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2016 Holiday Spending Survey

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’Tis the season to be jolly — but it’s not so jolly for many consumers, as the holidays can cause financial stress and often put consumers into debt. According to a nationwide survey from Experian, the primary reason is that most consumers don’t create budgets and are unprepared to cover added expenses beyond gifts, such as postage costs, hostess gifts, gift-wrapping supplies and greeting cards.

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2016 Holiday Spending Survey

  1. 1. EDELMAN INTELLIGENCE Experian Holiday Shopping Survey November 2016
  2. 2. 2 © Copyright 2016 Daniel J Edelman Inc. WHO HOW MANY ACCURACY WHEN HOW Adults (18+) nationwide n=1,040 Margin of Error = ± 3.1% Data Collection Occurred October 5-12, 2016 Online Survey Research Methodology NOTE: THROUGHOUT THIS REPORT, TOTALS MAY NOT ADD TO 100% DUE TO ROUNDING
  3. 3. 3 © Copyright 2016 Daniel J Edelman Inc. Key Findings Most consumers feel stressed about their finances during the holiday season, and nearly a quarter would risk identity theft to get a good deal While the vast majority of shoppers have incurred unexpected holiday expenses in the past, most still do not budget for them The average dollar amount spent on unexpected holiday expenses is $288, which has put nearly a third of consumers into credit card debt Unexpected gifts (like hostess gifts or gifts for people that shoppers did not plan to see) are the most common and frustrating extra holiday expenses
  4. 4. HOLIDAY SHOPPING EMOTIONS
  5. 5. 5 © Copyright 2016 Daniel J Edelman Inc. Shoppers are especially excited about this upcoming holiday season, but many also feel stressed, overwhelmed or anxious Q: When you think about holiday shopping, which of the following emotions do you feel? [MULTI-SELECT] Holiday Shopping Emotions 39% 38% 35% 35% 25% 48% 46% 44% 41% 31% Thoughtful Excited Joyful Generous Grateful 2015 2016 +9 +8 +9 +6 +6
  6. 6. 6 © Copyright 2016 Daniel J Edelman Inc. Q: To what extent do you agree or disagree with each of the following statements? Q: Which, if any, of the following best describes why holiday shopping can be financially stressful for you personally? (Asked if stressed about finances / strain on finances, 2015 n=666, 2016 n=658) [MULTI-SELECT] More than half of shoppers are worried about the impact of the holidays on their finances, especially whether they have extra money to buy gifts Financial Stress of Holiday Shopping (Shown among those who feel stressed or feel a strain on their finances) 35% 38% 38% 11% 43% 40% 39% 11% No extra money to buy gifts Difficult staying in budget Don't want to add to my debt No credit to buy gifts 2015 2016 +8 56% Say holiday shopping puts a strain on their finances 55% Feel stressed about their finances during the holiday season
  7. 7. 7 © Copyright 2016 Daniel J Edelman Inc. Many consumers feel they spend too much during the holiday season, sometimes to the point of not being able to enjoy them Q: To what extent do you agree or disagree with each of the following statements? 43% 44% 56% The extra expense of the holidays makes them hard to enjoy I feel obligated to spend more than I can afford when buying holiday gifts I spend too much during the holiday season Feelings Towards Spending (Shown: % Agree) 18-34: 57% Parents: 53% HHI <$50K: 47% HHI <$50K: 51% 18-34: 48% Women: 47% Parents: 69% 35-54: 65% 18-34: 62%
  8. 8. HOLIDAY SHOPPING BUDGETS & SPENDING
