M1's 2023 Shopping & Saving Survey Highlights Where Consumers Are Spending More (or Less) This Holiday Season

From shifting travel plans to luxury purchase cuts, M1 looks ahead to consumer impact as the economy continues its path of uncertainty

CHICAGO, Dec. 13, 2023 /PRNewswire/ -- M1, the acclaimed investing platform that allows users to invest, borrow, spend, and earn all in one place, today released findings from its 2023 holiday shopping and saving survey, which features insights from nearly 700 M1 users. The findings provide a comprehensive look into the significant shifts happening among some consumer spending patterns, reflecting the ongoing impact of inflation and rising costs during the 2023 holiday season.

As the December holidays quickly approach, many are rethinking their holiday spending habits in the wake of rising costs of many everyday items. Recent results from the U.S. Bureau of Labor Statistics' Consumer Price Index Summary showed the food at home index, or how much will be spent on grocery items, increased 2.1% over the past year. The cost of shelter is up an average of 6.7%, and transportation services costs are up 9.2%.

With that in mind, many American shoppers in M1's survey expressed changing strategies this holiday season. The top findings include:

• Inflation dampens travel plans. Despite slowing, inflation and high costs of travel continue to be a problem for some Americans. 20% of survey respondents said they would be spending less on their holiday travel plans this year compared to 2022, with 7% ditching holiday travel plans altogether, citing inflation and rising costs as their primary reason. 10% of those who said they'll be spending less on travel are opting for train or car travel as opposed to air travel, and 15% plan to rely on free activities.
• Luxury takes a back seat while essential spending rises. 43% of respondents plan to spend less on luxury purchases like jewelry, clothes, and spa purchases this holiday season, while 30% are cutting back on their restaurants and dining spend. While luxury items may stall this year, 30% of people say they will still spend more on everyday necessities like food and personal care items this holiday season.
• Tis the season to save: For those cutting back on their typical gifting spend this year for friends, family, coworkers, etc., 19% are reallocating those funds to investments and 13% to savings accounts. Just 7% of respondents reported that they'd be reallocating these saved funds toward vacations, experiences, or larger purchases like homes or cars. 10% of respondents are making less income than 2023, so they do not have additional funds to reallocate.
• Money talks: Traditional savings bonds are a thing of the past – just 4% of respondents say they've gifted them before. But 48% of respondents plan to give cash this holiday season, with 10% planning to give contributions to a child's 529 plan, and 8% planning to give gold, silver, or another precious metal. Only 4% plan to give cryptocurrency or NFTs as a gift.

Brian Barnes, Founder and CEO of M1, says, "As we head into the new year, this new data reflects a shift towards more conservative money behavior as consumers navigate the challenges that come with inflation and rising costs this holiday season. By understanding these evolving spending patterns, we can help individuals make informed financial decisions, ultimately building their wealth."

About M1
M1 is a self-directed wealth-building platform that helps people build their assets, spend effectively, and borrow all in one place. With over $7 billion in assets under management, as of August 2023, M1 provides control and automation to hundreds of thousands of people through investing, digital checking, portfolio lines of credit, and a unique credit card. M1 was named one of Chicago's fastest-growing companies in 2023. Learn more at www.m1.com.

M1 is a technology company offering a range of financial products and services. "M1" refers to M1 Holdings Inc., and its wholly-owned, separate affiliates M1 Finance LLC, M1 Spend LLC, and M1 Digital LLC.

This piece reflects the opinions of the authors who are associated persons of M1 and may not reflect the views of M1. They are for informational purposes only and are not a recommendation of an investment strategy or to buy or sell any security in any account. Prior to making any investment decision, you are encouraged to consult your personal investment, legal, and tax advisors. Any third-party information provided therein does not reflect the views of M1.

All investments involve risk including the loss of principal and past performance does not guarantee future results. Brokerage products and services offered by M1 Finance LLC, Member FINRA / SIPC.

20231207-3263658-10384956

SOURCE M1

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED