Los Angeles, CA (PRWEB) November 21, 2012
The majority of young adults, those age 18-24, will try to avoid letting their holiday shopping put them in debt, but few have a plan for pulling it off. In a recent survey by CreditDonkey.com, a credit card comparison website, over 60% of survey respondents in this age group said they will not finance their holiday shopping with credit. However, 62.4% said they have not set money aside for the holidays to fulfill their wish of paying for their gifts with cash or paying off their credit-card balances immediately after the holidays.
As it is, young shoppers plan to tighten their spending budgets this year. Over 77% of respondents said they will spend less than $50 per family member, and over 91% said they would spend less than $50 per person on gifts to friends.
"While young people have always earned far less than other demographics, the extremely small budgets for gifts this holiday season is a surprising and worrying sign that young people are still not recovering from the financial crisis of 2008," said Charles Tran of CreditDonkey.com. "We found that over 70% of young people are planning on spending less than $25 per person on gifts to friends as tough economic times make frugality the name of the game for young people."
Across age groups, most respondents who participated in CreditDonkey’s wide-ranging survey of more than 1,000 shoppers said they will use a tight budget for their holiday shopping and hope to avoid going into debt when buying gifts this year.
Over 84% of respondents age 18-24 said they will be setting a budget, with the vast majority (69.3%) planning to spend less than $300 in total on holiday gifts this season.
The new frugality may also be making young people more tolerant of acts that were once holiday taboos. For instance, 77.6% of respondents, age 18-24 said it was okay to receive a regifted gift, although only 28.6% admitted to ever regifting a gift for someone else.
"Times are tough for young people, and this survey shows that young people aren't just spending less on themselves – they're spending less on their friends and families,” Tran said. “I expect this trend will continue until young people start getting better jobs with higher wages."
From October 9 to October 23, 2012, CreditDonkey.com polled 1,125 Americans, age 18 and over, about their holiday shopping plans using multiple choice questions and short-answer questionnaires. Of which, 394 respondents were age 18 to 24 and 437 respondents were age 25-34.