25% of survey respondents said they plan to cut charitable giving
As the 2023 holiday season approaches, consumers don’t see a jolly outlook, with 40% of polled respondents believing the economy will continue to get worse in the next six months, according to findings from a consumer survey by ScoreSense, a credit score monitoring product. The survey focused on consumers’ sentiments about the economy, plans for spending, and how they expect to pay.
“Many people are tightening budgets wherever they can, which includes discretionary and charitable spending.”
With 40% of survey respondents concerned about their finances to pay for the upcoming holidays, consumers are trying to save money this season. Compared to last year, 43% are expecting to spend less on holiday shopping this year. More than half (55%) plan on just staying home for the season, and 24% plan to spend less on travel compared to last year. Times are tough, as 25% plan to give less to charity in 2023, and one out of four people will be seeking help from charities due to their current finances.
Top Insights
- Nearly 40% of respondents are very or extremely concerned about their finances and paying for the upcoming holiday season. Sixty-eight percent of respondents ranked inflation as the top reason consumers are feeling financially stressed. Not having enough money saved was the second top response, which was more often mentioned by those under the age of 55 vs. those older.
- About one-third of respondents are hopeful and think their finances will get better in the next six months. Those between the ages of 25-44 were significantly more likely to say they think their finances will get better compared to those older.
- With the holiday shopping season approaching, 43% expect to spend less this year compared to last year. The top reason for spending less this year is that they need to save more money. For those who plan to spend more this year for the holidays, inflation and higher prices are the main reasons.
- Consumers’ budgets for holiday spending on gifts, food, and décor for this year are low, with 44% planning to spend less than $400. Reducing or eliminating travel was mentioned by 43% to better manage budgets. Those between the ages of 45-54 were more likely than all other age groups to say they’re reducing or eliminating travel to reduce their holiday budgets.
- To shop for holiday gifts this year, 68% mentioned they plan to buy on Amazon.com as well as department stores or super centers. Another 37% said they plan to buy gifts at discount stores. Resell stores such as thrift stores, antique shops, consignment stores, and pawn shops also are a popular option, mentioned by 47% of respondents. Those between the ages of 25-44 were more likely to shop at a resell outlet. Sixty-three percent of respondents plan to purchase clothing, and more than half mentioned they would purchase toys or hobby items from resell shops.
- For 34% of respondents, credit cards will be the main method of financing their holiday shopping. Those over the age of 54 were more likely than younger age groups to say they will use credit cards. Debit cards were mentioned by 30%, more frequently by those between the ages of 25-44.
- One-third of respondents mentioned that their holiday spending would somewhat add to their current debt. However, 50% mentioned they will pay off credit cards immediately.
- Holiday season donations to charity, such as toy drives, food pantries, and meals-on-wheels, will remain the same amount as last year for 37% of respondents. Sadly, 25% mentioned they plan to give less than last year due to their current finances this year.
- 1 out of 4 people will be seeking help from charities this holiday season. Those between the ages of 25-44 were more likely to need help from charities compared to older groups.
- Over half of the respondents plan on just staying home for the holiday season, while nearly 40% mentioned they will visit relatives and/or friends. Almost one quarter (24%) plan on spending less on travel this year compared to last year. And 25% are considering cancelling their holiday travel plans due to high costs.
“Inflation and other factors have led to record credit card debt, increases in credit delinquencies, and tighter household budgets for many American families,” said Carlos Medina, senior vice president at One Technologies, LLC., which offers ScoreSense. “Many people are tightening budgets wherever they can, which includes discretionary and charitable spending.”
ScoreSense serves as a one-stop digital resource where consumers can access credit scores and reports from all three main credit bureaus—TransUnion®, Equifax®, and Experian®—and understand what is most affecting their credit.
Read More: SalesTechStar Interview with Kevin McWey, Chief Revenue Officer at DataVisor