  9. 9. 9 © Copyright 2016 Daniel J Edelman Inc. Anticipated holiday spending has dipped from 2015 levels, but many will still need to charge their holiday spending to a credit card Q: Approximately, how much do you plan to spend on holiday gifts this season? Q: Approximately what percent of that holiday shopping budget do you… $758 $806 $734 Anticipated 2014 Anticipated 2015 Anticipated 2016 Anticipated Holiday Spending (Shown: Mean USD Amount) HHI <$50K $417 HHI $50-$99K $849 HHI $100K+ $1,183 Parents $1,059 No Children $513 Men $898 Women $593 Percent Saved vs. Charged (Shown: Mean % of Budget) 47% 31% 22% Have already saved Will save in coming months Will charge to credit card
  10. 10. 10 © Copyright 2016 Daniel J Edelman Inc. 55% 47% 46% 18% 17% 9% 6% After cash, credit cards will be the most common form of payment for holiday purchases Q: How do you plan to pay for your holiday gifts this year? Shopping Payment Method Most Likely to Use Major Credit Cards: -HHI $100K+ (67%) -Men (55%) Most Likely to Use Store Credit Cards: -18-34 (25%) -Parents (24%)
  11. 11. 11 © Copyright 2016 Daniel J Edelman Inc. Most consumers identify with the “Sensible Frosty,” but many admit they will spend whatever it takes to have an enjoyable holiday season Q: Which of the following best describes your own personal approach to holiday spending? 17% 19% 44% 20% GRINCH– 17% I spend the bare minimum and skip parties and presents whenever possible More likely to be: • Less affluent, HHI <$50K (26%) • Ages 55+ (24%) • Those without kids (22%) SENSIBLE FROSTY – 44% I start with a budget, but sometimes spend on unexpected things More likely to be: • Parents (54%) • Ages 18-34 (50%) or 35-54 (48%) • HHI of $50-$99K (48%) SANTA CLAUS – 20% I don’t budget or plan, I spend whatever to have an enjoyable holiday season More likely to be: • More affluent, HHI $100K+ (31%) • Ages 55+ (26%) • Men (23%) SQUEAKY ELF – 19% I buy presents and attend parties, but I budget every dollar and stick to that budget More likely to be: • Ages 18-34 (24%) • HHI of $50-$99K (21%) Holiday Budgeting Personality Types
  12. 12. 12 © Copyright 2016 Daniel J Edelman Inc. Q: Which, if any, of the following have you… Ever done in the past / Plan to do this holiday season? And when asked about this specific holiday season, less than half of consumers are planning to set a budget 62% HAVE SHOPPED WITHOUT A BUDGET Have Gone Holiday Shopping Without a Budget 42% PLAN TO SET ASIDE A BUDGET THIS YEAR Plan to Set Aside a Holiday Shopping Budget this Year 18-34: 52% Parents: 48%
  13. 13. UNEXPECTED HOLIDAY EXPENSES
  14. 14. 14 © Copyright 2016 Daniel J Edelman Inc. Holiday shoppers admit that they have been hit by unexpected holiday expenses in the past, but most do not budget for them Q: Which of the following best describes how much you spend during the holiday season? Q: Which of the following expenses have you ever had that you did not expect or plan for? [MULTI-SELECT] (Shown: % Any Selected) Q: Do you account for extra holiday expenses when making your holiday spending budget? (Asked of those who have budgeted or plan to budget for holiday shopping, n=761; Shown off total base) NOTE: TOTALS MAY NOT ADD TO 100% DUE TO ROUNDING Incurring Unexpected Holiday Expenses 28% Had unexpected holiday expenses Never had unexpected holiday expenses 72% BEEN HIT BY UNEXPECTED EXPENSES 35% 27% Budget for unexpected costs Do not budget for unexpected costs Do not budget at all 39% BUDGET FOR EXTRA HOLIDAY EXPENSES Budgeting for Unexpected Holiday Expenses Expected vs. Actual Spending 42% 10% More than expected Exactly as expected Less than expected 48% SPEND MORE THAN EXPECTED Parents: 85% 18-34: 83% Parents: 60% 18-34: 56%
