Debt.com surveyed 1,200 people on their plans for holiday shopping, and most will spend less this year than last.
A new Debt.com survey reveals for the first time in a decade Americans will spend less on the holidays this year.
More than 40 percent attribute their lack of spending to the COVID-19 economic crisis. But nearly three out of five told Debt.com they will trim their holiday budget due to psychological reasons.
When asked why they’ll spend less, 37 percent said: “I don’t expect loved ones to spend much on me due to the pandemic.” Meanwhile 23 percent, “feel less pressure to buy gifts because of virtual celebrations.”
How much will Americans cut back this year?
Nearly three-fourths (73 percent) said they’ll spend less than $500, while only 18 percent said they’ll spend up to $1,000.
That’s a significant difference considering the National Retail Federation – the largest retail trade association in the world – reported the average American spent more than $1,000 last year.
Most Americans will trim their holiday budget
Only 41 percent of survey respondents are cutting back for financial reasons
Three-fourths said they’ll spend less than $500 on this holiday season
Most respondents still plan to meet love ones in-person
Methodology: Debt.com surveyed 1,227 people and asked six questions related to their holiday spending. People responded from all 50 states and Washington, DC and were aged 18 and above. Responses were collected through SurveyMonkey. The survey was conducted from Sept. 21, 2020 to Oct. 8, 2020.