(WXYZ) — As we dive into the Holiday shopping season, recent studies reveal that inflation is having a significant impact. Many consumers are feeling the pinch, leading to a noticeable shift in spending habits.
According to a WalletHub.com survey, nearly 68 percent of people say they’ll be less generous this year, and nearly half of Americans still have debt from last year.
With inflation squeezing budgets, it’s no surprise that generosity is taking a hit. I spoke with holiday shoppers to explore how these economic pressures are impacting their holiday budgets.
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“We’re not looking to do anything spectacular this year with, everything the economy,” said Kenean Cargill.
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“I am cutting down on the number of recipients,” said Angela Randollph.
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“With this inflation going on it seems as though everything costs more money even if i am buying toys for my neices and nephews,” said Jalen Vaughn.
These reflections are echoed by nearly half of Americans still grappling with debt from last Holiday season, prompting a shift in how they approach gift giving.
“It’s sad because you want your kids to have nice things and you want them to enjoy the holidays but you’re so stressed out worrying about gifts,” Angela said.
Retailers are also adjusting. Many are rolling out promotions and discounts, hoping to appeal to shoppers who are prioritizing savings this year.
“We had the money,” Kenean said in reference to last year. “We had the funding to do so we didn’t have to make the sacrifices that we have to right now.”
It’s also harder now for those like Eileen Vallego, who are on a fixed income, are really feeling the impact this Holiday season.
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“We’re on a fixed income. We had some bills that came up unexpectedly,” Eileen told me “Life happens and that means less presents and less money to spend.”
Shoppers like Jaylen are having to navigate a challenging economic environment.
“Last year when I was Christmas shopping, I gradually bought stuff like around August, so I didn’t get (hit) too hard,” he said.
Others in the past have applied for another credit card and have gone into debt for Holiday shopping, but will not be doing so this year, instead practicing the mindfulness of spending.
“Absolutely not,” Kenean said. “If I did it would be to pay some bills.”
“I am trying so hard not to,” Angela said. “I almost got another Capital One card but I stopped myself. I am not going to do it because it’s so hard. Once you get into it it’s hard to climb out.”
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