  15. 15. 15 © Copyright 2016 Daniel J Edelman Inc. Unexpected holiday expenses can break the budget and even put shoppers into credit card debt Q: How much money do you typically end up spending on extra holiday expenses? (Asked if incurred unexpected holiday expenses, n=753) Q: Have you ever spent more on the “extra holiday expenses” than gifts? (Asked if incurred unexpected holiday expenses, n=753; Shown off total base) Q: Have extra holiday expenses ever put you into credit card debt? (Asked if incurred unexpected holiday expenses, n=753; Shown off total base) Unexpected Expenses & Credit Card Debt 28% HAVE SPENT MORE ON EXTRA HOLIDAY EXPENSES THAN GIFTS 31% HAVE GONE INTO DEBT FROM EXTRA HOLIDAY EXPENSES Average Dollar Amount of Extra Holiday Expenses: $288 Spending More on the Unexpected Expenses Parents: 44% 35-54: 39% 18-34: 36% 18-34: 38% Parents: 37% HHI <$50K $168 HHI $50-$99K $267 HHI $100K+ $602 Parents $393 No Children $200
  16. 16. 16 © Copyright 2016 Daniel J Edelman Inc. Unexpected gifts – like hostess gifts or gifts for people that shoppers had not planned to see – are most common and frustrating Q: Which of the following expenses have you ever had that you did not expect or plan for? [MULTI-SELECT] Q: Which unexpected holiday expenses frustrate you the most? (Asked if incurred unexpected holiday expenses, n=753) NOTE: TOTALS MAY NOT ADD TO 100% DUE TO ROUNDING Top Unexpected Holiday Expenses 1 2 3 4 5 Other Top 5 Most Incurred Unexpecte d gifts (31%) Baking/ cooking supplies (26%) Gift wrapping supplies (25%) Greeting cards (21%) Mailing costs for sending gifts (21%) • Home décor (20%) • Order delivery costs (19%) • New holiday clothes (19%) • Travel costs (17%) • Entertainment (15%) • Party supplies (15%) • Charitable donations (14%) • Holiday tips (13%) Top 5 Most Frustratin g Unexpecte d gifts (25%) Order delivery costs (12%) Mailing costs for sending gifts (10%) Baking/ cooking supplies (9%) Travel costs (8%) • New holiday clothes (6%) • Gift wrapping supplies (6%) • Home décor (5%) • Entertainment (4%) • Greeting cards (4%) • Holiday tips (4%) • Charitable donations (3%) • Party supplies (2%)
  17. 17. HOLIDAY SHOPPING & IDENTITY PROTECTION
  18. 18. 18 © Copyright 2016 Daniel J Edelman Inc. 42% 34% 15% 23% 43% 44% Black Friday Cyber Monday Yes Unsure No Consumers still expect to do most of their shopping at brick-and- mortar stores, but many are already planning on making Cyber Monday purchases Q: What percentage of your holiday shopping do you anticipate doing… Q: Do you plan on doing any holiday shopping on… NOTE: TOTALS MAY NOT ADD TO 100% DUE TO ROUNDING Anticipated Shopping Methods (Shown: Mean Percentage) 55% 33% 12% 45% NET ONLINE Anticipated Shopping Days
  19. 19. 19 © Copyright 2016 Daniel J Edelman Inc. Most shoppers do not perceive a difference in their risk of identity theft in-store or online Q: Where do you feel that your identity is most at risk this holiday season? (Asked if shopping both in-store and online, n=808) Q: Where do you feel that your identity is most at risk this holiday season? Using a credit or debit card on… (Asked if shopping on both Black Friday and Cyber Monday, n=342) NOTE: TOTALS MAY NOT ADD TO 100% DUE TO ROUNDING 16% 27% In a retail store When online shopping Both equally 21% 17% Black Friday Cyber Monday Both equally Highest Risk of ID Theft by Shopping Method Highest Risk of ID Theft by Shopping Day 56% BOTH EQUALLY 62% BOTH EQUALLY
