TD Bank's Annual Survey Reveals Holiday Shoppers This Year Plan to Trim Spending & Avoid Overspending
More than 40% of respondents are still facing recession anxieties, which include the impact of the election, according to
TD polled 2,000+
"The uncertainty of an election season, coupled with the current volatile economic environment, is making this holiday season even more stressful for consumers," said
Have Yourself a (Budget) Mindful Holiday
Though interest rates and inflation are trending down, shoppers are still getting strategic with their spending and taking advantage of seasonal deals. In fact, more than half (55%) of respondents plan to make the bulk of their purchases on November’s Black Friday.
To further combat overspending, 81% of respondents have considered ways to keep their budgets in line. Some shoppers are spending less this season, with one-third (33%) of respondents indicating that they are reducing their gift spending compared to previous years. As another way to avoid overspending, 22% are setting aside extra money in advance of the holidays. Additionally, 61% of people are cutting back on other discretionary spending, such as dining out, in preparation for holiday budgets.
While many are focusing on saving, Gen Z stands out as the most likely to indulge in self-gifting, with 38% admitting to going over budget to buy gifts for themselves, compared to 30% of Millennials, 25% of Gen X, and 17% of Baby Boomers.
Shoppers Unwrapping Memories
This year’s survey also revealed that shoppers are gradually shifting from traditional wrapped presents to experiences, reflecting a change in how they approach holiday giving. Nearly half (45%) of consumers plan to gift experiences over physical items, with younger generations leading the way. Gen Z (68%) and Millennials (61%) are at the forefront of this movement, while Baby Boomers (23%) remain more attached to conventional gifts.
The trend is particularly strong among higher-income households, with 55% of those earning
All I Want This Year is Purchase Protection
When it comes to holiday shopping, consumers are prioritizing both rewards and security in their payment choices. Debit cards still lead the way, with 42% of shoppers choosing them as their preferred method of payment. Credit cards follow closely at 34%, with many consumers drawn to the perks they offer and 69% of those who prefer credit cards citing rewards or cash back as the primary reason for their choice. Additionally, 31% of credit card users say the enhanced protections provided by credit cards, such as fraud prevention and purchase protection, are key factors in their decision. Meanwhile, 18% of respondents still prefer cash or checks for their holiday spending.
“During the holiday season, shoppers are not only looking for great deals but also for added protections that provide peace of mind," said
Festive and Financially Fit
Despite the holiday season bringing some financial uneasiness for many shoppers, there’s a silver lining as consumers remain optimistic about managing their budgets and are taking the steps to remain financially well in periods of increased spending. Nearly three-quarters (73%) of respondents admit to feeling financial anxiety, yet most are determined to stay on top of their spending.
Most consumers (86%) who have overspent during past holidays have considered adjusting their future holiday spending habits to avoid overspending. Additionally, 62% of credit card users plan to pay off their holiday shopping balances in full by
With global trends top of mind for many this holiday season, consumers also revealed:
- Jingle All the Way, AI is in Play: Almost one-fifth (19%) of respondents are considering using generative AI for their holiday shopping ideas this year. Of those respondents, more than two-thirds (69%) indicated that they have a preference for brands that offer AI or virtual reality features.
- Some Gifts Come with Expectations: Of those who do plan to give cash gifts, more than half (52%) of respondents have a specific hope for what recipients will use the money for.
- In Hopes that Retirement Soon Would Be Here: Alarmingly, 17% of respondents have adjusted their contributions to their retirement savings in order to account for an increase in holiday spending. This change is most noticeable among Gen Z and Millennials, with 25% of each group making adjustments, compared to just 14% of Gen X and 7% of Baby Boomers.
“Budgeting, maximizing deals, and strategically using credit card rewards are all great ways to keep spending in check. By planning ahead and taking advantage of available offers, people can enjoy the holidays without the financial strain that can follow the season,” added Mitchell.
This data is for general informational purposes only. It is not intended to provide specific financial, investment, tax, legal, accounting, or other advice and should not be acted or relied upon without the advice of a professional advisor. A professional advisor will recommend action based on your personal circumstances and the most recent information available.
Methodology
About Big Village Insights
Big Village Insights is a global research and analytics business uncovering not just the ‘what’ but the ‘why’ behind customer behavior, supporting clients' insights needs with agile tools, CX research, branding, product innovation, data & analytics, and more. Big Village Insights is part of Bright Mountain Media. Find out more at https://big-village.com.
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catherine.achey@td.com
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