- 42 percent of households making less than $50,000 annually plan to decrease holiday spending. This compares to 40 percent of households earning $50,000 to $75,000 annually and 37 percent of households earning $75,000 to $150,000 annually.
- Notably, three in ten (28 percent) Americans in the highest income bracket ($150,000 annually or more) plan to decrease the amount they spend this holiday season.
“With the unemployment rate still above 9 percent, many families continue to throttle back their spending,” said Jonathan Clements, Director of Financial Education, Citi Personal Wealth Management. “Sixteen months into what we’re told is economic recovery, Americans are rediscovering financial prudence. This means Americans want to spend smarter this holiday season by hunting for bargains, making homemade gifts and finding unique ways to give back.”
Holiday Trimming: Nearly Half Reducing Cost of Gifts; More than a Third the Gift List
Nearly half of Americans (48 percent) believe they almost certainly (18 percent) or very likely (30 percent) will cut back on the cost of gifts they give this year.
- One in five (19 percent) plan to spend under $200 this year.
- 24 percent plan to spend $200 to $499; 21 percent plan to spend $500 to $999; and one in four (23 percent) plan to spend more than $1000.
More than a third (37 percent) plan to cut back on the number of people they give gifts to this year and are finding creative ways to save money.
- Just over one in four (27 percent) believe they will give homemade gifts.
- More than a third (35 percent) of Americans say it is likely they will volunteer as a family.
"If Americans this year have truly decided that it's the thought that really counts, then Black Friday, typically the kickoff to the holiday shopping season, could prove to be especially bleak,” added Clements.
Southerners Planning to Spend Most; Midwesterners Least Likely to Trim Their Gifting
While Americans face another holiday season in a sluggish economy, the South and the Midwest stand out as two regions determined to maintain their holiday cheer.
- According to the survey, Southerners plan to spend an average of $987 on holiday shopping, the most of any region. This compares to $917 for the Northeast; $900 for the Midwest and $778 for the West.
- Only 39 percent of Midwesterners are likely to cut back on the cost of holiday gifts. This compares to 45 percent of Northeasterners, 47 percent of Westerners, and 51 percent of Southerners.
- Midwesterners are also least likely to cut back on the number of people they give gifts to (28 percent), compared with 35 percent of Westerners, 37 percent of Northeasterners, and 41 percent of Southerners.
Majority of Americans Will Be Home for the Holidays
For Americans, cutting back on holiday spending also means staying home for the holidays. In fact, a full 78 percent of Americans do not plan on traveling for the holidays this year.
- 10 percent plan to travel within a day’s drive but simply stay overnight with family.
- 8 percent plan to travel to another part of the country
- Only 2 percent plan to travel internationally