  20. 20. 20 © Copyright 2016 Daniel J Edelman Inc. Most consumers say they are concerned about identity theft this holiday season, but nearly a quarter would take the risk for a good deal Q: Please rate how concerned you are about identity theft this holiday season. Q: Would you risk becoming a victim of identity theft in order to get a good Cyber Monday deal? NOTE: TOTALS MAY NOT ADD TO 100% DUE TO ROUNDING Concern about Identity Theft 31% 22% 46% Very concerned Somewhat concerned Not concerned 54% NET CONCERNED 23% WOULD RISK ID THEFT FOR A GOOD CYBER MONDAY DEAL Risking Identity Theft for a Deal 18-34: 31% Parents: 30% Men: 26%
  21. 21. 21 © Copyright 2016 Daniel J Edelman Inc. 55% 55% 54% 53% 50% 43% 29% Check to see if the site is secure Log out of personal accounts after shopping Shop only on personal internet connections / networks Go to websites directly instead of clicking on links Don't click on links sent in emails Don't store payment card info on retailers' websites Pay with a credit card dedicated to online shopping only Among those that plan to shop online, the most common precautions are using secure sites, logging out of accounts and using personal wi-fi Q: Which, if any, of the following actions do you take to protect your identity when shopping online? (Asked if shopping online, n=867) Actions Taken to Protect against Identity Theft
  22. 22. 22 © Copyright 2016 Daniel J Edelman Inc. 40% 25% 22% 20% 18% 18% 13% 11% 6% Save more Pay off a credit card Create personal budget Pay full credit card balance each month Pay credit card debt on time Not open any more credit cards Check credit score more often Check credit report more often Enroll in credit monitoring service Looking ahead to 2017, consumers’ top resolutions are to save more, pay off a credit card, create a budget and pay off credit balances in full Q: Which of the following are your 2017 New Year’s credit resolutions? [MULTI-SELECT] 2017 New Year’s Credit Resolutions 21% NET CREDIT MONITORING
  23. 23. APPENDIX I: DEMOGRAPHICS
  24. 24. 24 © Copyright 2016 Daniel J Edelman Inc. Category Subcategory Total Gender Male 46% Female 54% Age 18-34 27% 35-44 19% 45-54 19% 55-64 18% 65 or older 16% Region Northeast 19% Midwest 22% South 36% West 23% Race / Ethnicity White 71% African American 13% Hispanic 8% Asian 4% Other 3% Category Subcategory Total Employment Status Employed 62% Unemployed 4% Retired 19% Student 4% Homemaker 9% Other 2% Education High school or less 19% Some college 30% College graduate 35% Graduate school 16% Household Income Less than $50,000 36% $50,000 to less than $100,000 41% $100,000 or more 18% Children in Household Yes 39% No 61% Demographics NOTE: Totals may not add up to 100 due to rounding
  25. 25. APPENDIX II: YEAR OVER YEAR TRENDING DATA
  26. 26. 26 © Copyright 2016 Daniel J Edelman Inc. Trend: Feelings Toward Holiday Spending Q: To what extent do you agree or disagree with each of the following statements? 60% 52% 41% 56% 55% 44% Holiday shopping puts a strain on my finances I feel stressed about my finances during the holiday season I feel obligated to spend more than I can afford when buying holiday gifts 2015 2016 Feelings Towards Spending (Shown: % Agree)
  27. 27. 27 © Copyright 2016 Daniel J Edelman Inc. Trend: Spending Concerns and Expected vs. Actual Spending Q: In your opinion, what – if anything – is the worst part about holiday shopping? Q: Which of the following best describes how much you spend during the holiday season? NOTE: TOTALS MAY NOT ADD TO 100% DUE TO ROUNDING Expected vs. Actual SpendingBiggest Holiday Shopping Concern 27% 20% 14% 12% 9% 4% 4% 30% 20% 10% 13% 10% 5% 3% Crowds Picking the right gift Sticking to a budget Having cash/credit to buy gifts Prices/Deals Keeping gifts a secret Risk of identity theft 2015 2016 11% 10% 50% 42% 38% 48% 2015 2016 More than expected Exactly as expected Less than expected
