consumer’s financial journey, spanning personal loans, home loans, debt help, and financial tools and education. headquarters in San Mateo, CaliforniaAchieve has more than 2,700 dedicated employees located across the country with hubs in California, Arizona and Texas and has regularly been recognized as the Best Place to Work.

Achieve and its affiliates are subsidiaries of Freedom Financial Network Funding, LLC, including Bills.com, LLC d/b/a Achieve.com (NMLS ID #138464) Equal Housing Lender; Freedom Financial Asset Management, LLC (NMLS ID No. 227977); Freedom Resolution (NMLS ID #1248929); and Lendage, LLC d/b/a Achieve Loans (NMLS ID #1810501), Equal Housing Lender.

SOURCE Reach

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