CHERRY
HILL, N.J., Nov. 17,
2022 /PRNewswire/ -- TD Bank, America's Most
Convenient Bank®, announced today the results of its
2022 Merry Money Survey, which found that consumers' concerns
around inflation are driving many to take even greater proactive
steps to ensure they don't overspend this holiday season. In fact,
57% said they are creating a holiday-specific budget this year as a
result of inflation and rising prices.
TD polled 1,000+ Americans about their shopping, spending and
money management habits during the holiday season. The survey found
that the economic environment is weighing heavily on consumers'
minds, with 74% of respondents saying the financial aspect of the
holiday season makes them anxious, compared to 66% who said the
same in 2021. Despite this, 82% of consumers remain confident in
their ability to manage their spending.
"The continuing rise of inflation has added a tremendous level
of anxiety and stress to many Americans, and it's understandable
that this could impact how consumers decide to spend this holiday
season compared to previous years," said Matt Boss, Head of Consumer Products at TD Bank.
"It's important that consumers are in control of their finances,
not only during the holiday season, but year-round. The fundamental
practice of having and maintaining an accurate budget can help them
gain the confidence to maximize their spending goals and
behaviors."
Budget now, thank yourself later
Sixty-nine percent of consumers admit they have previously
overspent during past holidays, of which 45% said they overspent by
$300 or more. For many, the pressure
to find the right gift for loved ones (36%) and the impulse to take
advantage of holiday sales (26%) topped the list of contributing
factors in overspending.
Despite past behaviors, over spenders are conscious of their
future shopping habits. Ninety-two percent said they have
considered adjusting their future holiday spending habits to avoid
overspending – including spending less on gifts, sticking to a
budget, gifting to fewer loved ones this year and more.
Dashing through the payment options
Payments are like gift boxes; one size doesn't fit all. When
asked how they intend to pay for holiday purchases, more than four
in ten consumers (42%) cited debit cards as their primary payment
method, followed by credit cards (33%).
A whopping 76% of those using bank or store credit cards also
noted that they do so to earn rewards or cash back on their
spending. When it comes to paying off holiday bills, nearly
two-thirds of respondents who use credit cards or personal loans
for holiday spending expect to pay 100% of their outstanding
balance in January 2023.
"All financial situations require unique approaches that strike
the right balance between saving and spending," said Boss. "For
example, for those consumers who might be looking to take advantage
of incentives and cash back for their holiday purchases, you might
elect to use rewards or store credit cards. No matter how you
choose to spend, it's more important to spend within your means and
have a plan to responsibly manage those expenses."
The gift that keeps on giving – healthy financial
habits
Beyond the holidays, shoppers are also prioritizing and
setting themselves up for success in 2023, including:
- Getting a receipt, checking it twice: Ninety percent
said they review their spending throughout the holiday season, and
nearly half of respondents (46%) said they do it every time they
make a purchase.
- Prepping ahead instead: Fifty-three percent of consumers
said they set aside cash throughout the year for holiday spending
by stashing money in a separate jar, utilizing a separate bank
account or saving gift cards and reward points for use during the
holidays.
- Gathering advice, making it nice: Family is the top
source for financial advice (30%) during the holiday season, with
friends following closely at 20%. Fourteen percent of consumers
look to online resources and tutorials. If you're not sure where to
start online, make the most of your merry money with a free tool,
like TD Bank Learning Center. And of course, consumers can also
join the 10% of survey respondents who seek advice from financial
professionals.
Methodology
Big Village surveyed 1,006 Americans 18
years of age and older who celebrate the holidays. The online
survey was conducted October 18-23,
2022.
About Big Village
Big Village, formerly ENGINE, is a
global, full-service media and marketing services company that
empowers clients to outperform in the present and win in the future
with its vast range of marketing solutions including insights,
creative, media, data, and technology. Founded in 2005, Big Village
has global headquarters in New York and 16 offices across North
America, the UK, Europe, and Asia-Pacific. Find out more
at big-village.com and follow @wearebigvillage.
About TD Bank, America's Most Convenient
Bank®
TD Bank, America's Most Convenient Bank, is one of the 10 largest
banks in the U.S., providing over 9.8 million customers with a full
range of retail, small business and commercial banking products and
services at more than 1,100 convenient locations throughout the
Northeast, Mid-Atlantic, Metro D.C., the Carolinas and Florida. In addition, TD Auto Finance, a
division of TD Bank, N.A., offers vehicle financing and dealer
commercial services. TD Bank and its subsidiaries also offer
customized private banking and wealth management services through
TD Wealth®. TD Bank is headquartered in Cherry Hill, N.J. To learn more, visit
www.td.com/us. Find TD Bank on Facebook at www.facebook.com/TDBank
and on Twitter
at www.twitter.com/TDBank_US and www.twitter.com/TDNews_US.
TD Bank, America's Most Convenient Bank, is a member of TD Bank
Group and a subsidiary of The Toronto-Dominion Bank of Toronto, Canada, a top 10 financial services
company in North America. The
Toronto-Dominion Bank trades on the New
York and Toronto stock
exchanges under the ticker symbol "TD". To learn more,
visit www.td.com/us.
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SOURCE TD Bank