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

 

 

Do you plan to spend more or less this holiday season compared to last due to the pandemic? More The same Less
Percentage of respondents 4.66% 32.95% 62.39%
Why will you spend less? Percentage of respondents
I lost my job due to the pandemic 11.12%
I feel less pressure to buy gifts because of virtual celebrations 22.61%
I lost part of my household income 29.54%
I don’t expect loved ones to spend much on me due to the pandemic 36.74%
Approximately how much money did you spend last year’s holiday season? Percentage of respondents
Less than $250 27.70%
$250 to $500 30.49%
$500 to $1,000 25.66%
$1,000 to $1,500 9.67%
More than $1,500 6.48%
How much do you plan to spend this holiday season? Percentage of respondents
Less than $500 73.34%
$500 to $1,000 18.13%
$1,000 to $1,500 6.07%
More than $1,500 2.46%
How do you plan on celebrating fall and winter holidays during the pandemic? Percentage of respondents
In-person 30.78%
Virtually 17.90%
A combination of both 51.32%
How will you do most of your shopping? Percentage of respondents
Online 34.01%
In-store 12.51%
Combination of online and in-store 47.83%
Not holiday shopping 5.64%

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.