Blogging for Change

Consumers say they will spend less this season

by Kim McGrigg on
12/2/2010
in Budgeting and Building Savings

Even though millions of consumers hit the Black Friday and Cyber Monday sales, others instead found a lump of coal in their pre-holiday shopping stocking.

The November online poll hosted on the National Foundation for Credit Counseling (NFCC) website revealed that more than 90 percent of respondents will either spend less or nothing at all on holiday purchases this year.

“This poll is sobering, underscoring what we already knew: the recession may technically be over, but it is alive and well in the homes of many Americans,” said Gail Cunningham, spokesperson for the NFCC. “Times continue to be hard, with the holiday season only serving to exacerbate the financial strain.”

The November online survey question and responses are as follows.

This holiday season I will:

A. Spend as I did last year because my financial life is stable = 7%

B. Cut back on spending, since I am worse off financially this year = 57%

C. Spend more than last year because I am in a better financial position = 2%

D. Not spend at all, because I anticipate further financial distress = 34%

Close to 2,400 responses sends a strong signal, and it’s not one that retailers necessarily want to hear. Possible implications of the survey suggest:

  • Those who have already made purchases may have been bargain-hunting, and only shopped early because they believed that doing so would yield the best buys; or
  • Consumers shopped early, and have exhausted the amount allocated for holiday shopping, thus no further spending will occur.

The poll suggests that consumers still do not feel confident enough about their financial future to begin spending, and when you couple these results with the NFCC’s October poll which indicated that 70 percent of consumers intend to pay for holiday purchases by using cash or a debit card, it becomes clear that the intention is to control spending this holiday season.

Note: The NFCC’s November Financial Literacy Opinion Index was conducted via the homepage of the NFCC Web site (www.DebtAdvice.org) from November 1-30, 2010 and answered by 2,396 individuals.

MMI is a member of The National Foundation for Credit Counseling (NFCC).  Founded in 1951, the NFCC is the nation’s largest and longest serving national nonprofit credit counseling organization. The NFCC’s mission is to promote the national agenda for financially responsible behavior and build capacity for its Members to deliver the highest quality financial education and counseling services. For more information visit NFCC.org.

Kim McGrigg is the former Manager of Community and Media Relations for MMI.

Recommended Articles

Man sitting in front of pile of bills, trying to understand his options.
Professional Budget Advice
Make the most of every dollar and start building toward your dreams! Budget counseling is FREE and available 24/7.
Learn More
Learn more
  • Better Business Bureau A+ rating Better Business Bureau
    MMI is proud to have achieved an A+ rating from the Better Business Bureau (BBB), a nonprofit organization focused on promoting and improving marketplace trust. The BBB investigates charges of fraud against both consumers and businesses, sets standards for truthfulness in advertising, and evaluates the trustworthiness of businesses and charities, providing a score from A+ (highest) to F (lowest).
  • Financial Counseling Association of America Financial Counseling Association of America
    MMI is a proud member of the Financial Counseling Association of America (FCAA), a national association representing financial counseling companies that provide consumer credit counseling, housing counseling, student loan counseling, bankruptcy counseling, debt management, and various financial education services.
  • Trustpilot Trustpilot
    MMI is rated as “Excellent” (4.9/5) by reviewers on Trustpilot, a global, online consumer review platform dedicated to openness and transparency. Since 2007, Trustpilot has received over 116 million customer reviews for nearly 500,000 different websites and businesses. See what others are saying about the work we do.
  • Department of Housing and Urban Development - Equal Housing Opportunity Department of Housing and Urban Development
    MMI is certified by the U.S. Department of Housing and Urban Development (HUD) to provide consumer housing counseling. The mission of HUD is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD provides support services directly and through approved, local agencies like MMI.
  • Council on Accreditation Council On Accreditation
    MMI is proudly accredited by the Council on Accreditation (COA), an international, independent, nonprofit, human service accrediting organization. COA’s thorough, peer-reviewed accreditation process is designed to ensure that organizations like MMI are providing the highest standard of service and support for clients and employees alike.
  • National Foundation for Credit Counseling National Foundation for Credit Counseling
    MMI is a longstanding member of the National Foundation for Credit Counseling® (NFCC®), the nation’s largest nonprofit financial counseling organization. Founded in 1951, the NFCC’s mission is to promote financially responsible behavior and help member organizations like MMI deliver the highest-quality financial education and counseling services.