2016 Holiday Spending Survey

EDELMAN INTELLIGENCE

Experian Holiday Shopping Survey

November 2016

2 © Copyright 2016 Daniel J Edelman Inc.

WHO HOW MANY ACCURACY WHEN HOW

Adults (18+) nationwide n=1,040

Margin of Error =

± 3.1%

Data Collection Occurred

October 5-12, 2016

Online Survey

Research Methodology

NOTE: THROUGHOUT THIS REPORT, TOTALS MAY NOT ADD TO 100% DUE TO ROUNDING


Key Findings

Most consumers feel stressed about their finances during the holiday season, and nearly a quarter would risk identity theft to get a good deal

While the vast majority of shoppers have incurred unexpected holiday expenses in the past, most still do not budget for them

The average dollar amount spent on unexpected holiday expenses is $288, which has put nearly a third of consumers into credit card debt

Unexpected gifts (like hostess gifts or gifts for people that shoppers did not plan to see) are the most common and frustrating extra holiday expenses

HOLIDAY SHOPPING EMOTIONS


Shoppers are especially excited about this upcoming holiday season, but many also feel stressed, overwhelmed or anxious

Q: When you think about holiday shopping, which of the following emotions do you feel? [MULTI-SELECT]

Holiday Shopping Emotions

Thoughtful

Excited

Joyful

Generous

Grateful

39%

38%

35%

35%

25%

48%

46%

44%

41%

31%

2016 2015

+9

+8

+9

+6

+6


Q: To what extent do you agree or disagree with each of the following statements?Q: Which, if any, of the following best describes why holiday shopping can be financially stressful for you personally? (Asked if stressed about finances / strain on finances, 2015 n=666, 2016 n=658) [MULTI-SELECT]

More than half of shoppers are worried about the impact of the holidays on their finances, especially whether they have extra money to buy gifts

Financial Stress of Holiday Shopping(Shown among those who feel stressed or feel a strain on their finances)

No extra money to buy gifts

Difficult staying in budget

Don't want to add to my debt

No credit to buy gifts

35%38% 38%

11%

43%40% 39%

11%

2015 2016+856%

Say holiday shopping puts a strain on their

finances

55%Feel stressed about their

finances during the holiday

season


Many consumers feel they spend too much during the holiday season, sometimes to the point of not being able to enjoy them

Q: To what extent do you agree or disagree with each of the following statements?

The extra expense of the holidays makes them hard to enjoy

I feel obligated to spend more than I can afford when buying holiday gifts

I spend too much during the holiday season

43%

44%

56%

Feelings Towards Spending(Shown: % Agree)

18-34: 57%Parents: 53%HHI <$50K: 47%HHI <$50K: 51%18-34: 48%Women: 47%

Parents: 69%35-54: 65%18-34: 62%

HOLIDAY SHOPPING BUDGETS & SPENDING


Anticipated holiday spending has dipped from 2015 levels, but many will still need to charge their holiday spending to a credit card

Q: Approximately, how much do you plan to spend on holiday gifts this season?Q: Approximately what percent of that holiday shopping budget do you…

$758 $806 $734

Anticipated Holiday Spending(Shown: Mean USD Amount)

HHI <$50K $417HHI $50-$99K $849

HHI $100K+ $1,183

Parents $1,059No Children $513

Men $898Women $593

Percent Saved vs. Charged(Shown: Mean % of Budget)

47%

31%

22%

Have already savedWill save in coming monthsWill charge to credit card


55%

47% 46%

18% 17%

9%6%

After cash, credit cards will be the most common form of payment for holiday purchases

Q: How do you plan to pay for your holiday gifts this year?

Shopping Payment MethodMost Likely to Use

Major Credit Cards:

-HHI $100K+ (67%) -Men (55%)

Most Likely to Use Store Credit

Cards: -18-34 (25%) -Parents (24%)


Most consumers identify with the “Sensible Frosty,” but many admit they will spend whatever it takes to have an enjoyable holiday season

Q: Which of the following best describes your own personal approach to holiday spending?

