Acadar predicts moderate spending on gifts, travel for the 2022 holiday season | Tech US News

[ad_1]

Only 14% of US consumers say they set aside savings dedicated to holiday shopping.

SAN MATEO, CA, November 14, 2022 /PRNewswire/ — Americans plan to take a moderate approach to gift-giving, travel and other spending this holiday season, a sentiment spurred by economic worries about inflation, rising interest rates, layoffs and the threat of a looming recession. , according to a new report. report by achieveleader in digital personal finance.

O 2022 season expense reportpublished by the Achieve Center for Consumer Insights, found that 69% of American adults plan to limit their spending on gifts in $500 this year, while another 14% said they don’t plan to buy any gifts. The report also found that only 14% of Americans say they have separate savings for holiday expenses, while one in five consumers want to make a dedicated holiday savings plan.

“While most Americans are making plans with limited travel this year, many still wish they could do a better job of preparing financially for the holidays,” said the co-founder and co-CEO of Achieve. Brad Stroh. “The wide gap in consumers making dedicated holiday savings plans is particularly concerning, given that household debt is at record levels and rising.”

The data and findings no 2022 season expense report are based on an online survey of 1,000 US consumers aged 18-65, including a statistically significant sample of Generation Z adults. The data is representative of the Census Bureau’s benchmarks of the US population in terms of age, sex, race and ethnicity

Staying home for the holidays

Almost half of respondents plan to celebrate the holidays at home this year, while another 28% say they have no plans. Among those who will travel, most plan to stay in the United States, usually to visit family. Respondents whose annual family income exceeds 100,000 dollars are almost three times more likely to take a national holiday this holiday season than those on lower incomes 100,000 dollars. The report also found that feelings about gift-giving vary by age, gender and relationship status.

  • Women were about twice as likely as men to say they put a lot of effort into choosing gifts.
  • Men were almost three times more likely than women to say they like to give tech gadgets.
  • Baby boomers were more likely to say they don’t like giving gifts, while Millennials and Generation Z were more likely to call themselves generous and thoughtful.
  • Married respondents were more likely to consider themselves last-minute shoppers than single, engaged/living with a partner, or divorced/widowed consumers.

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

Holiday Pay Trends

Consumers plan to use a combination of methods to pay for holiday spending on gifts, new clothes, food and entertainment. Most will depend on available funds accessed from your bank accounts, supplemented by credit card spending. While the overall use of paper checks is minimal, a surprising 9% of Millennials expect to use them, compared to just 4% each of Gen Xers and Baby Boomers. Other payment methods, such as payday loans and money orders, play a much smaller role in most consumers’ holiday shopping.

  • While gift-giving may be moderate, 20% of respondents said they expect their credit card debt to increase by $1,000 or more during the holidays.
  • Gen Xers (5%) and Millennials (6%) expect they will need the most help managing holiday debt. On the other hand, 65% of baby boomers, the most of any generation, believe they will keep their spending under control.
  • Among those who hope to accumulate $5,000 on holiday credit card debt, 17% believe they will need outside help to deal with their debt. Conversely, only 2% of consumers who plan to add less than $500 to their credit card balances believe they will need the same kind of assistance.

Achieve Tips: 5 Steps to Building a Vacation Budget

Many people resist making a budget because they think it only serves to restrict spending. Instead, treat your budget as a tool that helps guide spending on the things that are most important to you. Any good budget is built around setting priorities and making realistic goals.

  1. Determine how much you can spend this year without incurring unnecessary debt.
  2. Carefully consider and list everything you expect to spend during the holidays. Includes gifts, greeting cards, decorations, holiday meals and year-end tips for service providers. Finally, don’t forget about upcoming travel expenses, even if you’re just traveling across town to visit your loved ones.
  3. Then start listing gift ideas and include prices. You may need to modify the gifts you wish to purchase to avoid exceeding your budget limit.
  4. If the budget seems tight, but you don’t want to take someone off your gift list, the gift of time can mean so much more than a wrapped gift.
  5. Remember what your vision for the holidays is and that the holidays were never meant to create financial stress.

About the Achieve Center for Consumer Insights

The Achieve Center for Consumer Insights is an ongoing initiative that leverages Achieve’s team of digital personal finance experts to provide insight into the state of consumers’ finances. In addition to sharing insights gleaned from Achieve’s proprietary data and analytics, the Achieve Center for Consumer Insights publishes in-depth research, personalized data and thoughtful commentary in support of Achieve’s mission to help everyday people get on and stay on the path to a better financial future.

About Achieve

achieve is the leader in digital personal finance. Our solutions help everyday people get on and stay on the path to a better financial future, with innovative technology and personalized support. By leveraging proprietary data and analytics, our solutions are tailored to every step of the consumer’s financial journey and include personal loans, home loans, debt help and financial tools and education. Headquartered in San Mateo, CaliforniaAchieve has more than 2,700 dedicated employees across the country with centers within California, Arizona e Texas and has been regularly 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 #227977); Resolution of Freedom (NMLS ID #1248929); and Lendage, LLC d/b/a Achieve Loans (NMLS ID #1810501), Equal Housing Lender.

SOURCE Achieve

[ad_2]

Source link

Please disable your adblocker or whitelist this site!