With many people in the U.S. getting a jump start on purchasing gifts for the winter holidays, Union Bank, a leading West Coast bank, revealed findings of a new survey to understand how people are spending their hard-earned cash this holiday season, including:
"While many of us enjoy spending time with family and friends during the holiday season, it can also be a stressful time of year for many," said Pierre P. Habis, head of consumer banking at Union Bank. "In fact, we find that people feel pressure to overspend and may make poor financial decisions at this time of year, the repercussions of which can linger for months into the New Year. But if we can use the holidays as an opportunity to talk about money, we can learn and adopt better financial habits that will help us all year long."
Spend to Impress
The recent Union Bank Holiday Spending survey revealed that although two out of three U.S. consumers will give themselves a budget, it will still take 33 percent of them six months to recover from the holidays and pay off credit card debt. In fact, three in 10 people in the U.S. admit to spending more money than they should just to impress family and friends, and another four in 10 feel pressure to spend on those they don't want to.
"Having a realistic budget and planning ahead are the best ways to control holiday spending," said Tonya Rapley, millennial money expert, creator of the award-winning site My Fab Finance, and Union Bank expert partner. "Start with creating a budget that works with your holiday plans and wallet. Write a list of all the people you want to buy for, and include other related holiday expenses, such as travel costs, hostess gifts, gift wrap, holiday groceries, etc., and set a dollar amount for each. Also, the earlier you start, the more you can shop around for sales and special deals. It's important to remain focused and resist temptation to add last-minute impulse items when you're pressed for time or want to make your gift seem more meaningful."
Mom and Me
Mom reigns supreme! Americans are most willing to go into debt to purchase Mom her dream gift, especially those in Gen Z, with 57 percent willing to go into debt compared to Millennials at 33 percent and Gen X at 21 percent. Gen Z will also spend just as much on holiday gifts for themselves as they do on Mom, with one in five planning to spend over $250.
Making the List
When it comes to spending, more than 40 percent of consumers in the U.S. focus gift-giving efforts on their inner circles, specifically family and friends. However, both Gen Z (35 percent) and Millennials (34 percent) are more likely to extend their pocketbooks to their work colleagues, compared to Gen X (28 percent) and Boomers (16 percent).
What do gift recipients really want, though? Despite most U.S. consumers planning to give openable presents to those on their list (66 percent), more Americans would prefer gift cards (51 percent) or cash (45 percent) than a present they can open (41 percent).
Look Who's NOT Talking
Holidays are often a great time to treat a significant other. As with everything in a relationship, communication is key, especially when it comes to setting gift-giving expectations. Sixty-three percent of those in a relationship start the holiday season concerned about over-committing, and half are at odds about how much to spend on each other. A lack of communication from the start also leads to half of those in a relationship believing they spend more on their significant other's gift than their significant other spends on theirs, with men more likely to think so at 58 percent versus 38 percent of women.
'Tis the Season
The most wonderful time of the year often goes hand-in-hand with overindulgences. U.S. consumers rank their holiday concerns:
Other Holiday Confessions
Aware of her elements, Neha writes the best articles across industries including electronics & semiconductors, automotive & transportation and food & beverages. Being from the finance background she has the ability to understand the dynamics of every industry and analyze the news updates to form insightful articles. Neha is an energetic person interested in music, travel, and entertainment. Since past 5 years, she written extensively on sectors like technology, finance and healthcare.
Smarter Decisions with Smart News
Smart Market News is committed to getting its readers the latest updates and insights on industries that help in making “smarter” business decisions. With insights and inputs from corporate decision makers, we bring you the stories of adopting innovative solutions and strategies that have been changing the world. Our editorial insights on products, solutions, companies, and adoption of best practices not only help in understanding the markets better, but also prove to be a complete package for your information needs.