While Black Friday and Cyber Monday saw huge increases in sales compared to 2010, another poll found that Americans planning to spend less this holiday season outnumber those who plan to spend more four to one. The November Financial Security Index poll found that 42 percent of Americans plan to spend less this holiday season compared to last year. Only ten percent of Americans plan to spend more.
The poll found that 13 percent of Americans feel more secure in their jobs than they did this time last year. “Throughout 2011, we have observed that consumers are worried about their savings, job security, debt and net worth, and that trend has accelerated during the second half of the year,” said Greg McBride, CFA, senior financial analyst for Bankrate.com in a news release. “While consumers indicate a reluctance to spend more this holiday season, there is a notorious disconnect between how consumers feel and how consumers act, particularly regarding spending.”
Experts say to limit overspending during the holidays it’s important to think of the costs of entertaining, giving and celebrating. If you spend too much at the start of the holiday season you may not have as much to spare when Christmas comes around. “When thinking about holiday spending, most people typically fast-forward to December’s big budget busting holidays,” said Kim McGrigg, MMI’s personal finance blogger. “However, it pays to think thrifty all season long—starting with Thanksgiving. While a turkey alone might not tip your financial scale, the cost of entertaining and holiday travel can really add up.”
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