FinMasters Survey: Almost 90% of respondents intend to reduce holiday spending to cope with inflation

Challenges ahead for manufacturers and retailers as respondents intend to reduce spending notably on gifts like electronics, jewelry, and watches.

NEW YORK, Oct. 27, 2022 /PRNewswire/ -- A new report from FinMasters reveals that a large majority of Americans are responding to soaring interest rates by slashing holiday spending.

The How Inflation Stole Christmas report, based on a recent survey of 1549 American respondents commissioned by FinMasters, highlights that consumers across all genders, ages and income groups are preparing for scaled-down holiday spending. Respondents earning over $150,000/year plan to trim spending almost as much as those earning under $50,000 per year.

Gifts for family members (cited by 48.81% of respondents) and friends (44.35%) are the most common targets for cutbacks, but substantial numbers of respondents are also cutting spending on decorations, travel, food, and alcohol. Even gifts for children are affected, with 26% of respondents expecting to spend less on the kids.

Retailers and manufacturers of electronics, jewelry, and watches should be concerned, as these are the most commonly cited targets for reduced spending. Toys, sports equipment, cosmetics, and perfumes will also see significant reductions.

These spending cuts are expected to pressure businesses across many industries, especially retailers, which rely on the usual annual holiday spending enthusiasm to meet financial projections.

Key findings

• Gifts for family members are the leading target, cited by 48.81% of respondents.
• Electronics were cited by 42.8% of respondents as a target for cutbacks, with jewelry and watches at 41.45%.
• Respondents over 60 were least likely to say they were reducing spending.
• Spending cuts will also affect Memberships (28.21%), Sports Equipment (27.89%), Cosmetics and Perfumes (30.28%)

About the survey

The survey responses were collected in October 2022, via SurveyMonkey, with a total of 1,549 participants from across the USA. Respondents represent a national sample balanced by census data of age, gender, income level, and region. The survey had a margin of error +/- 4.159% with a 95% confidence level.

About FinMasters.com

FinMasters, a Vertigo Studio brand, is a personal finance platform dedicated to financial education and in-depth research of financial products and services. For more information please visit www.finmasters.com.

SOURCE FinMasters

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