CHARLOTTE, N.C., Dec. 3, 2019 /PRNewswire/ -- It may be the most
wonderful time of the year, but it's also the most expensive, which
puts a damper on the season for most Americans. LendingTree's 2019
Holiday Spending Survey found that 61% of Americans are dreading
the holidays due to the extra spending and financial burden the
season brings, causing loss of sleep, anxiety, and added debt.
Key Findings:
- 61% of Americans are dreading the winter holidays due to
spending, with 57% dreading Christmas specifically.
- A typical consumer will spend an average of $602.65 on winter holiday gifts this year.
That number skyrockets to $850.38
among parents with children under 18.
- 1 in 3 are losing sleep worrying about how they'll pay for
the winter holidays, including about half of millennials and
parents of kids under 18.
- Millennials are experiencing more pressure than other
generations, with 71% feeling obligated to purchase gifts this
holiday season. Nearly 1 in 2 millennials said they want to give
the "best" presents.
- Parents are worried about disappointing their kids.
Three in 4 parents of children under 18 feel pressured to spend on
holiday gifts. While many indicated they're trying to spend less
than last year, 69% say their kids won't be happy with that
decision.
- About a quarter of respondents expect to incur debt this
holiday season, and nearly 1 in 5 are still paying off bills from
last year's holidays. Millennials and parents of children under
18 are most likely to struggle repaying holiday debt one year
later. Further, about 40% of them think they'll take on more debt
this year.
Gift-Giving Guilt
Seventy-six percent of survey
respondents said they feel pressure to buy gifts for their
family. Unfortunately, these feelings could be leading to poor
financial decisions: one in five say they're still paying off bills
from last year's holiday season. And, overspending doesn't appear
to be slowing down this year either as 25% of respondents say they
expect to go into debt because of holiday spending.
But pressure to buy gifts for friends, family and even
co-workers isn't the only reason Americans will be spending big
this year. A third of survey respondents said they feel competitive
about gift giving and want to give the best presents. Men are more
competitive over gift-giving, with 42% of them reporting wanting to
give the best present compared with just 25% of women. Similarly,
millennials are also intent on giving the best gifts. Almost half
of millennials surveyed want to give the "best" presents.
Parent Pressure
The majority (69%) of parents with children under the age of 18 are
worried about disappointing their children this holiday season, and
a whopping 75% of parents report feeling pressured to buy gifts. On
top of the emotional stress, more than half of parents surveyed
report losing sleep over holiday spending worries. And 30% of
parents with minors are still paying off debt from last winter.
Generational Differences
Millennials are feeling the stress of the holiday season more so
than other generations, especially when it comes to spending:
- 71% of millennials feel pressured to purchase gifts
- 36% expect to go into debt
- 50% are losing sleep over holiday spending worries
- 29% are still paying off debt from last holiday season
Millennials topped each category, likely due to growing families
and more financial responsibilities. On the flip side, financial
stress surrounding holiday spending dipped significantly for Gen X
— and even more so for Baby Boomers.
Avoiding Overspending
The survey found that
nearly three-quarters of Americans have some type of rule related
to holiday spending:
- 26% reported spending specific amounts on each person
- 20% cut out spending entirely by having a "no present" rule
with certain groups
In order to avoid, or to counteract, overspending during the
holidays, many reported taking the following actions:
- 31% are giving up items for themselves
- 19% are saving less
- 15% are giving up a vacation
- 9% are ignoring debt obligations
- 9% are putting off home repairs
- 8% are forgoing a major purchase
Avoiding Holiday Debt
- Stick to a Budget: The desire to overspend may be tempting, and
17% of respondents reporting spending more on those closest
to them to show they care. But with a good understanding of income,
expenses and realistic spending expectations, setting a budget and
sticking to it can help reduce the amount of debt being carried
into the new year.
- Be honest with loved ones: Chances are, a request to scale back
on gifts and spending would be a welcomed relief to family and
friends.
- Get creative: Those surveyed had some creative solutions to
curb holiday spending Secret Santa gift exchanges (18%), making
presents instead of buying them (8%) and white elephant gift
exchanges (8%), which might add more excitement to the
season.
- Choose quality, not quantity: When it comes to picking out
gifts, half of those surveyed said that quality is more
important than quantity. Buying less will save you money, time and
stress.
Methodology
LendingTree commissioned Qualtrics to
conduct an online survey of 1,248 Americans, with the sample base
proportioned to represent the overall population. The survey was
fielded Oct. 15-17, 2019.
For the full findings, please visit
https://www.lendingtree.com/debt-consolidation/study-holiday-spending/
About LendingTree
LendingTree (NASDAQ: TREE) is the
nation's leading online marketplace that connects consumers with
the choices they need to be confident in their financial decisions.
LendingTree empowers consumers to shop for financial services the
same way they would shop for airline tickets or hotel stays,
comparing multiple offers from a nationwide network of over 500
partners in one simple search, and can choose the option that best
fits their financial needs. Services include mortgage loans,
mortgage refinances, auto loans, personal loans, business loans,
student refinances, credit cards and more. Through the My
LendingTree platform, consumers receive free credit scores, credit
monitoring and recommendations to improve credit health. My
LendingTree proactively compares consumers' credit accounts against
offers on our network, and notifies consumers when there is an
opportunity to save money. In short, LendingTree's purpose is to
help simplify financial decisions for life's meaningful moments
through choice, education and support. LendingTree, LLC is a
subsidiary of LendingTree, Inc. For more information, go to
www.lendingtree.com, dial 800-555-TREE, like our Facebook page
and/or follow us on Twitter @LendingTree.
MEDIA CONTACT:
Megan Greuling
Megan.greuling@lendingtree.com
704-943-8208
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SOURCE LendingTree