Unfortunately, the average American consumer will find it increasingly difficult to make ends meet in 2025. Middle-income households have seen a 23.4% increase in spending on items across the board and a 31.6% increase in necessities specifically. Consequently, the average share of income available to American consumers is only 4.9%, which is at a sixteen-year low.
What does this mean for the holidays? You would naturally think that less discretionary income would mean that spending on gifts would decrease. While this is true for Generation Z and Millennial consumers, it is actually predicted that Generation
It is estimated that 80% of Christmas shopping takes place towards the end of Cyber Monday. Moreover, about 40% of holiday gift shopping is traded between the period between Thanksgiving and Cyber Monday, when many sales occur. Online purchases also have the option to integrate Buy Now, Pay Later (BNPL) services. These services make spending more accessible by breaking the cost of an item into simple installments. BNPL also has a wide range of applications from electronics to furniture and clothing items. Ultimately, today’s financial uncertainty means that getting your family’s gifts will look a little different this year. To ensure you have enough budget, planning ahead financially is an essential step during the holiday season.
Source: Equifax
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