Credit Card News
Advertising Disclosure
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » News » Other » Blowing The Holiday Budget is a Holiday Tradition

Blowing The Holiday Budget is a Holiday Tradition

By
Add to Favorites:
Blowing The Holiday Budget is a Holiday Tradition
November
30

If year after year you find your self overspending at holiday time you are not alone, with eight out of 10 consumers (78%) indicating that they are in the same boat, according to the new TD Bank Merry Money Holiday Spending Survey, with most overspending by $215 on average.

What are they overspending on? It all depends, 65% of people spent more when looking for the perfect gift, yet on the other hand 57% go for small impulse buys, which can include anything from stocking stuffers to a special treat.

Yet self gift giving is also trending adding to the holiday budget blowout, with just about half of respondents (49%) saying that they buy themselves a treat or two while shopping. Incidentals also add to the budget overage with 61% going to town on gift cards and wrapping paper.

Millennials making those budgets

When it comes to making budgets, millennials lead the way, being the most likely generation to make a holiday budget (64%), while 52% of gen xers and just 43% of baby boomers are making budgets. And millennials are a little more likely to stay on point, but just slightly (73% of millennials vs. 70% overall).

When it comes to their average holiday spend, millennials spend less, coming in at a $515 spend, while their elders spend more (gen xers $589 and boomers $530).

What about re-gifting? Here too, millennials are more likely to gift a friend or family member with a gift they’ve already been given and don’t want or need. With 61% doing just that, while 56% of gen xers and 47% of boomers admit to re-gifting.

Credit cards, debit cards and cash

When it comes to how they are going to buy their gifts, 55% go with debit cards, feeling that they are more convenient (61%), and make budgeting (59%) a lot easier. On the other hand, when heading to the register to pay for big ticket purchases 56% opt to use their credit cards, and the same holds true when shopping online.

But that does not mean they don’t use cash – they do, with 57% paying for gifts with cash, while 7% use prepaid cards.

Paying as you go is the way to go for 48% of people, but 25% are planning on paying down their holiday bills over time, taking three months or more to clear the debt.

What makes a gift a winner? Well, for over 22% the person giving the gift made the present their favorite, not the actual gift. Yet some gifts do hit sweet spots, with electronics (20%) still taking the top spot and jewelry taking second place (12 %).

The Merry Money Holiday Spending Survey was carried out by MARU/Matchbox, a research company, from November 10 to 14.

Add to Favorites:

Related News:

The Sky's The Limit for Parents During the Holidays

By Dar Dowling, Posted: November 14, 2016

Do you find yourself spending more money than you planned during the holidays to make your kids dreams come true? Continue reading
Small Business Owners Are Optimistic

By Dar Dowling, Posted: October 13, 2016

Uncertainty may be in the air when it comes to politics, but holiday shopping is just around the corner. That translates to small business owners being optimistic when it comes revenue, growth and income. Continue reading
Consumers Getting a Jump on Holiday Shopping

By Dar Dowling, Posted: November 07, 2016

If you have been buying holiday gifts and squirreling them away you're in good company, according to the new American Express Spending & Saving Tracker. Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Get 0% Intro APR on Balance Transfers and Purchases for 21 months. After that, the APR will be 12.24%-22.24% based upon your creditworthiness.
For Excellent/Good Credit
1% cash back on select purchases, terms apply
For Fair Credit
Guaranteed $500 Unsecured Credit Limit
For Bad Credit