A majority of Americans will curtail holiday spending this year, according to a new survey from CFP Board of Standards.
Sixty-eight percent of those surveyed plan to spend the same or less than they did last year, and 83 percent know how much they plan to spend on gifts, the survey says.
“Each holiday season, financial planners feel some anxiety as our clients begin to splurge on gifts for friends and family,” says CFP Board Consumer Advocate Eleanor Blayney. “We can’t help but worry what this spending today will mean for their long-term financial goals, from saving to buy a new home or preparing for retirement. This survey suggests that Americans are aware of the importance of thinking about their holiday spending within the context of their overall financial life.”
The survey of 1,025 American adults found that only 20 percent say they will go into debt for gifts and, of those, 69 percent plan to have $500 or less in new debt.
Fifty-two percent of the respondents have been saving for gift expenses and 5 percent say they will use holiday bonuses to finance the purchases.
The majority of respondents who plan to cut back their holiday spending cite not having enough money as their reason. Only 16 percent will reduce their spending because of the economic climate and 9 percent because of unemployment or furloughs. Of those who had a budget for gift spending in previous years, 61 percent stuck to the budget.