17%

19%

44%

20%

GRINCH– 17%I spend the bare minimum

and skip parties and presents whenever possible

More likely to be:• Less affluent, HHI <$50K

(26%)• Ages 55+ (24%)• Those without kids (22%)SENSIBLE FROSTY –

44%I start with a budget, but

sometimes spend on unexpected things

More likely to be:• Parents (54%)• Ages 18-34 (50%) or 35-54

(48%)• HHI of $50-$99K (48%)

SANTA CLAUS – 20%I don’t budget or plan, I

spend whatever to have an enjoyable holiday season

More likely to be:• More affluent, HHI $100K+

(31%)• Ages 55+ (26%)• Men (23%) SQUEAKY ELF – 19%

I buy presents and attend parties, but I budget every

dollar and stick to that budget

More likely to be:• Ages 18-34 (24%)• HHI of $50-$99K (21%)

Holiday Budgeting Personality Types


Q: Which, if any, of the following have you… Ever done in the past / Plan to do this holiday season?

And when asked about this specific holiday season, less than half of consumers are planning to set a budget

62%HAVE

SHOPPED WITHOUT A

BUDGET

Have Gone Holiday Shopping Without a

Budget

42%PLAN TO SET

ASIDE A BUDGET THIS

YEAR

Plan to Set Aside a Holiday Shopping Budget

this Year

18-34: 52%Parents: 48%

UNEXPECTED HOLIDAY EXPENSES


Holiday shoppers admit that they have been hit by unexpected holiday expenses in the past, but most do not budget for them

Q: Which of the following best describes how much you spend during the holiday season?Q: Which of the following expenses have you ever had that you did not expect or plan for? [MULTI-SELECT] (Shown: % Any Selected)Q: Do you account for extra holiday expenses when making your holiday spending budget? (Asked of those who have budgeted or plan to budget for holiday shopping, n=761; Shown off total base) NOTE: TOTALS MAY NOT ADD TO 100% DUE TO ROUNDING

Incurring UnexpectedHoliday Expenses

28%

Had unexpected holiday expenses

72%BEEN HIT BY UNEXPECTED

EXPENSES35%

27%

Budget for unexpected costsDo not budget for unexpected costsDo not budget at all

39%BUDGET FOR

EXTRA HOLIDAY

EXPENSES

Budgeting for UnexpectedHoliday Expenses

Expected vs. ActualSpending

42%

10%

More than expectedExactly as expectedLess than expected

48%SPENDMORE THAN

EXPECTED Parents: 85%18-34: 83%

Parents: 60%18-34: 56%


Unexpected holiday expenses can break the budget and even put shoppers into credit card debt

Q: How much money do you typically end up spending on extra holiday expenses? (Asked if incurred unexpected holiday expenses, n=753)Q: Have you ever spent more on the “extra holiday expenses” than gifts? (Asked if incurred unexpected holiday expenses, n=753; Shown off total base)Q: Have extra holiday expenses ever put you into credit card debt? (Asked if incurred unexpected holiday expenses, n=753; Shown off total base)

Unexpected Expenses &Credit Card Debt

28%HAVE SPENT

MORE ON EXTRA HOLIDAY

EXPENSES THAN GIFTS

31%HAVE GONE INTO DEBT

FROM EXTRA HOLIDAY

EXPENSES

Average Dollar Amount of

Extra Holiday Expenses:

$288

Spending More on the Unexpected Expenses

Parents: 44%35-54: 39%18-34: 36%

18-34: 38%Parents: 37%

HHI <$50K $168

HHI $50-$99K

$267

HHI $100K+ $602

Parents $393

No Children $200


Unexpected gifts – like hostess gifts or gifts for people that shoppers had not planned to see – are most common and frustrating

Q: Which of the following expenses have you ever had that you did not expect or plan for? [MULTI-SELECT]Q: Which unexpected holiday expenses frustrate you the most? (Asked if incurred unexpected holiday expenses, n=753) NOTE: TOTALS MAY NOT ADD TO 100% DUE TO ROUNDING

Top Unexpected Holiday Expenses1 2 3 4 5 Other

Top 5 Most

Incurred

Unexpected gifts (31%)

Baking/ cooking supplies (26%)

Gift wrapping supplies (25%)

Greeting cards (21%)

Mailing costs for sending

gifts (21%)

• Home décor (20%)• Order delivery costs

(19%)• New holiday clothes (19%)• Travel costs (17%)• Entertainment (15%)• Party supplies (15%)• Charitable donations

