The holiday season can be a time when some individuals forget about their financial strategy due to other expenses they would not otherwise have the rest of the year. This can be tricky, especially if a person does not factor in these costs beforehand.
Approximately 85 percent of individuals think they will either spend the same amount of money or more on various gifts and products this holiday season as they did last year, according to a report from the Pennsylvania Real Estate Investment Trust. A total of 15 percent of those who plan to use more money this year will spend it on electronics, while nearly the same level will increase their gift card acquisitions. Another 13 percent will buy more clothes, while one in 10 noted that they plan to purchase items for their home.
Despite this, some are actively looking to save money through various channels. The report explained that 75 percent of Americans want to focus on discounts and coupons from stores, while nearly 70 percent will go to brick-and-mortar businesses in order to take advantage of promotions that only exist if they go to a location.
Nearly half of those polled said that they are not making as much money as they did one year ago, the report noted. Close to 45 percent were actively worried about their debt and want to lessen it during this period.
Many Americans look to spend less
Despite some worrying that they will need to spend more money, some are trying to curb this monetary output. According to a report from the National Retail Foundation, Americans will spend an average of $737.95 this holiday season.
However, that level is lower than the $754.24 that individuals averaged last year, the report noted. Despite this, there will still be a boost in holiday sales this year, as it may jump to nearly 4 percent compared to 2012.
This trend may signal that more financial strategies could be used by consumers this holiday season, as many attempt to cut debt levels, maximize their savings and get their finances back on track.
There are still issues with consumers spending too much on themselves during the holidays, but the level may be lower than usual. According to the report, those who plan to spend money for their own items will pay $129.62, on average. This is less than last year’s $140.43.