Americans Plan To Spend $1000 on Holiday Shopping This Year, Survey

• American consumers plan to spend $998 on holiday shopping this year, according to data from a National Retail Federation (NRF) survey
• Higher consumers prices have been driven by labour shortages and supply chain issues that are likely to lead to product shortages.
• Shoppers are advised to track their spending and take advantage of holiday sales and cash back rewards to avoid overspending.

The holidays are fast approaching and though it is supposed a blissful season, it can come with increased financial burdens for many individuals. According to a new survey by the National Retail Federation (NRF), American consumers plan to spend on average  $997.73 on holiday shopping this year. The survey report reveals that holiday shoppers plan to spend a good fraction of this money on “…gifts, holiday items and other non-gift purchases for themselves and their families.”

The survey involved 7,921 U.S. adults who answered questions about their winter holiday shopping plans. It was conducted between October 1 and 10 and reflects the shopping plans Americans have this year.

With the high consumer prices fueled by supply chain issues, labor and product shortages, holidays celebrations this year will be more costly as compared to the previous years. Still, NRF President and CEO Matthew Shay says that consumers are ready to celebrate and have planned to spend on holiday shopping with gift-shopping on top of the list.

Shay also observes that Major retailers have taken measures to curb inventory shortages and supply chain problems to ensure product availability. He says:

“Every year retailers plan their seasonal inventory, staffing and product promotions well in advance for the busy holiday season. … The retail industry is working diligently with ports, labor, shippers and transportation providers as well as government officials to overcome supply chain challenges and make sure consumers have access to the gifts they want to give and, just as important, receive.”

This year, 90% of adult Americans have plans to celebrate holidays including the just passes Thanksgiving Day, Christmas, Hanukkah and Kwanzaa. This figure is up by 3% from 87% in 2020.

With such information, you are advised to diligently plan your holiday shopping spending to avoid being weighed down with personal loan debts as we enter the New Year.

Read along for tips to keep holiday spending in check including how reduce the use of funding tools such as “buy now pay later” and pay day loans to finance your holiday shopping.

3 Tips To Keep Your Holiday Shopping Spending In Check

It is possible to save on your holiday shopping and still get a perfect Christmas present for everyone on your gift list. Use the following three tips to keep your holiday spending in check so that you can enter into the New Year with less financial burdens:

1. Budget For Your Gift Giving: It is easy to keep an eye of your holiday spending when you have a budget in place. As such, it is import to have a budget in place before you start your gift shopping. Having a gift giving budget in place, for example, helps you to be accountable and reduce overspending.

Apart from gifts, you should also budget for other items on your holiday shopping list including decorations, postage to mail gift packages and season cards, and ingredients for meals and baking. If you plan on traveling, account for how much you are able to spend on gas, plane tickets and hotel stays.

2. Track your spending: A budget will not make any sense if you do not keep tack of your spending against it. Use a budgeting app to track your spending. There are a number of free budgeting apps that that you can link to your bank account to send you a notification if you nearing your spending limit.

 However, budgeting apps are not effective for everyone. The associated technology can be too overwhelming for some people, and if you are one such person, you can withdraw a lump some of money. With this, you will stop shopping when the cash runs put and this avoid overspending.

Many personal finance advisors believe that it is easy for you to spend when using a credit or debit card. They way that paying cash forces you to be more creative during shopping and find more special and meaningful gifts.

3. Take advantage of Credit Card Rewards: Cash Back Credit Card rewards can earn you cash back not only on your holiday purchases but also on your airline mile that you can redeem when travelling for holidays. But if you have no plans of travelling, you can be able to redeem your points to purchase gifts for your family and friends.

 Therefore, if you have credit card rewards from holiday stays or airline points from travels, you can be sure to cash them out for gift cards and other merchandise to help you reduce your spending when doing your holiday shopping.

Bottomline

Even as the holiday season lingers and many Americans planning to spend nearly $1,000 on holiday shopping, consumer prices are expected to remain high due to supply chain issues, labor and inventory shortages. Therefore, consumers are advised to put shopping strategies in place to track their spending and take advantage of holiday sales and cash rewards with an aim of avoiding overspending.