(14%)• Holiday tips (13%)

Top 5 Most

Frustrating

Unexpected gifts (25%)

Order delivery

costs (12%)

Mailing costs for sending

gifts (10%)

Baking/ cooking supplies

(9%)

Travel costs (8%)

• New holiday clothes (6%)• Gift wrapping supplies

(6%)• Home décor (5%)• Entertainment (4%)• Greeting cards (4%)• Holiday tips (4%)• Charitable donations (3%)• Party supplies (2%)

HOLIDAY SHOPPING & IDENTITY

PROTECTION


Black Friday Cyber Monday

42% 34%

15% 23%

43% 44%

Yes Unsure No

Consumers still expect to do most of their shopping at brick-and-mortar stores, but many are already planning on making Cyber Monday purchases

Q: What percentage of your holiday shopping do you anticipate doing… Q: Do you plan on doing any holiday shopping on…NOTE: TOTALS MAY NOT ADD TO 100% DUE TO ROUNDING

Anticipated Shopping Methods(Shown: Mean Percentage)

55%33%

12%

45%NET

ONLINE

Anticipated Shopping Days


Most shoppers do not perceive a difference in their risk of identity theft in-store or online

Q: Where do you feel that your identity is most at risk this holiday season? (Asked if shopping both in-store and online, n=808)Q: Where do you feel that your identity is most at risk this holiday season? Using a credit or debit card on… (Asked if shopping on both Black Friday and Cyber Monday, n=342)NOTE: TOTALS MAY NOT ADD TO 100% DUE TO ROUNDING

16%

27%

In a retail store When online shoppingBoth equally

21%

17%

Black Friday Cyber Monday Both equally

Highest Risk of ID Theft by Shopping MethodHighest Risk of ID Theft by Shopping Day

56%BOTH EQUALLY

62%BOTH EQUALLY


Most consumers say they are concerned about identity theft this holiday season, but nearly a quarter would take the risk for a good deal

Q: Please rate how concerned you are about identity theft this holiday season.Q: Would you risk becoming a victim of identity theft in order to get a good Cyber Monday deal?NOTE: TOTALS MAY NOT ADD TO 100% DUE TO ROUNDING

Concern about Identity Theft

31%

22%

46%

Very concerned Somewhat concerned

54%NET CONCERNED

23%WOULD RISK ID THEFT FOR A GOOD CYBER MONDAY DEAL

Risking Identity Theft for a Deal

18-34: 31%Parents: 30%Men: 26%


Check to see if the site is secure

Log out of personal accounts after shopping

Shop only on personal internet connections / networks

Go to websites directly instead of clicking on links

Don't click on links sent in emails

Don't store payment card info on retailers' websites

Pay with a credit card dedicated to online shopping only

55%

55%

54%

53%

50%

43%

29%

Among those that plan to shop online, the most common precautions are using secure sites, logging out of accounts and using personal wi-fi

Q: Which, if any, of the following actions do you take to protect your identity when shopping online? (Asked if shopping online, n=867)

Actions Taken to Protect against Identity Theft


40%

25%22% 20% 18% 18%

13% 11%6%

Looking ahead to 2017, consumers’ top resolutions are to save more, pay off a credit card, create a budget and pay off credit balances in full

Q: Which of the following are your 2017 New Year’s credit resolutions? [MULTI-SELECT]

2017 New Year’s Credit Resolutions

21%NET CREDIT MONITORING

APPENDIX I: DEMOGRAPHICS


Category Subcategory Total

GenderMale 46%

Female 54%

Age

18-34 27%35-44 19%45-54 19%55-64 18%

65 or older 16%

Region

Northeast 19%Midwest 22%South 36%West 23%

Race / Ethnicity

White 71%African American 13%

Hispanic 8%Asian 4%Other 3%

Category Subcategory Total

Employment Status

Employed 62%Unemployed 4%

Retired 19%Student 4%

Homemaker 9%Other 2%

Education

High school or less 19%Some college 30%

College graduate 35%Graduate school 16%

Household Income

Less than $50,000 36%$50,000 to less than

$100,000 41%

$100,000 or more 18%Children

in Househol

d

Yes 39%

No 61%

Demographics

NOTE: Totals may not add up to 100 due to rounding

APPENDIX II: YEAR OVER YEAR

TRENDING DATA


Trend: Feelings Toward Holiday Spending

Q: To what extent do you agree or disagree with each of the following statements?

