When it comes to holiday shopping, economic conditions and financial hardships are highly significant factors this year. Especially for younger generations, disposable income is much more scarce than previous years. So how are consumers adapting their spending to the current economic conditions? One way is by planning ahead. It is estimated that 80% of all planned holiday gift spending will be completed before or during Cyber Monday. In fact, around 40% of the total gift spending will be between Thanksgiving and Cyber Monday alone.
Another way that consumers are affording gifts is by simply delaying when the payments are due. Around 67% of parents said they would use Buy Now, Pay Later (BNPL) services for anything from vehicles to clothes and accessories. In fact, 43% of consumers say BNPL will dictate where they shop. Finally, the only other way consumers are purchasing gifts is by cutting back on essentials. Around 82% say they try to forego things like groceries in order to make sure they can afford gifts during the holidays.
Fortunately, there is a better way to preserve wealth and budget for the holidays. With the help of financial advisors, individuals are able to get access to the most recent trends and insights across the market. Best of all, you can access these trends via a webinar or 1-on-1 session, depending on what works best for you. Ultimately, if you want to make sure you can preserve your wealth, taking advantage of financial advisors is the best way to do it.
Source: Equifax