If you’re planning to cut back on holiday spending, you have some company. A recent survey conducted by the Consumer Federation of America and the Credit Union National Association found consumers will be spending a little less this year.
Roughly 10% of survey respondents said they would spend more while 33% said they would spend less. Last year, 13% said they would spend more while 32% said they would spend less. The CFA notes that those who said they would spend less declined from 5% in 2008 to 32% last year before increasing slightly this year.
The survey also points out that more consumers are saying they will do some belt tightening despite gradual improvements in the economy and employment. Says the CFA, “When asked to compare their current income with their income a year ago, 27% said it was higher while only 21% said it was lower. When asked to compare their financial situation with that of a year ago, 28% said it was better while only 24% said it was worse.”
In addition, when respondents were queried about their concern meeting monthly payments on different types of debt, the number declined from 49% in 2013 to 43% in 2014. When asked whether they have additional money available to pay for an unexpected expense of $1,000, the number who said no fell from 49% in 2013 to 47% in 2014.
Will you be spending more or less this year? We’d like to know what your plans are for this year’s holiday shopping season.