Sixty-two percent of Americans who set a holiday budget go over their limit by an average of $140, marking a 20% increase from what people estimated they would overspend last year, according to a new holiday shopping survey released by Coinstar.
In order to buy gifts for everyone on their list, 66% of shoppers find they need to cut back on things they enjoy like dining out (43%) and entertainment (42%), or even take on credit card debt (27%) or purchase an item on layaway (22%).
Not only do people have to sacrifice before the holidays, but this overspending leads to post-holiday money issues, too. Americans reported they find themselves saving less money (20%), having to set a budget (19%) or dealing with debt (18%) in the first few weeks after the holidays.
“The holidays can be a stressful time of the year, particularly when it comes to money,” said Andrea Woroch, a nationally recognized consumer and money saving expert. “Fortunately, there is hidden money throughout most homes in the form of coins and gift cards that can help people avoid taking on debt because of their over-spending.”
Additional survey findings include:
- Credit card use grows: Gifters are nearly 20% more likely to use credit cards instead of cash or gift cards to pay for their holiday gifts this year (49% in 2015 vs. 41% in 2014);
- Budgeting needs for the younger crowd: More than twice as many people ages 18-34 admit they need to set a budget after the holidays when compared to people over the age of 35 (30% vs. 14%); and
- Millennials are making sacrifices: Eighty percent of people ages 18-34 admitted to needing to make trade-offs to ensure they can purchase gifts for everyone on their list, while 47% of people that age need to use credit cards to pay for their presents.