TD Bank Survey Highlights Consumer Holiday Budget Plans
TD Bank has released its latest Merry Money Survey, highlighting consumer plans and habits for the upcoming holiday shopping season.
About the survey:
For the survey, TD polled more than 2,000 consumers in the United States about their money management heading into the holiday season. To start, consumers were asked about their economic outlook through the year’s end. While 68% of respondents cited concerns about how inflation might impact their holiday shopping, that result was down from the 75% who said the same in last year’s survey.
As the shopping season ramps up, 70% of those surveyed said they are planning to create a budget before December. However, 96% of consumers stated that they expect to end up overspending this season. Nevertheless, 80% of respondents noted that they actively seek price cuts and other special offers in order to make their budget go further. Additionally, two-thirds stated that they intend to trim their spending in other areas ahead of the holiday season in order to bolster their gift budget.
Not surprisingly, retail holiday events also play a big role in consumer shopping plans. Three-quarters of those surveyed said they participate in annual sales events. Specifically, 51% plan to shop on Black Friday compared to 30% for Cyber Monday.
In terms of how consumers plan on paying for their holiday purchases, 43% said that debit cards are their primary payment option. Also notable is that, while 78% of those surveyed report having a rewards credit card, only 37% intend on redeeming their rewards toward holiday purchases. TD also found that one in five consumers intends to open a new credit card this shopping season — mostly in order to take advantage of welcome bonus offers.
What they’re saying:
Commenting on this year’s survey results, TD Bank Head of Consumer Products Matt Boss said, “With economic concerns top of mind for consumers throughout the year, planning ahead can help prevent some of the financial stress that holiday shopping can place on them. Setting a holiday budget and sticking to it is the first step that shoppers can take to maintain their peace of mind this holiday season.”
As disheartening as it is to see that nearly all of the consumers surveyed already expect to bust their holiday budget, acknowledging this fact does mean that they’re at least paying attention to their spending overall. That’s key as, during the holidays, costs of gifts, travel, and other expenses can add up quickly. Hopefully, by remaining savvy, cutting costs where possible, and standing firm on gifting budgets, consumers can escape the 2023 shopping season financially unharmed.