Strong majority (77%) of Americans plan on modifying their holiday spending this year due to inflation
Chicago, December 19, 2022 – According to the latest BMO Real Financial Progress Index, 77% of Americans say that their holiday spending is being impacted by inflation. Over four in ten (44%) say they are even pushing back or modifying big purchases they were planning on making this year, including 60% of Americans who no longer intend to move forward on buying a car or home.
Americans are resorting to several methods for easing the impact of inflation on their finances, including the following:
- Purchasing fewer expensive gifts (37%)
- Reducing big purchases (30%)
- Spreading purchases over several months (27%)
- Trimming their gift recipient list to save money (29%)
Moreover, 45% say they plan on purchasing gifts using their credit card this year, despite credit card debt being a high source of anxiety for 54% of Americans. Younger generations are more likely to buy now, pay later (BNLP) programs and rely on their saving to pay for holiday gifts this year. Two-thirds (66%) plan to buy, sell or refinance their home next year.
Besides spending during the holidays, 45% of Americans say paying down their debt is one of their financial goals, a significant increase from the previous quarter (39%). Meanwhile, prioritizing retirement savings and vacation funds have slipped: 62% of Americans are saving for retirement , down from 58% this quarter, and saving for vacation dropped from 48% to 43%.
Anxiety around finances remain high
Seven in ten (68%) Americans say they feel less confident in making financial progress, although a significant 9-point decline from this time last year. Eight in ten (83%) Americans say their financial situation is causing them to feel more anxious, particularly around fear of unknown expenses (85%), and family-related expenses (69%), housing costs (68%) and credit card debt (54%). In addition to the top causes of financial anxiety, Americans also report:
- Medical bills are causing 67% of Americans financial anxiety, with those between the ages of 25 and 34 (74%) struggling to pay, up seven points from last quarter.
- Americans aged 55 to 65 (63%) report keeping up with monthly bills is causing them financial anxiety, up 16 points from the previous quarter.
Outlook for 2023
Looking ahead to the new year, over four in ten (44%) Americans say that inflation has impacted their financial resolutions, a sentiment more often felt among Americans aged 25-34 (60%) compared to those over the age of 65 years (21%). Three in ten (31%) say minimizing spending is a top goal, followed by creating a budget (19%).
About the Study
These are some of the findings of an Ipsos poll conducted between October 24 to November 28, 2022, on behalf of BMO Financial Group. A sample of a sample of n=3,402 adults ages 18+ in the United States were collected. Quotas and weighting were used to ensure the sample's composition reflects that of the U.S. population according to census parameters. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within ± 1.9 percentage points, 19 times out of 20, had all Americans aged 18+ been polled. The credibility interval will be wider among subsets of the population. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.
For more information on this news release, please contact:
Sean Simpson
Senior Vice President, Ipsos Public Affairs
Lisa Byers
Account Manager, Ipsos Public Affairs
[email protected]
About Ipsos
Ipsos is the world’s third largest market research company, present in 90 markets and employing more than 18,000 people.
Our passionately curious research professionals, analysts and scientists have built unique multi-specialist capabilities that provide true understanding and powerful insights into the actions, opinions and motivations of citizens, consumers, patients, customers or employees. We serve more than 5000 clients across the world with 75 business solutions.
Founded in France in 1975, Ipsos is listed on the Euronext Paris since July 1st, 1999. The company is part of the SBF 120 and the Mid-60 index and is eligible for the Deferred Settlement Service (SRD).
ISIN code FR0000073298, Reuters ISOS.PA, Bloomberg IPS:FP
