Fintech company Affirm has revealed the findings of its latest report on consumer spending predictions over the coming holiday season.
The findings show that consumers in the US are planning to spend more intentionally, with 49% of them skipping spending on the Secret Santa tradition this year.
The majority of Americans (85%) are planning to buy physical gifts rather than spend on experiences like concerts and events. In addition, 78% of consumers plan to keep their spending under $1,000.
Moreover, 49% of Americans will spend at least $100 or more on their loved ones, while 58% will pass spending money on gifts for their coworkers, compared to 79% who bought gifts last year.
“This year, the holiday shopping season is going to look a lot more intentional. Our research shows that consumers are prioritizing gifts for their loved ones while presents for coworkers and ‘Secret Santa’ gift swaps fall off the list. They're also doing their holiday shopping earlier, and many plan to buy things at a discounted price,” said Ashmi Pancholi, VP of Consumer Insights at Affirm.
When it comes to holiday shopping budgets, 60% of US consumers usually exceed them, with 48% going over by $500. Additional budgeting this year may put increasing strain on some consumers since 42% of Americans reported that budgeting for all purchases they need to make was one of the top sources of stress during the holiday season.
Almost half (42%) of respondents said they would give up receiving gifts if it meant not having to give gifts this year's holiday season.
As far as increased prices go, 32% of consumers reported they plan to start their holiday shopping earlier this year while 41% plan to buy things at a discounted price.
“We have identified a distinct decline in consumers’ preference for credit cards during the holiday season, with nearly half as many shoppers planning to use credit cards for gifts this year (35%) compared to last year (62%). Making purchases on a credit card without being able to pay it off is a top stressor for a quarter (24%) of Americans this holiday season," Pancholi added.
