Making a list, and price checking it twice: Most Americans (74%) buying fewer gifts in response to inflation and rising cost of living
Economic snowstorms are burying a majority of Americans (55%), who plan to dig out of the situation by using debt to fund holiday gift purchases.
Chicago, Illinois, November 9, 2023 — A new Ipsos poll conducted on behalf of BMO reveals that three quarters (74%) of Americans admit they will be buying fewer holiday gifts this year in response to inflation and the rising cost of living. Only six percent (6%) plan to increase holiday spending, this year.
The vast majority (82%) of Americans admit that their overall financial situation is causing them at least some degree of anxiety, a figure which is not surprising given the inclement economic conditions facing the country. Indeed, the results of the survey support the contention that the rising cost of living and inflation will impact how most Americans will approach this upcoming holiday season. Almost two in five (38%) say they plan to buy less expensive gifts, closer to one in three (34%) will reduce spending and make fewer big purchases, whereas a little over one in four will cut down on holiday gift lists (26%) or spread-out purchases over several weeks or months (28%), in response to inflation and the rising cost of living.
Of course, few want to miss out on the holidays so the response, by more than half of Americans (55%), is to take on debt to cover holiday gifts. The incidence that plans to do this is up significantly, year-over-year (+3 pts) – with nearly half indicating that they will be using a credit card (46%) followed at a distance by other means such as buy-now-pay-later programs (9%) or a line of credit (3%). On average, Americans expect that it will take about three months to pay off their holiday gifts, with fewer than half feeling like they are capable of freeing themselves from their holiday debts within a calendar month (46%). It seems many Americans know they are not always engaging in financially responsible behaviours, as half (51%) acknowledge that they often spend more money than they should.
Despite getting buried by many economic snowstorms over the past couple of years, almost two-thirds (63%) of Americans are not deterred from planning to give back, during the upcoming holiday season. Americans most commonly plan to give back by contributing money to a cause (35%), volunteering time (23%), and shopping with brands whose values align with theirs (23%). Helping people in need (64%), supporting causes they care about (54%), and teaching their children about the importance of giving (31%) are among the most commonly cited motivations, for giving back. Notably, the youngest demographic (18–24-year-olds) are among the most inclined to give back, during the holiday season.
About the Study
These are the findings of an Ipsos survey conducted on behalf of the BMO. Fieldwork was conducted between September 11 and October 9, 2023. A total of n=2,502 Americans aged 18+ participated in the survey which was fielded via the Ipsos’ panel. Quotas and weighting were used to ensure the sample's composition reflects that of the American population according to census parameters. This survey has a credibility interval of +/- 2.4 per cent 19 times out of 20, of what the results would have been had all American adults 18+ been surveyed.
For more information on this Factum, please contact:
James Cottrill
Senior Account Manager, Ipsos Public Affairs
+1 416 324 2900
[email protected]
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