As the holiday season approaches, Americans are turning to experiences over big ticket, luxury items.
TD Bank’s 2024 Merry Money Survey, which polled more than 2,000 U.S. consumers, shows that over half (52%) of consumers are scaling back their holiday spending due to economic concerns, but are also changing their approach to be more meaningful with loved ones.
See what we learned
About 45% of consumers stated they plan to gift experiences instead of physical holiday presents and the younger generations are really taking this to heart.
Which generation belongs to each stat? Hover over the gifts below to learn more:
68%
61%
23%
...of Gen Z are planning to gift experiences.
... of Millenials are close behind Gen Z in gifting experiences.
Baby Boomers remain attached to convential gifts, with only 23%.
The surprising stat from this discovery is that even high-income households are shifting towards spending time with loved ones over giving out physical items.
Over half (55%) of those earning $100,000 or more said they would opt for experiential gifts over tangible ones.
Budgets are more important than ever.
"The current volatile economic environment, is making this holiday season even more stressful for consumers," said Courtney Mitchell, Retail Market President, Metro PA/South Jersey Region at TD Bank.
As for the spending benchmark, 64% of consumers stated they plan to spend less than $600 during the holidays, with the other third of respondents admitting to spending north of that figure.
“That's why trying to stick to a budget remains one of the most important steps consumers can take to help ease some of the stress that comes with holiday shopping season," Courtney added.
With rising costs and budget concerns, the TD survey also revealed:
81
of respondents are considering ways to limit their holiday expenses.
60
are cutting back on other spending like dining out to prepare for the holidays.
%
of respondents plan to make a holiday budget.
Purchase protection and perks are a must.
When it comes to how consumers plan to purchase their gifts this holiday season, it seems that perks, including cash back, and payment protection are a must for buyers:
34%
7 of 10
21%
1 in 3
62%
of consumers stated they plan to buy with their credit card.
state the reason for using credit would be to get rewards or cash back.
plan to apply for a brand-new credit card before the holidays to take advantage of new user bonuses.
credit users said they will use their card to buy gifts because of the purchase protection these cards offer.
of credit card users aim to pay off holiday balances by January, showcasing a proactive approach to financial health.
“During the holiday season, shoppers are not only looking for great deals but also for added protections that provide peace of mind," said Chris Fred, Head of Credit Cards and Unsecured Lending at TD Bank. “Using a credit card for holiday spending can offer shoppers benefits like fraud and purchase protection, cell phone coverage, emergency card replacement, and identity theft protection, allowing them to shop confidently knowing their purchases and personal information are secure.”
Consumers using Artificial Intelligence to help with Holiday Shopping.
As Artificial Intelligence (AI) continues to become more and more prevalent today, it's making its way into all kinds of everyday tasks.
No matter if it involves experiences, AI or shopping for a conventional gift, consumers are putting more thought into the holidays this year, including how they plan to purchase their gifts.
Hover below to see how shoppers are using ai:
25%
69%
25%
more than 25% of Gen Z and Millennial respondents admitted to tapping into AI to help them with Holiday gift ideas.
69%
Of these tech forward buyers, 69% prefer to shop with brands that offer AI features.
%
% +
70
