Survey: How Consumers Feel About Holiday Shopping in 2024

Experian surveyed 1,002 consumers to see how they felt coming into the holiday season and how they were planning to spend. Survey conducted September 25 through October 1, 2024. The sample was collected using a third-party company and was not from Experian’s consumer credit database.

The holidays may be a time for family, friends and festivities, but they can also be fraught with financial pitfalls. More than half (56%) of consumers reported feeling stressed about their finances during the holiday season, according to a new Experian survey. Nearly two-thirds (63%) said they spend too much during the holidays, while 68% said economic inflation will impact their shopping this year. Here’s a closer look at how consumers expect to spend heading into the holidays.

Holidays Pose Budget Challenges, But Consumers Say They Are Prepared

Sticking to a budget can be challenging at any time of year, but the deluge of holiday deals, sales and gift-giving can make it even harder. Some 89% of consumers admitted they’re tempted to spend more than they should during the holiday season, while 94% indicated they’d be tempted to make an unplanned purchase if the item were on sale. Over half (55%) of consumers said holiday deals have caused them to overspend; these big spenders said they are most likely to splurge on gifts for others.

Most consumers are determined to resist that temptation this year, with 67% saying it’s more important to save money than to give the best gift and 69% feeling motivated to improve their finances before the holiday season. To prepare for holiday expenses, 54% of consumers plan to put aside money for gifts this year, while 43% intend to tighten their budgets before the holidays.

Question: What do you typically overspend on during the holidays?

How Will Shoppers Pay for Holiday Purchases This Year?

Cash is still the most popular way to pay for holiday purchases, with 41% of consumers planning to forgo credit cards altogether and pay solely with cash. However, most consumers said they will use a mix of cash and credit cards to cover holiday costs, and a smaller share of consumers said they will use credit card rewards points and layaway.

Nearly 6 in 10 consumers (59%) said they generally use credit cards, not cash, when holiday shopping. Half said they plan to use two or more credit cards to buy holiday gifts. However, 44% of consumers said they’ll spend less on their credit cards this year than in the past due to high interest rates.

Question: How do you plan to pay for your holiday gifts this year?

Consumers Planning to Apply for New Credit Cards Seek Rewards to Maximize Spending

Using credit cards strategically can help you handle holiday costs. To maximize their spending, 25% of consumers said they plan to assess their existing credit cards to determine the best one for holiday purchases. In addition, 15% of all consumers and one-quarter of consumers ages 18 to 44 planned to apply for a new credit card before the holidays.

Among consumers who intended to open a new credit card this holiday season, cash back is king: 41% were looking for cards that offer cash back rewards. Despite current high credit card interest rates, just 23% of consumers were seeking a credit card with an introductory 0% annual percentage rate (APR). More than a quarter of consumers (27%) are seeking store credit cards that offer discounts, while 26% want a new card with travel rewards and 18% will be applying for their first credit card.

Question: Why do you plan on opening a new credit card or retail card?

Stress Over Holiday Spending Is on the Rise

Holiday shopping has been triggering consumers to feel gradually more stressed every year for the past five years, according to previous Experian surveys. This year, 33% of consumers reported feeling stressed, up from 25% in 2020. Some 29% reported feeling anxious and 27% said they feel overwhelmed.

What’s causing all the tension? Nearly half of consumers (45%) admitted feeling obligated to spend more than they can afford on holiday gifts, while 49% said the extra expense of the holidays makes it hard to enjoy the season. In addition, one-third of consumers said they worry that holiday spending will negatively affect their credit.

Overall, though, positive feelings about holiday shopping generally outweigh the negative. Some 38% of consumers reported feeling joyful at the thought of holiday shopping, while 36% said they feel excited, 31% said they feel generous and 30% said they feel grateful.

Question: When you think about holiday shopping, how do you feel?

Smart Moves for Holiday Spending

Shopping with credit cards can offer benefits that cash doesn’t, such as return protection, price protection and extended warranties on your holiday gifts. But credit cards that offer valuable rewards, welcome bonuses and lower interest rates are typically reserved for those with good to excellent credit.

If you’re considering applying for new credit before the holidays, make sure your credit is in good shape first. You can check your credit report and FICO Score for free to see where you stand, which will give you an idea of which cards you might qualify for. Experian can also show you credit cards matched to your unique credit profile, which can help make it easier to get the best card for your needs.

The post Survey: How Consumers Feel About Holiday Shopping in 2024 appeared first on Experian’s Official Credit Advice Blog.

https://www.experian.com/blogs/ask-experian/survey-consumer-spending-during-holiday-season/

#financialfreedom #money #entrepreneur #business #finance #investing #financialliteracy #success #investment #wealth #motivation #financialindependence #passiveincome #personalfinance #realestate #stockmarket #debtfree #entrepreneurship #invest #bitcoin #creditrepair #debtfreecommunity #investor #trading #workfromhome #stocks #credit #financialeducation #bhfyp

Scroll to Top