CHERRY HILL, N.J., Nov. 17, 2021 /PRNewswire/ -- TD Bank, America's
Most Convenient Bank®, announced today that while the
holidays are often thought of as "the most wonderful time of the
year," not everyone is excited to break out their holiday
decorations just yet. According to TD Bank's 2021 Merry Money
Survey, more than half of Americans (52%) describe the holiday
shopping experience as painful. Of this group, 33% actually equate
the pain of holiday shopping to a root canal.
TD Bank polled 1,004 U.S. consumers to gauge their shopping,
spending, money management habits and overall sentiment during the
holiday season. The survey found that while Americans are
increasingly responsible with their holiday spending, with 73%
creating a budget – up from 66% in 2018 – two-thirds (66%) of
consumers say the financial aspect of the holiday season makes them
anxious.
There's no place like home for the holidays
Perry Como was onto something:
there really is no place like home for the holidays. In addition to
making Americans more budget-conscious, the pandemic also changed
how people feel about the holidays. The survey finds that 84% of
Americans felt like celebrating the holidays during the pandemic
was more about the time spent with loved ones versus spending money
on gifts.
While many are excited to resume in-person events this year, 56%
of Americans admit they liked having the excuse the pandemic
provided of not having to attend holiday gatherings in recent
years. This year, most Americans are looking forward to more
intimate celebrations, with 83% preferring small family gatherings.
In fact, more than half (52%) wish they didn't have to travel as
much during the holidays and another 52% wish they didn't have as
many obligations.
On Dasher, on Dancer, on Fido and Mittens
Americans are also thinking of their four-legged family members
this holiday season. Sixty-three percent of Americans plan to buy
gifts for their pets this year, especially millennials (76%). In
fact, 14% of millennials plan to spend more than $100 on each of their pets, making sure to
include their furry friends in their holiday celebrations.
The most stressful time of the year
Feelings of anxiety when budgeting for the holidays are
especially prominent among younger shoppers, with 79% of
millennials saying that holiday shopping makes them anxious, more
so than their Gen X (68%) and Baby Boomer (51%) counterparts.
Previous spending mishaps may be responsible for the stress
experienced during the holidays. According to the survey, 69% of
Americans say they have previously overspent during the holidays
and 41% say they experienced a negative financial situation because
of holiday spending. An additional 31% have tapped into emergency
savings to pay for holiday expenses.
"As people prepare to celebrate the holidays with their loved
ones, perhaps for the first time in-person since the pandemic
began, there are still many things weighing on their minds," says
Matt Boss, Head of Consumer Products
at TD Bank. "Holiday shopping, travel, hosting and celebrations all
have costs associated – and due to supply chain issues, we're
seeing cost increases that will make joining in even more of a
challenge for some. Doing what's best for you could mean staying
home from travel or scaling back on gift-giving, but it will help
make the holiday season more enjoyable. Set your limits – whether
financial or personal – and stick to them."
Ho-Ho-Hold up
While the holidays can bring pressure to spend, consumers need
to stop and evaluate what makes financial sense for them. There are
several steps shoppers can take to ensure they are prepared to shop
smartly and avoid overspending:
- Don't just make a budget – stick to it: Of
Americans who create a holiday budget, more than a quarter (27%)
don't stick to it. What's more, only 31% of consumers strongly
agree that they feel confident in their ability to create an
effective budget for holiday spending. When creating a budget,
shoppers should use the tools and resources they find most helpful.
A physical planner or notebook was the most common tool cited for
budgeting (41%), while others may find digital tools and
applications linked to bank accounts useful for staying on
track.
- If you're using plastic – maximize those rewards:
Forty-two percent of Americans cite using a debit card for most of
their holiday spending. While shoppers should use the payment
method that works best for their financial situation, using
rewards-based credit cards can help shoppers earn cash back or
points as they spend.
- Start early: Amid supply chain challenges impacting
delivery times and store inventory, 63% of Americans say they'll
start their shopping earlier to avoid delays. In fact, 60% say they
will shop two months in advance of the holidays. Many consumers
start saving early, too – with 63% setting aside money throughout
the year for holiday spending by stashing cash in jars, saving gift
cards or reward points, or using a separate account.
"Consumers who are spending this year are looking for a deal –
90% of millennials surveyed are planning to shop on Black Friday,"
Boss adds. "However, more than a quarter of consumers say these
sales are the primary reason they overspend, which signifies the
importance of not only creating a holiday budget, but also using
tools that track spending and help eliminate impulse purchases, no
matter how irresistible the deal."
Methodology
Engine surveyed 1,004 Americans 18 years of age and older who
celebrate the holidays. The online survey was conducted
Oct. 26-28, 2021.
About Engine
ENGINE is a global, full-service media and marketing
services company that empowers clients to outperform in the present
and win in the future with its vast range of marketing solutions
including insights, creative, media, data and
technology. Founded in 2005, ENGINE has global headquarters
in New York and 16 offices across North America, the UK,
Europe and Asia-Pacific. Find out more
at enginegroup.com and follow @engineworldwide.
About TD Bank, America's Most Convenient
Bank®
TD Bank, America's Most Convenient Bank, is one of the 10
largest banks in the U.S., providing more than 9.6 million
customers with a full range of retail, small business and
commercial banking products and services at more than 1,100
convenient locations throughout the Northeast, Mid-Atlantic, Metro
D.C., the Carolinas and Florida.
In addition, TD Bank and its subsidiaries offer customized private
banking and wealth management services through TD
Wealth®, and vehicle financing and dealer commercial
services through TD Auto Finance. TD Bank is headquartered in
Cherry Hill, N.J. 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 TD Bank
Group and a subsidiary of The Toronto-Dominion Bank of Toronto, Canada, a top 10 financial services
company in North America. The
Toronto-Dominion Bank trades on the New
York and Toronto stock
exchanges under the ticker symbol "TD". To learn more, visit
www.td.com/us.
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SOURCE TD Bank