  28. 28. 28 © Copyright 2016 Daniel J Edelman Inc. 62% 30% 53% 26% 62% 24% Have Done Plan To Do This Season 2014 2015 2016 Trending Data: Holiday Shopping Budgeting Q: Which, if any, of the following have you… Ever done in the past / Plan to do this holiday season? 54% 38% 47% 43% 56% 42% Have Done Plan To Do This Season 2014 2015 2016 Shop for Holiday Gifts without a Set BudgetSet Aside a Budget for Holiday Shopping
  29. 29. 29 © Copyright 2016 Daniel J Edelman Inc. Trending Data: Anticipated Shopping Breakout Q: What percentage of your holiday shopping do you anticipate doing… NOTE: TOTALS MAY NOT ADD TO 100 DUE TO ROUNDING Anticipated Shopping Breakout (Shown: Mean % of Budget) 12% 9% 12% 39% 36% 33% 48% 55% 55% 2014 2015 2016 In-Store Online - Computer Online - Mobile
  30. 30. 30 © Copyright 2016 Daniel J Edelman Inc. 59% 48% 47% 23% 22% 2% 1% 53% 49% 45% 22% 18% 9% 6% 55% 47% 46% 18% 17% 9% 6% Cash Major credit card Debit card Reward points Store credit card Layaway Specialized savings account 2014 2015 2016 Trending Data: Anticipated Shopping Payment Method Q: How do you plan to pay for your holiday gifts this year? [MULTI-SELECT] Shopping Payment Method
  31. 31. 31 © Copyright 2016 Daniel J Edelman Inc. Trending Data: Holiday Budget Saved vs. Charged Percentage of Budget Saved vs. Charged (Shown: Mean % of Budget) 52% 25% 23% 47% 31% 22% Have already saved Will save in coming months Will charge to a credit card 2015 2016 Q: Approximately what percent of that holiday shopping budget do you…
  32. 32. 32 © Copyright 2016 Daniel J Edelman Inc. Trending Data: Identity Theft Q: Please rate how concerned you are about identity theft this holiday season. Q: Where do you feel that your identity is most at risk this holiday season? (Asked if shopping both in-store and online, 2015 n=799, 2016 n=808) NOTE: TOTALS MAY NOT ADD TO 100% DUE TO ROUNDING 50% 46% 22% 22% 28% 31% 2015 2016 Very concerned Somewhat concerned Not concerned 55% 56% 30% 27% 14% 16% 2015 2016 In a retail store Online shopping Both Concern About Identity Theft Risk of ID Theft by Method
  33. 33. 33 © Copyright 2016 Daniel J Edelman Inc. 61% 61% 59% 59% 54% 46% 28% 52% 51% 54% 48% 45% 35% 25% 55% 55% 54% 53% 50% 43% 29% Check to see if the site is secure Log out of personal accounts after shopping Shop only on personal internet connections / networks Go to websites directly instead of clicking on links Don't click on links sent in emails Don't store payment card info on retailers' websites Pay with a credit card dedicated to online shopping only 2014 2015 2016 Protecting against Identity Theft Trending Data: Online Data Protections Q: Which, if any, of the following actions do you take to protect your identity when shopping online? (Asked if shopping online; 2014 n=899, 2015 n=864, 2016 n=867)
  34. 34. 34 © Copyright 2016 Daniel J Edelman Inc. Trending Data: New Year’s Resolutions Q: Which of the following are your 2016 / 2017 New Year’s credit resolutions? [MULTI-SELECT] 28% 25% 21% 18% 14% 14% 7% 25% 20% 18% 18% 13% 11% 6% Pay off a credit card Pay full credit card balance each month Pay credit card debt on time Not open any more credit cards Check credit score more often Check credit report more often Enroll in credit monitoring service 2015 2016 New Year’s Credit Resolutions
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