(NewsNation) — Consumer spending is expected to hit a record this holiday season but according to a recent survey, most Americans are stressed about affording gifts.
U.S. News and World Report found that 68% of Americans are worried about having enough money to pay for gifts this year — nearly 50% are a “little” worried and roughly 20% are “very” worried.
The widespread uneasiness comes despite the fact inflation has slowed over the past year — a sign the cumulative effect of higher prices continues to squeeze families.
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Of the 1,200 consumers surveyed, 44% of shoppers plan to keep holiday spending below $500, up from 33% who said the same a year ago, according to U.S. News and World Report.
Another concerning sign: 65% of respondents felt like they were living paycheck to paycheck compared to 53% last year. Most of those surveyed said they’re feeling grocery prices the most.
But Americans seem poised to continue spending, even if it means racking up credit card debt. Multiple reports are projecting a strong holiday season for retailers.
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A new Gallup poll found shoppers plan to spend $1,012 on holiday gifts this year, up from $975 last year. The share of people who plan to cut back their spending has also dropped and is now at its lowest level since 2019.
The National Retail Federation expects holiday spending to hit a record $902 per person — $27 more per person than the year prior. The NRF said a record 183.4 million people are planning to shop in-store and online during the Thanksgiving holiday weekend.
“It’s not only a great time to find sales and deals but for a lot of people it’s also about that tradition,” Katherine Cullen, vice president of industry and consumer insights at the NRF, told NewsNation on Friday.
E-commerce has already seen a boost. According to Adobe Analytics, consumers spent more than $77.4 billion online between Nov. 1-24, a 10% increase from the previous year.
However, the season of generosity can also lead to pressure, pushing families to spend beyond their means.
Nearly half of Americans feel the most stressed about their finances around the holidays, and this year, about a third of consumers are heading into the shopping season with more than $5,000 in debt, according to a recent CreditKarma report.
Experts recommend these five tips to stay on track with your finances this year.
