More consumers plan to spend more than last year, and fewer consumers will spend less than last year, according to the 14th annual holiday spending survey conducted by the Consumer Federation of America and the Credit Union National Association. Since 2012, the percentage who said they would spend more than the previous year rose from 12 to 13, while the percentage who said they would spend less declined from 38 to 32.
The survey suggests that holiday spending will increase at least as fast as last year,” said Bill Hampel, Chief Economist for the Credit Union National Association. The intention of consumers to increase holiday spending from last year is consistent with, and may well reflect, perceived improvement in their financial situation.
If you find yourself in a financial situation where you feel you can spend more this holiday season consider saving that money instead. You may need it in the coming year to pay for an emergency or can build your savings for an item like a home or for retirement.
CUNA/CFA Tips for Spending and Borrowing Prudently
CUNA and CFA suggest the following tips for spending prudently and not taking on too much debt:
· Plan: Make a list of what you want to purchase and how much this should cost.
· Comparison Shop: Compare prices on-line and in stores.
· Pay Off Debts Quickly: Carrying credit card debt is fairly expensive.
· Start Saving for Next Year: Ask your credit union or bank to automatically transfer funds into a savings or Christmas Club account each month.