Financial Strain Dampens Holiday Cheer for Many Americans; Thrivent Survey Finds

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Oct 24, 2024, 07:35 ET

When it comes to holiday spending, Americans are grappling with rising prices, living paycheck to paycheck and the outsized influence of social media

MINNEAPOLIS, Oct. 24, 2024 /PRNewswire/ -- A new survey from Thrivent finds 2 out of every 3 Americans have concerns about how they'll manage their holiday finances this year, including 27% of people who are 'very concerned.' This may explain why Americans plan to shift their holiday spending habits in 2024. Given the current economy, 33% are planning to purchase less expensive gifts and 31% are planning to buy fewer gifts overall, according to Thrivent's 2024 Holiday Spending Survey.

"The holidays may be the most wonderful time of the year, but this festive season has Americans on edge," said Thrivent Wealth Advisor Clint Jasperson. "Our Holiday Spending Survey shows rising costs, tighter budgets and a lack of financial planning may be the real grinches this year."

Thrivent's survey identified the biggest factors behind people's financial concerns for the holiday season: living paycheck to paycheck and the increased cost of goods and services. It also underscored how social media is influencing people's financial decisions more than ever before.

The Cost of Cheer: Increased prices are Americans' biggest concern, with more than half (55%) saying they're worried about rising costs. Boomers (61%) and Gen X (58%) are more concerned than Millennials (51%) and Gen Z (48%).
Tight Budgets, Tighter Holidays: Nearly half of Americans (46%) say they're living paycheck to paycheck and don't have much or any disposable income to spend on the holidays this year.
A Planning Problem: Despite their financial concerns, among Americans who typically overspend during the holidays, only 20% believe following a financial plan will help them rein in their spending. Overall, 35% of Americans reveal they're not seeking financial advice from anywhere to help them plan their spending.
Social Media's Shopping Surge: Social media significantly shapes holiday spending, with 27% of Americans saying it influences their holiday purchase decisions, notably outpacing both TV ads (24%) and print ads (15%). Of those who say social media influences their purchases, 64% turn to social media for shopping inspiration either daily (27%) or weekly (36%).
Generational Jingle: Gen Z and Millennials (both 35%) are more likely to be influenced by social media than Gen X (29%) and Boomers (11%).

Jasperson added, "When you plan ahead for the holidays, even a little change can make a big difference. Working with a financial advisor can help you identify your goals, plan what you need to achieve them during the holidays and beyond and feel more secure in an uncertain economy."

Here are three tips from Thrivent on how to navigate finances during the holidays:

Build a Budget: With higher prices as a reality, people should create a spending strategy tailored to their current financial situation. Reflect on what matters most—whether it's donations, gifts or shared experiences like a holiday outing with family. From there, establish a budget and leave enough room to cover necessary expenses without dipping into emergency savings or increasing debt.
Tis the Season to Talk Finances: Shoppers should set clear expectations for their holiday budget and communicate with loved ones about what they can realistically spend. It's easy to overspend in the excitement of the season, but staying within one's means is an important part of protecting their long-term financial goals. If cutting back is necessary, suggest a gift exchange or set a spending cap. Consider experiences like family dinners as an alternative to gifts, which create lasting memories without the financial stress.
Keep Social Media in Check: Social media can be a double-edged sword when it comes to holiday spending. While these platforms offer inspiration, they may also lead to impulsive purchases or comparisons. To stay focused on financial goals, consider taking a digital detox by unsubscribing from retail emails, deleting shopping apps or moderating social media usage. This can help reduce the temptation to buy more based on trends or social pressure.

Survey Methodology
Thrivent's 2024 Holiday Spending Study was fielded online by Morning Consult from 9/13/24 through 9/22/24 among a total sample of n=2180 adults 18+ (weighted to U.S. general population on key demographic aspects such as gender, age, etc.) with a total audience margin of error of +/-2%. In addition to general population, oversamples of the following MSAs were fielded and weighted to their respective demographic make-up: Atlanta (N=990; MoE +/- 3%), Chicago (N=992; MoE +/- 3%), Houston (N=990; MoE +/- 3%), Los Angeles (N=991; MoE +/- 3%), Minneapolis (N=998; MoE +/- 3%). Some questions for this survey were shown to a sub-set of respondents, thus base sizes and margin of error may vary by question.

About Thrivent
Thrivent is a diversified financial services organization that helps people achieve financial clarity, enabling lives full of meaning and gratitude. Thrivent and its subsidiary and affiliate companies serve more than 2.4 million clients, offering advice, insurance, investments, banking and generosity products and programs online and through financial advisors and independent agents nationwide. Thrivent is a Fortune 500 company with $179 billion in assets under management/advisement (as of 12/31/23). Thrivent carries ratings from independent rating agencies which demonstrate the strength and stability of the organization, including an A++ rating from AM Best; an Aa2 rating from Moody's Investors Service; and an AA+ rating from S&P Global Ratings. Ratings are based on Thrivent's financial strength and claims-paying ability, but do not apply to investment product performance. For information on these ratings, visit the rating agency's website. Dividends are not guaranteed. For more information about Thrivent, visit Thrivent.com or find us on Facebook, Instagram and LinkedIn.

About Morning Consult 
Morning Consult is a global decision intelligence company changing how modern leaders make smarter, faster, better decisions. The company pairs its proprietary high-frequency data with applied artificial intelligence to better inform decisions on what people think and how they will act. For more information, please visit morningconsult.com.

SOURCE Thrivent