A recent survey conducted by CBS News and YouGov indicates that many Americans are feeling financially strained this holiday season. The poll, which included responses from 2,267 U.S. adults between December 15 and 17, 2023, reveals that rising prices have led to significant cutbacks in holiday spending.
The findings show that 58% of respondents find it difficult to afford holiday purchases, with 17% describing their situation as “very difficult.” In contrast, only 8% of those surveyed stated that it would be “very easy” to afford holiday expenditures. The survey highlights the impact of inflation, as 27% of participants reported that prices are “a lot more” than last year, while 44% said they are “a little more.”
Financial challenges are felt more acutely by lower-income households. Among families earning less than $50,000, 71% reported difficulties in affording holiday expenses. This contrasts with 56% of those earning between $50,000 and $100,000, and 58% of respondents with incomes exceeding $100,000.
Spending habits reflect these financial pressures. The survey found that 42% of respondents plan to buy fewer gifts, 32% will cut back on food and drinks, and 50% will reduce spending on entertainment. Conversely, only 5% anticipate spending more on airlines/travel, and 6% expect to increase entertainment expenditures.
Despite these worries, many respondents maintain a positive outlook this holiday season. Approximately 48% expressed feelings of gratitude, while 43% reported feeling happy. However, 39% admitted to feeling stressed, reflecting the complex emotions surrounding holiday spending.
The survey also explored attitudes toward credit use, revealing that 45% of participants plan to avoid credit altogether. Meanwhile, 30% anticipate using some credit, 16% will rely mostly on credit, and 9% indicated they will use credit for all purchases.
Concerns about the broader economy were evident, with only 32% of respondents describing it as good, while 63% deemed it bad. This marks a decline from 39% who felt their financial situation was positive in July.
Inflation remains a significant concern, with 76% of those surveyed indicating that their income has not kept pace with rising costs. The annual inflation rate in the United States was reported at 2.7% as of November 2023, down from 3.0% in September, according to the U.S. Bureau of Labor Statistics.
Perceptions of the job market appear bleak, with only 5% rating it as “very good,” and 14% unsure of its status. The national unemployment rate stands at 4.6%, as released by the U.S. Bureau of Labor Statistics.
On a brighter note, more Americans are optimistic about the stock market compared to previous assessments. Among those who consider the market’s performance significant to their finances, 10% rated it as “very good,” while 32% deemed it “fairly good.”
Gas prices show signs of stabilizing, with 32% reporting a decrease, compared to 12% in October. The average price for unleaded gasoline is currently around $2.85 per gallon, down from $3.04 a year ago, according to the American Automobile Association (AAA).
The survey’s sample was weighted to be representative of adults nationwide, based on demographics such as gender, age, race, and education. The margin of error for the poll is 2.5 percentage points.
