Blowing The Holiday Budget is a Holiday Tradition - Other News


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Blowing The Holiday Budget is a Holiday Tradition

Blowing The Holiday Budget is a Holiday Tradition
The content is accurate at the time of publication and is subject to change.

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.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
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