There are multiple ways to save money during the holiday season, even though it is a time where many are tempted to shell out more cash. This can become a problematic situation, but with some financial discipline, it could turn out well.
A sizable amount of consumers will likely cut back on spending this winter, as average gift spending will be approximately $738 this year, according to a report from the National Retail Foundation. This would be around 2 percent lower than last year, when the average was slightly higher than $752. Despite the decline in average spending, there may be more people getting in the mood to purchase gifts, as this could jump 4 percent to more than $602 billion.
One method that some shoppers may adhere to is cutting down the level of purchases they make for themselves. The report noted that 57 percent will purchase an item because the deal is too good. However, this is less than the 59 percent of last year. Those who purchase items for themselves will spend approximately $130 this season, which is down from the past two years, when the figure was $140 and $137, respectively.
This could signal that some are becoming more careful with their financial strategy, and are making more of an effort to save money.
More Americans aware of overspending
Spending too much may be on the minds of many Americans, and getting more comfortable with using less money may be the next step for many.
Close to 75 percent of individuals plan to spend less, according to a report from Bankrate.com. The main reason for this is a lack of increases in income, while a sizable portion of those polled also noted that they are trying to save more money. Less than 30 percent of consumers noted that they still are not worried about their spending habits.
No matter what age a person was, the majority felt that their savings situation isn’t as good now as it was 12 months ago, the report noted. However, those approaching retirement had the most significant worries of any age group.
Despite this, those who are younger than 50 explained they are in a better financial situation than they were 12 months ago, the report added. Every age demographic polled did note they are making more money now than before.