- TD Bank, a US subsidiary of Toronto-Dominion Bank (TSX:TD), has released its 2024 Merry Money Survey on holiday spending
- 52 per cent of respondents are reducing spending because of recession anxieties, while 42 per cent are basing their holiday spending on potential impacts from Donald Trump’s recent election as US president
- TD Bank is one of the 10 largest banks in the US by assets
- Toronto-Dominion Bank stock has given back 8.17 per cent year-over-year but remains up by 1.41 per cent since 2019
TD Bank, a US subsidiary of Toronto-Dominion Bank (TSX:TD), has released its 2024 Merry Money Survey on holiday spending, detailing how 52 per cent of respondents are reducing spending because of recession anxieties, while 42 per cent are basing their holiday spending on potential impacts from Donald Trump’s recent election as US president.
Despite these reservations, 79 per cent of the over 2,000 U.S. consumers surveyed from Sept. 25-29, 2024, are confident in their ability to make it through the holidays with budgets intact, with 64 per cent intending to spend less than US$600 on gifts. Here’s a breakdown of key findings from the survey:
A budget-conscious holiday season
- 82 per cent of respondents are actively looking for offers and price reductions to inform their shopping.
- 55 per cent plan to make most of their purchases on Black Friday.
- 81 per cent have considered ways to reduce their budgets.
- 33 per cent are reducing their gift spending compared to years prior.
- 22 per cent are saving extra money in anticipation of the holidays.
- 61 per cent are cutting back on discretionary spending such as dining out to make sure their families have the holidays they deserve.
- When it comes to going over budget, Gen Z respondents came out ahead at 38 per cent, followed by 30 per cent for Millennials, 25 per cent for Gen X and 17 per cent for Baby Boomers.
The gift of experience
- 45 per cent of respondents plan to gift experiences instead of physical items driven by leadership from younger generations, including 68 per cent of Gen Z and 61 per cent of Millennials.
- 55 per cent of those earning US$100,000 or more are opting for experiential gifts.
- 53 per cent of those who will gift an experience are planning a meal or evening out.
Jolly technology and modern finance
- 42 per cent of shoppers indicate their debit cards as their preferred method of payment.
- 34 per cent will use credit cards drawn to their perks, rewards, cash-back features, fraud prevention and purchase protection.
- 18 per cent will stick to cash and cheques for their holiday spending. Relatedly 52 per cent of those who plan to give cash gifts have a specific vision for what recipients will use the money for.
- 19 per cent are considering using generative artificial intelligence (AI) for holiday shopping ideas this year.
- 69 per cent indicated a preference for brands that offer AI or virtual reality features.
Festive financial fitness
- 73 per cent of respondents feel financial anxiety, though a majority are determined to control their spending.
- 86 per cent who have overspent during past holidays have considered adjusting future holiday spending.
- 62 per cent of credit card users intend to pay off their holiday shopping balances in full by January 2025.
- 17 per cent have adjusted contributions to retirement savings to better accomodate holiday spending, including 25 per cent of Gen Z and Millennials, 14 per cent of Gen X and 7 per cent of Baby Boomers.
Leadership insights
“The uncertainty of an election season, coupled with the current volatile economic environment, is making this holiday season even more stressful for consumers,” Courtney Mitchell, retail market president for Metro PA/South Jersey Region at TD Bank, said in a statement. “That’s why trying to stick to a budget remains one of the most important steps consumers can take to help ease some of the stress that comes with the holiday shopping season.”
“Budgeting, maximizing deals and strategically using credit card rewards are all great ways to keep spending in check,” Mitchell continued. “By planning ahead and taking advantage of available offers, people can enjoy the holidays without the financial strain that can follow the season.”
“During the holiday season, shoppers are not only looking for great deals but also for added protections that provide peace of mind,” added Chris Fred, head of credit cards and unsecured lending at TD Bank. “Using a credit card for holiday spending can offer shoppers benefits like fraud and purchase protection, cell phone coverage, emergency card replacement and identity theft protection, allowing them to shop confidently knowing their purchases and personal information are secure.”
About TD Bank
TD Bank is one of the 10 largest banks in the US by assets providing over 10 million customers with a full range of retail, small business and commercial banking products and services at more than 1,100 locations.
Toronto-Dominion Bank stock (TSX:TD) is down by 0.91 per cent trading at C$78.15 per share as of 11:33 am ET. The stock has given back 8.17 per cent year-over-year but remains up by 1.41 per cent since 2019.
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(Top photo of a piggy bank making a Christmas budget: Adobe Stock)