Most People Feel the Pressure to Overspend During the Holidays
Tis the season for spending and 63% of adults say they feel the pressure to overspend on either charity, social gatherings, travel or gifts during the holidays, according to a new Bankrate.com report.
Data analyst Adrian Garcia said holiday gifts are the big one with 51% saying they really feel the pressure to spend on that category. One third of those who travel during the holidays feel the need to overspend on expenses such as airline tickets, gas and lodging.
In order to save money, more than 41% of gift givers say they are willing to resort to certain gift-giving taboos: 24% said they will regift and 19% said they would buy used or secondhand items to cut costs.
About 53% said they would brave the stores on Black Friday or log onto retail sites on Cyber Monday to grab great deals. Garcia said they would actively seek out coupons and sales at the stores. Another money-saving option found in the survey was limiting gifts to immediate family.
But what was interesting is that 16%, or 38 million Americans, said would be willing to skip gift giving all together. Instead, they may choose to save money and take a family vacation later in the year. Older adults sometimes don’t need anything and would rather take that money and give it to a charity instead.
Garcia said there is a lot of pressure to overspend this time of year.
“Sometimes we are trying to outdo ourselves or show with a physical object how much we love someone. There’s also this pressure coming from commercials or social media to get our loved ones the new iPhone 11 or a car with a bow on it,” said Garcia.
Parents with children under age 18 are more likely to feel the burn during the holiday season, said Garcia. About 71% of gift-giving parents have spent more money than they are comfortable with for holiday presents.
Garcia suggested before buying gifts, look at the budget one has allotted for gifts and stay within that budget. Period. Figure out what money is being spent on gifts, travel and charities. If it proves to be too much, maybe do a Secret Santa gift exchange instead and limit the gift list.