BLOOMINGTON, Ill., Dec. 13, 2017 /PRNewswire/ -- When it comes to
holiday spending, Americans are willing to go to some extremes to
afford gifts – even if they don't have the means. More than half
(57 percent) expect to take on some form of debt to provide gifts
for friends and family.
The COUNTRY Financial Security Index® surveyed Americans just
weeks before the holiday season to see how financially secure they
feel going into the busy shopping season. The results show many
Americans are overspending, digging into their savings and racking
up credit card bills as a result.
"We're seeing Americans reach into their various savings
accounts each year to offset the increase in spending during the
holidays," says Doyle Williams, an
executive vice president at COUNTRY Financial. "Holiday
spending can be overwhelming but it doesn't have to be. By taking
some simple steps to better manage finances and savings throughout
the year, Americans can make holiday purchases without forgoing
savings or acquiring unwanted debt."
Forgoing Savings to Afford Holiday Spending
More Americans are forgoing savings and placing financial
security on the back burner this holiday season. One in five (18
percent) admit to taking money out of their savings to afford
holiday shopping, one-third (31 percent) put their holiday spending
on a credit card, 12 percent temporarily suspend putting money into
their savings account, and one percent borrow money from
friends.
However, some American families choose to make changes in
personal behavior and spending habits to afford holiday spending.
Instead of going into debt over the holiday or pulling money from
other resources, one quarter (27 percent) choose to tighten their
belt on all other spending.
Overspending During the Holidays
While some Americans are planning to stick to a holiday spending
budget without exception (23 percent), many have areas where
overspending can be an issue. Women are more likely than men to
overspend on gifts for their children (40 to 27 percent,
respectively), while men are more likely than women to overspend on
gifts for themselves (six percent to two percent,
respectively).
Surprisingly, gifts aren't the only thing causing Americans to
overspend this holiday; food (eight percent) and vacations (seven
percent) are also expected to drive people over budgets.
Student Loans, Car Payments and Medical Bills Slow Holiday
Spending
Some Americans plan to stay away from holiday overspending
altogether. When asked to describe which financial obligation is
the greatest deterrent for overspending during the holidays,
respondents cite worrying about increasing their credit card debt
(13 percent) or losing one's job as a key factor (12 percent).
Holiday spending priorities also vary with age. Younger
Americans, age 18 – 34, are more worried about making their car
payment (11 percent) and paying their student loans (nine percent),
while the oldest Americans, age 65 and older, are more likely to
spend less on the holidays so they can pay medical bills (11
percent).
Overall Financial Security and Confidence
Americans are equally split when rating their overall level of
financial security. Nearly half (49 percent) rate their overall
level of financial security as excellent or good, while half rate
their financial security as fair or poor (46 percent).
Aside from holiday spending, more than half of Americans (52
percent) have been able to set aside money for savings over the
past two months than not (41 percent). Nearly six in ten (58
percent) say they are very or somewhat likely to feel they will
have enough money to enjoy a comfortable retirement in the future,
yet three in 10 are still not confident that they will have a
comfortable retirement (29 percent).
About The COUNTRY Financial Security
Index®
Since 2007, the COUNTRY Financial Security Index has measured
Americans' sentiments of their personal financial security. The
Index also delves deeper into individual personal finance topics to
better inform Americans about the issues impacting their finances.
Survey data, videos and analysis are available
at www.countryfinancial.com/newsroom and on Twitter at
@helloCOUNTRY.
The COUNTRY Financial Security Index was created by COUNTRY
Financial and is compiled by GfK, an independent research firm.
Surveys were conducted using GfK's KnowledgePanel®, a
national, probability-based panel designed to be representative of
the general population and includes responses from approximately
1,006 U.S. adults for national surveys. The margin of sampling
error for a survey based on this many interviews is approximately
+/- 3 percentage points with a 95 percent level of confidence.
About COUNTRY Financial®
The COUNTRY Financial® group
(www.countryfinancial.com) serves about one million households and
businesses throughout the United
States. It offers a wide range of financial products and
services from auto, home, business and life insurance to retirement
planning services, investment management and annuities.
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SOURCE COUNTRY Financial