CHERRY HILL, NJ, November 17, 2022 /PRNewswire/ — TD Bank, America’s Most Convenient Bank®, today announced the results of its 2022 Merry Money Survey, which found that consumer concerns about inflation are leading many consumers to take even greater proactive steps to ensure they don’t spend too much during the holiday season. In fact, 57% said they were creating a vacation-specific budget this year due to inflation and rising prices.
TD surveyed more than 1,000 Americans about their shopping, spending and money management habits this holiday season. The survey found that the economic environment weighs heavily on consumers’ minds, with 74% of respondents saying the financial aspect of the holiday season makes them anxious, compared to 66% who said the same in 2021. Despite this, 82% of consumers remain confident in their ability to manage their spending.
“The continued rise in inflation has added an enormous level of anxiety and stress to many Americans, and it’s understandable that this could impact how consumers decide to spend this holiday season compared to the previous years,” said Matt Boss, head of consumer products at TD Bank. “It’s important for consumers to be in control of their finances, not just during the holiday season, but throughout the year. The fundamental practice of having and maintaining an accurate budget can help them gain the confidence to maximize their spending goals and behaviors.”
Budget now, thank you later
Sixty-nine percent of consumers admit they have already spent too much on past holidays, with 45% saying they have spent too much per $300 or more. For many, the pressure to find the right gift for loved ones (36%) and the urge to take advantage of holiday sales (26%) top the list of factors contributing to overspending.
Despite past behaviors, top spenders are aware of their future buying habits. Ninety-two percent said they had considered adjusting their future holiday spending habits to avoid overspending – including spending less on gifts, sticking to a budget, giving fewer loved ones this year and more Again.
Browse payment options
Payments are like gift boxes; one size does not fit all. When asked how they intended to pay for their holiday shopping, more than four in ten consumers (42%) cited debit cards as their primary method of payment, followed by credit cards (33%) .
A whopping 76% of those who use bank or store credit cards also said they do so to earn rewards or cash back on spending. When it comes to paying vacation bills, nearly two-thirds of respondents who use credit cards or personal loans for vacation spending expect to pay 100% of their outstanding balance in January 2023.
“All financial situations require unique approaches that strike the right balance between saving and spending,” Boss said. “For example, for consumers who might be looking to take advantage of incentives and cash back for their holiday purchases, you might choose to use rewards or store credit cards. No matter how you choose to spend, it’s more important to spend within your means and have a plan to manage those expenses responsibly.”
The gift that keeps on giving – healthy financial habits
Beyond the holidays, shoppers are also prioritizing and preparing for success in 2023, including:
- Get a receipt, check it twice: Ninety percent said they review their spending throughout the holiday season, and nearly half of respondents (46%) said they do so every time they make a purchase.
- Get ready instead: Fifty-three percent of consumers said they set aside money throughout the year for holiday expenses by storing money in a separate jar, using a separate bank account, or saving gift cards and rewards points to use while on vacation.
- Collect advice, make it enjoyable: Family is the main source of financial advice (30%) during the holiday season, followed closely by friends at 20%. Fourteen percent of consumers consult online resources and tutorials. If you’re not sure where to start online, get the most out of your merry money with a free tool, like the TD Bank Learning Center. And of course, consumers can also join the 10% of survey respondents who seek advice from financial professionals.
Big Village surveyed 1,006 Americans aged 18 and older who celebrate the holidays. The online survey was conducted October 18-23, 2022.
About Big Village
Big Village, formerly ENGINE, is a full-service global media and marketing services company that enables clients to outperform in the present and win in the future through its wide range of marketing solutions including information, creative, media, data and technology. Founded in 2005, Big Village has its global headquarters in New York and 16 offices in North America, the UK, Europe and Asia-Pacific. Learn more about grand-village.com and follow@wearebigvillage.
About TD Bank, America’s Most Convenient Bank®
TD Bank, America’s Most Convenient Bank, is one of the 10 largest banks in the United States, providing more than 9.8 million customers with a full range of banking products and services for individuals, small businesses and – Atlantic, Metro DC, the Carolinas and Florida. Additionally, TD Auto Finance, a division of TD Bank, NA, provides vehicle finance and business services to dealerships. TD Bank and its subsidiaries also offer personalized private banking and wealth management services through TD Wealth Management.®. TD Bank is headquartered in Cherry Hill, New Jersey To learn more, visit www.td.com/us. Find TD Bank on Facebook at www.facebook.com/TDBank and on Twitter at www.twitter.com/TDBank_US and www.twitter.com/TDNews_US.
TD Bank, America’s Most Convenient Bank, is a member of the TD Bank Group and a subsidiary of The Toronto-Dominion Bank of Toronto, Canadaone of the top 10 financial services companies in North America. The Toronto-Dominion Bank trades on the New York and Toronto exchanges under the symbol “TD”. To learn more, visit www.td.com/us.