Even if they’ve made a list and checked it twice, that doesn’t stop many Americans from making spur-of-the-moment purchases during the winter holidays. More than half (54 percent) of U.S. adults made at least one unplanned/impulse purchase last holiday season, according to Bankrate’s new Impulse Shopping Survey.
Making a budget ahead of the holiday season, instead of impulse spending, is a smart way to save money. But sometimes, a Black Friday sale is too hard to resist. Bankrate’s data shows who impulse shops during the holidays — and why they’re spending that extra money.
I’m a big believer in planning ahead for the holidays. For example, you probably still have four or five paychecks between now and the end of the year. Set money aside from each of them to build a holiday fund.
— Ted Rossman, Bankrate Senior Analyst
Bankrate’s key findings on impulse shopping during the holidays
Bankrate data center
Every week, Bankrate publishes proprietary surveys, studies and rate data, providing the latest data-driven insights on the state of Americans’ personal finances — including credit card debt, homeownership, insurance, retirement and beyond.
See more
Younger adults are most likely to make holiday impulse purchases
Even if you usually wait before making a big purchase, finding the perfect gift for someone can make impulse purchases too hard to resist. Nearly one-third (31 percent) of Americans made an unplanned/impulse purchase for their family members; 15 percent made one for friends; and 5 percent made one for acquaintances.
Around one-quarter (28 percent) of people made an unplanned/impulse purchase for themselves:
Source: Bankrate survey, Sept. 30, 2024-Oct. 2, 2024
Note: Respondents could select more than one response.
Generally, younger Americans were more likely than older Americans to have made an unplanned/impulse purchase last holiday season:
- Gen Zers (ages 18-27): 70 percent
- Millennials (ages 28-43): 65 percent
- Gen Xers (ages 44-59): 50 percent
- Baby boomers (ages 60-78): 41 percent
That’s not all: Younger Americans were also likelier than older generations to have made an unplanned/impulse purchase for themselves:
- Gen Zers: 44 percent
- Millennials: 39 percent
- Gen Xers: 24 percent
- Baby boomers: 12 percent
More than two-thirds (69 percent) of parents of children under the age of 18 made an unplanned/impulse purchase last holiday season — compared to 48 percent of parents of adult children and 54 percent of non-parents.
Additionally, people who report a household income of $50,000 or more were more likely to have made an unplanned/impulse purchase last holiday season, compared to those below that income threshold:
- Less than $50,000 per year: 49 percent
- $50,000-$79,999: 61 percent
- $80,000-$99,999: 65 percent
- $100,000 per year or more: 62 percent
While impulse shopping is common, that doesn’t mean Americans aren’t trying to be thoughtful about their holiday spending. In early August 2024, about half (48 percent) of holiday shoppers said they planned to begin holiday shopping before the end of October, according to Bankrate’s Early Holiday Shopping Survey. One-third (33 percent) of holiday shoppers plan to spend less on holiday shopping than they did last year.
We asked: When did you start, or plan to start, winter holiday shopping (for gifts, decorations, etc.) this year?
| By the end of August | 12% |
|---|---|
| September | 13% |
| October | 24% |
| November | 37% |
| December | 15% |
| Source: Bankrate survey, August 5-7, 2024 |
Impulse shoppers often buy something just because it’s a good deal
A large portion of Americans were chasing deals last holiday season. More than 2 in 5 (44 percent) people who made unplanned/impulsive purchases last holiday season bought it because they thought it was a good deal or because it was on sale. Others thought it made a good gift for someone else (38 percent), wanted to treat themselves (29 percent) or the purchase was something they had previously considered buying (27 percent):
Source: Bankrate survey, Sept. 30, 2024-Oct. 2, 2024
Notes: Respondents could select more than one response. Responses are of U.S. adults who made at least one unplanned/impulse purchase last holiday season.
Social media influences many younger Americans’ holiday shopping
Nearly 1 in 4 (22 percent) people who made unplanned/impulse purchases last holiday season were influenced by social media in some way:
- Influenced by posts from brands/advertisers: 13 percent
- Influenced by posts from influencers: 10 percent
- Influenced by posts from friends/family/acquaintances: 10 percent
A slim percentage (7 percent) were influenced to make an unplanned/impulse purchase from other advertising, such as TV, radio, online ads or billboards.
Perhaps unsurprisingly, Gen Zers are the likeliest generation (36 percent) to say they were inspired to make an unplanned/impulse purchase from social media, followed by millennials (31 percent), Gen Xers (14 percent) and baby boomers (6 percent).
The bottom line
Whether you’re buying a treat for yourself or loading up on gifts for the family, it’s always possible to intentionally manage your holiday spending. To stay on track, Bankrate Senior Industry Analyst Ted Rossman advises people to budget ahead of time for any potential impulse purchases.
“If you’ve set money aside for it, you have more freedom to spend without overdoing it or taking on expensive credit card debt,” Rossman says.
Another frugal tip to consider is taking advantage of unused gift cards. According to Bankrate’s Gift Cards Survey, 34 percent of Americans have lost money through a gift card misstep, such as losing the card or letting it expire. Rifle through your old gift cards; you might be surprised what you find.
“Close to half of Americans have at least one of these, and among them, the average is a whopping $244. Finding and using your old gift cards is a great way to treat yourself or someone else,” Rossman says.
How to manage financial stress this holiday season
Does the thought of holiday shopping make you break into a cold sweat? Bankrate has the latest guide to help you navigate the holiday season while keeping to your budget.
Read more
Read the full article here
