Holiday Spending Trends: Insights and Tips for 2023

The holiday season is upon us, and with it comes the excitement and challenges of holiday shopping. At O1ne Mortgage, we understand that managing your finances during this time can be a bit overwhelming. That’s why we’re here to provide you with insights from a recent survey conducted by Experian, which sheds light on consumer spending plans and sentiments for the 2023 holiday season. If you need any mortgage services, don’t hesitate to call us at 213-732-3074. We’re here to help!

Most, but Not All, Consumers Plan to Spend This Season

The holiday season is synonymous with increased spending for many, but not everyone is planning to open their wallets this year. According to the survey, 1 in 6 consumers indicated that they do not intend to spend any money on holiday shopping. This trend is more pronounced among households with annual incomes of less than $50,000, where 21% of respondents are opting out of holiday spending. In contrast, only 11% of those with higher household incomes plan to refrain from spending.

Interestingly, those who are not spending in stores are also less likely to give cost-free gifts such as homemade crafts or baked goods. This suggests that the holiday spirit may be less prevalent among those who are not participating in traditional shopping activities.

Most Consumers Say They Plan to Budget for the Holidays

Budgeting for the holidays can be a daunting task. Despite the challenges, a significant number of consumers are making an effort to create and stick to a holiday budget. The survey revealed that 38% of respondents do not have a holiday budget, but the majority plan to keep their spending at or under $500. Nearly a quarter of respondents expect to spend between $500 and $1,000, while 18% anticipate spending more than $1,000.

Creating a budget can help you manage your finances more effectively and avoid the stress of overspending. Whether you use traditional methods like envelope stuffing or modern mobile apps, having a budget in place can make your holiday season more enjoyable and less financially burdensome.

Will That Be Cash, Credit or Buy Now, Pay Later?

When it comes to paying for holiday purchases, consumers are using a variety of methods. The survey found that 75% of respondents plan to use cash for at least some of their purchases, while 56% will rely on credit cards. Additionally, 15% of consumers are turning to buy now, pay later (BNPL) plans to finance their holiday shopping.

Each payment method has its pros and cons. Cash can help you stick to your budget and avoid debt, while credit cards offer convenience and potential rewards. BNPL plans can provide flexibility, but it’s important to understand the terms and avoid accumulating high-interest debt. At O1ne Mortgage, we recommend choosing the payment method that best aligns with your financial situation and goals.

How Are Consumers Feeling About Holiday Shopping?

The holiday season evokes a wide range of emotions, and this year is no different. The survey revealed that consumers generally have more positive associations with the season than negative ones. Feelings of gratitude, festiveness, and cheer were more common than anxiety, stress, and panic.

However, many respondents reported a mix of emotions. One person mentioned that they “love holiday shopping, but I have a lot of anxiety about my credit card debt,” while another described the season as “stressful and fun at the same time.” These mixed feelings are understandable, given the financial pressures and social expectations that come with the holidays.

Tips for Managing Holiday Spending

To help you navigate the holiday season without breaking the bank, here are some practical tips:

• Create a Budget: Determine how much you can afford to spend and allocate funds for different categories such as gifts, travel, and entertainment.
• Track Your Spending: Keep a record of your purchases to ensure you stay within your budget.
• Use Cash When Possible: Paying with cash can help you avoid overspending and accumulating debt.
• Take Advantage of Sales: Look for discounts and promotions to save money on your holiday purchases.
• Consider Alternative Gifts: Homemade gifts, such as baked goods or crafts, can be thoughtful and budget-friendly.

At O1ne Mortgage, we understand the importance of financial well-being, especially during the holiday season. If you need assistance with mortgage services or financial planning, give us a call at 213-732-3074. Our team of experts is here to help you make the most of your financial resources and enjoy a stress-free holiday season.

Conclusion

The 2023 holiday season brings a mix of excitement and challenges for consumers. While many are planning to spend and budget for their holiday shopping, others are opting out due to financial constraints. By understanding these trends and implementing smart spending strategies, you can make the most of your holiday season without compromising your financial health.

Remember, O1ne Mortgage is here to support you with all your mortgage needs. Contact us at 213-732-3074 for expert advice and personalized service. Happy holidays!