The National Retail Federation calculates that the average American will spend about $998 on Christmas gifts, decorations, meals and a few items for themselves. The total falls about $50 short of the pre-pandemic high set in 2019.
Cardify, a market research platform that tracks consumer transaction data from its mobile-rewards parent company, Drop, surveyed 2,000 Buy Now, Pay Later (BNPL) platform users. It found that 54% of them will charge a credit card for gifts this holiday season.
That falls between debit cards at 65% and BNPL plans at 45% popularized through platforms like PayPal and major retailers like Amazon and Home Depot. Cash? According to Cardify, 31% will use the old-timey currency to make a purchase. Of course, there is crossover within the data as survey respondents chose more than one option.
Christmas arrives in less than two weeks. Even so, Justin Buttrick, president and founder of Vision Wealth Advisors in Lewisburg, said it’s not too late to make a spending plan. It might be hard but it’s a great way to avoid overextending one’s personal finances and a great way to alleviate anxiety, Buttrick said.
