The amount of money Americans plan to allocate for the holidays this year is on track to surpass pre-pandemic levels for the first time. In 2023, holiday spending is expected to grow between 3% and 4% over 2022 volumes, to between $957.3 billion and $966.6 billion, according to the National Retail Federation (NRF).
Most Americans (80%) are prepared to dish out up to $1,000 this holiday season, according to a recent Bank of America survey. Roughly 43% of respondents planned to spend less this year and 57% said they would limit expenditures to the same or more, with 9% planning a significantly bigger splurge this year. Millennials were three times more likely to spend big compared to other generations, the survey said.
Despite budgeting for healthy holiday spending, 70% said they did not expect to take on any debt to purchase holiday gifts.
If you’re planning to borrow money to finance holiday shopping, you may want to consider a 0% APR credit card or a personal loan for larger purchases.
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