More Americans plan to buy gifts for their pets than in-laws, according to new survey on holiday spending

New survey shows 45% of gifts will be DIY or second-hand as people plan to spend roughly 23% less this holiday season*

Key findings:

• Budget cuts: 60 percent of Americans surveyed say inflation is impacting their holiday shopping choices this year, with the average shopping budget down roughly 23% (approximately $200) this season.
• Prioritizing pets: 34% of Americans will be purchasing a gift for their dog vs. 19% who will be purchasing gifts for their in-laws. 22% of cats will be receiving gifts.
• Baking, crafting and thrifting: Cash or gift cards (77%) and DIY or secondhand items (45%) were the most popular gift categories. Nearly a quarter of Gen Zers (25%) and Millennials (23%) plan to make gifts this year.

GREENWOOD VILLAGE, Colo., Dec. 5, 2022 /PRNewswire/ -- Citing inflation and recession concerns, Americans are trimming their holiday spending and shopping lists during the most wonderful time of the year. But the spirit of giving is still very much alive, especially for our four-legged friends (though there's a chance that dog sweater is second-hand).

A new survey from Personal Capital* conducted in partnership with Morning Consult shows the average holiday shopping budget is down roughly $200 (23%) from last year. In order to afford their December spending, 47% of respondents said they will be cutting back on eating out and other non-essential purchases, an increase of 9% over 2021. Ultimately 37% of people will be spending $250 or less on their gifts this year, with 16% saying they'll ring up less than $100.

Some are turning to crafting, as 45% of respondents will be giving DIY and secondhand gifts (though the most popular category was gift cards at 52%). A quarter of Gen Z and Millennials, more than any other generation, say they'll be making gifts this year.

Those who aren't bargain shopping at the local thrift store are likely logging on to ecommerce sites: 34% of Americans said they will be increasing their online shopping over last year, which is likely why free (79%) and fast shipping (77%) was a bigger factor in selecting a retailer than its environmental impact (18%).

This year Americans will be more selective over who makes their nice list, with some surprising cuts. While only 19% of respondents said they will be purchasing a gift for their in-laws, 34% of dog owners said their dogs will be receiving a present this year. Meanwhile, only 22% of cats can expect presents under the tree. Teachers were the least likely on the list to receive a gift (7%).

Convenient presents such as gift cards (52%), cash (24%) and slippers/socks (24%) reigned supreme as top choices this year. And while 73% said they love finding the perfect gift for someone, nearly a quarter of people (23%) say they end up shopping "mostly for myself." More than half said they enjoy holiday shopping overall, though 35% of people say they'll be making homemade gifts and food this year. 

Across all generations, 31% of Americans are looking to build up their emergency fund in the New Year, and another 27% said they plan to get their finances in order in 2023.

According to Kyle Ryan, Executive Vice President of Advisory Services at Personal Capital, Americans should keep these future goals in mind as they shop for the holidays.

"While you may feel inclined to set January first as a target date to start following a budget, paying attention to where your money is going now will help you feel more confident about your finances and ready to take on any money resolutions you make for the New Year."

Tools such as the Personal Capital Dashboard, where users can link all of their financial accounts in one place, can be a powerful goal-setting resource.

Our dashboard gives you a clear, 360-degree view of your whole financial life – no matter where you keep your money. It can be an immensely valuable tool on your journey in 2023, and beyond.

*Methodology: This survey was conducted by Morning Consult, and commissioned by Personal Capital.  Interviews took place online between November 22nd and November 26th 2022 among a national sample of 2,200 adults.  The sample was filtered by age and gender, and weighted on region, race/ethnicity and educational attainment, to reflect the national census.  Results from the full survey have a margin of error of plus or minus 2 percentage points.

The content contained in this release is intended for general informational purposes only and is not meant to constitute legal, tax, accounting or investment advice. You should consult a qualified legal or tax professional regarding your specific situation. Keep in mind that investing involves risk. The value of your investment will fluctuate over time and you may gain or lose money.

Any reference to the advisory services refers to Personal Capital Advisors Corporation ("PCAC"). Advisory services are offered for a fee by PCAC, a registered investment adviser with the Securities and Exchange Commission. Registration does not imply a certain level of skill or training. Investing involves risk. Past performance is not indicative of future returns. You may lose money. The information contained herein is being provided for discussion purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy or sell securities. All visuals are illustrative only. PCAC is a wholly owned subsidiary of Personal Capital Corporation ("PCC"), an Empower company. PCC is a wholly owned subsidiary of Empower Holdings, LLC. © 2022 Personal Capital Corporation. All rights reserved.

Personal Capital is a remote-delivery, industry-leading digital wealth management company that helps people transform their financial lives through technology and advisory services. The company's state-of-the-art tools and technology provides consumers with a holistic financial picture and are used by over 2.9 million people to track $1.2 trillion in account assets (as of 4/30/21). Its wealth management advisors provide expert guidance, and customized strategies, based on a personal understanding of an investor's financial picture and goals. For more information, please visit www.personalcapital.com or connect on Facebook, Twitter or LinkedIn.

Contact: Stephanie Visscher, Senior Manager, Content and Communications
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SOURCE Personal Capital, an Empower Company