Holiday shoppers bracing for higher costs, survey finds
NerdWallet: 65 percent of holiday shoppers are worried about increased costs due to tariffs
(InvestigateTV) — As the most wonderful time of the year approaches, excitement is mixed with anxiety over inflation and high prices. Still, most shoppers expect to spend more than they did last year.
According to NerdWallet, holiday shoppers are expecting to spend on average nearly $200 more this year than they spent last year.
Sara Rathner with NerdWallet said a lot of this has to with concerns over how much tariffs are going to affect the prices of holiday gifts.
Rathner suggested giving yourself plenty of time to compare prices, check multiple stores, and take advantage of seasonal sales to cut costs on gifts and decorations.
“We found that 31% of holiday shoppers are still paying off debt from 2024’s holiday season. But 10 percent of shoppers are still paying off debt from multiple holiday seasons,” she shared. “So, taking on debt, this time of year is something that can haunt you like the ghost of Christmas past not just for a year but for several years to come.”
The survey also found also found that about 18 percent of shoppers are planning to use a Buy Now, Pay Later plan to purchase gifts this year.
Rathner said the payment option can be a helpful tool to spread out costs, but it also carries risk. Missing a payment can negatively affect your credit score.
“That might line up with your paychecks from work a bit better than one lump sum payment, but you want to be really strategic about buy now, pay later because you can enter into multiple plans at the same time, and it can become easy to get overwhelmed,” she cautioned.
The study also found that 28 percent of shoppers plan to create a holiday budget – a strategy Rathner supports because it helps set clear spending limits and keeps shoppers accountable.
She added that shopping with a plan in mind makes it easier to compare prices and take advantage of sales without going over budget.
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