60%52%

41%

56% 55%44%

2015 2016

Feelings Towards Spending(Shown: % Agree)


Trend: Spending Concerns and Expected vs. Actual Spending

Q: In your opinion, what – if anything – is the worst part about holiday shopping?Q: Which of the following best describes how much you spend during the holiday season?NOTE: TOTALS MAY NOT ADD TO 100% DUE TO ROUNDING

Expected vs. Actual SpendingBiggest Holiday Shopping Concern

Crowds

Picking the right gift

Sticking to a budgetHaving cash/credit to buy

giftsPrices/Deals

Keeping gifts a secret

Risk of identity theft

27%20%

14%12%

9%4%

4%

30%

20%10%

13%

10%5%

3%

2016 2015

2015 201611% 10%

50% 42%

38% 48%

More than expectedExactly as expected


Have Done Plan To Do This Season

62%

30%

53%

26%

62%

24%

2014 2015 2016

Trending Data: Holiday Shopping Budgeting

Q: Which, if any, of the following have you… Ever done in the past / Plan to do this holiday season?

Have Done Plan To Do This Season

54%

38%47% 43%

56%

42%

2014 2015 2016

Shop for Holiday Gifts without a Set BudgetSet Aside a Budget for Holiday Shopping


Trending Data: Anticipated Shopping Breakout

Q: What percentage of your holiday shopping do you anticipate doing…NOTE: TOTALS MAY NOT ADD TO 100 DUE TO ROUNDING

Anticipated Shopping Breakout(Shown: Mean % of Budget)

2014 2015 201612% 9% 12%

39% 36% 33%

48% 55% 55%

In-Store Online - ComputerOnline - Mobile


Cash Major credit card

Debit card Reward points

Store credit card

Layaway Specialized savings account

59%

48% 47%

23% 22%

2%1%

53%49%

45%

22%18%

9% 6%

55%47% 46%

18% 17%9% 6%

2014 2015 2016

Trending Data: Anticipated Shopping Payment Method

Q: How do you plan to pay for your holiday gifts this year? [MULTI-SELECT]

Shopping Payment Method


Trending Data: Holiday Budget Saved vs. Charged

Percentage of Budget Saved vs. Charged(Shown: Mean % of Budget)

Have already saved Will save in coming months

Will charge to a credit card

52%

25% 23%

47%

31%22%

2015 2016

Q: Approximately what percent of that holiday shopping budget do you…


Trending Data: Identity Theft

Q: Please rate how concerned you are about identity theft this holiday season.Q: Where do you feel that your identity is most at risk this holiday season? (Asked if shopping both in-store and online, 2015 n=799, 2016 n=808)NOTE: TOTALS MAY NOT ADD TO 100% DUE TO ROUNDING

2015 2016

50% 46%

22% 22%

28% 31%

Very concernedSomewhat concernedNot concerned

2015 2016

55% 56%

30% 27%

14% 16%

In a retail storeOnline shoppingBoth

Concern About Identity Theft

Risk of ID Theft by Method


Check to see if the site is secure

Log out of personal accounts after shopping

Shop only on personal internet connections / networks

Go to websites directly instead of clicking on links

Don't click on links sent in emails

Don't store payment card info on retailers' websites

Pay with a credit card dedicated to online shopping only

61%

61%

59%

59%

54%

46%

28%

52%

51%

54%

48%

45%

35%

25%

55%

55%

54%

53%

50%

43%

29%

2016 2015 2014Protecting against Identity Theft

Trending Data: Online Data Protections

Q: Which, if any, of the following actions do you take to protect your identity when shopping online? (Asked if shopping online; 2014 n=899, 2015 n=864, 2016 n=867)


Trending Data: New Year’s Resolutions

Q: Which of the following are your 2016 / 2017 New Year’s credit resolutions? [MULTI-SELECT]

28%25%

21%18%

14% 14%

7%

25%

20%18% 18%

13%11%

6%

2015 2016New Year’s Credit

Resolutions

2016 Holiday Spending Survey

Economy & Finance

Transcript of 2016 Holiday Spending Survey