TD Bank Survey: Holiday Shoppers Plan to Trim Spending & Avoid Overspending This Year

TD Bank has announced the findings of its 2024 Merry Money Survey, which reveals that more than half (52%) of respondents are scaling back their spending due to recession anxieties, and more than four out of every ten (42%) are weighing their holiday spending behavior based on the impact from this election.

Despite these concerns, 79% of consumers still feel confident in their ability to manage their holiday spending, with 64% indicating that they plan to spend less than $600 in total on gifts.

TD polled more than 2,000 U.S. consumers about their shopping and overall money management habits ahead of the holiday season.

The survey found that shoppers are seeking out special deals this year, with 82% indicating that they are actively looking for offers and price reductions for their shopping.

Though interest rates and inflation are trending down, shoppers are still getting strategic with their spending and taking advantage of seasonal deals. In fact, more than half (55%) of respondents planned to make the bulk of their purchases on November’s Black Friday.

To further combat overspending, 81% of respondents have considered ways to keep their budgets in line.

Some shoppers are spending less this season, with one-third (33%) of respondents indicating that they are reducing their gift spending compared to previous years.

As another way to avoid overspending, 22% are setting aside extra money in advance of the holidays. Additionally, 61% of people are cutting back on other discretionary spending, such as dining out, in preparation for holiday budgets.

When it comes to holiday shopping, consumers are prioritizing both rewards and security in their payment choices. Debit cards still lead the way, with 42% of shoppers choosing them as their preferred method of payment.

Credit cards follow closely at 34%, with many consumers drawn to the perks they offer and 69% of those who prefer credit cards citing rewards or cash back as the primary reason for their choice.

Additionally, 31% of credit card users say the enhanced protections provided by credit cards, such as fraud prevention and purchase protection, are key factors in their decision. Meanwhile, 18% of respondents still prefer cash or checks for their holiday spending.

Most consumers (86%) who have overspent during past holidays have considered adjusting their future holiday spending habits to avoid overspending.

Additionally, 62% of credit card users plan to pay off their holiday shopping balances in full by January 2025.

This shows that many consumers have a proactive approach to financial management, with many seeking out deals and being thoughtful about their spending habits.

Even in the face of high gift prices, shoppers are determined to enjoy the season while keeping their finances in check.