Seven in 10 Americans living paycheck to paycheck say they expect to spend the same amount or less this holiday season than last year, according to a new report. Forbes Advisor Survey.
The survey found that nearly half (47%) said they planned to spend the same amount on holiday shopping this year, while about 18% said they planned to spend less.
Another 30 percent of Americans who live paycheck-to-paycheck, meaning they earn just enough to cover their expenses without leaving anything behind, expect to spend more this holiday season.
More than a third (35%) expect to spend between $251 and $700 on holiday presents, and 38% plan to spend between $751 and $1,500, according to the Forbes survey.
Some 52% of people living paycheck to paycheck said they would reduce or dip into savings to pay for holiday shopping. The same section also said they would rack up credit card debt to buy gifts.
Two in five Americans surveyed reported living paycheck-to-paycheck, and 49% said their current financial situation includes paying rent, mortgage, insurance, utilities, etc. They answered that their monthly bills are high.
About 44% cited low income as a factor, and 46% cited lack of budgeting or financial planning, according to the survey.
The majority of Americans have less than $2,000 in emergency savings. This is the average amount needed to cover her monthly bills in the United States. Only about 20 percent have more than $2,000 in savings.
Among Americans living paycheck to paycheck, the percentage of people who have one month's worth of emergency savings is even lower, at about 15%, the survey found. 5.5% have no savings at all.
The Forbes Advisory survey was conducted by market research firm Onepoll between October 24 and October 26 among 3,000 Americans, and had a margin of error of 1.8 percentage points.
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