While most recent polls have painted Americans as being frustrated and unhappy with the nation’s economic situation, that doesn’t seem to be slowing down their spending for the holidays. A new survey by Bank of America shows US consumers are spending more—seven percent more—this holiday season. Go figure!
Here are the details from B of A:
According to a new Bank of America survey, Americans plan to spend an average of $2,100 outside of typical obligations and necessities this holiday season, a 7% increase from 2023. Gen Z and Millennials plan to spend more than Gen X and Baby Boomers, with men planning to spend more than women.
Other key findings include:
- 62% of Americans anticipate feeling financial strain around holiday expenses – down from 67% in 2023.
- 48% of shoppers are planning to do more online shopping during the holidays.
o Among BofA credit and debit cardholders, daily online spending at retailers increased by approximately 35% in November and December 2023, compared to the daily average spend in non-holiday months (January-October 2023).
- Black Friday remains the most popular holiday sale (54%) throughout the year.
- According to Bank of America’s recent Holiday Gift Card Survey, 75% of consumers prefer to receive a gift card this holiday season, a 13% increase from last year (62%).
Bank of America offered some tips on how to keep holiday spending under control:
- Look for ways to save on gift giving: Gift-giving adds up, but the good news is there are no set rules and many ways to show your love. A few options include:
- Look for deals on experiences: Experiences can make the best gifts – and if you do your research, there are great deals during the holidays. For example, look for discounts on amusement park tickets, couples’ massages or even a meal subscription to indulge in a restaurant-quality experience at home. When you can find deals on experiential gifts, you can create lasting memories and stay on budget.
- Picking thoughtful gifts – not necessarily expensive ones: Remember that when giving a gift to a loved one, it’s the thought that counts. For example, if you need to spend less this holiday season, consider options like homemade DIY gifts, acts of service, or sentimental presents.
- Go in on group gifts: If you’re watching your spending, try group gift exchanges like White Elephant or Secret Santa, which allows everyone to participate without the cost of individual gifts.
