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Nearly 4 in 10 parents expect to go deeper into debt buying holiday presents

Many will dig into emergency savings and skip paying bills to buy gifts: NerdWallet.
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For parents of kids under 18, here’s one thing they may get this holiday season that they didn’t ask for: A dip in their credit rating.

Nearly 4 in 10 parents (38%) expect to take on more debt than usual buying gifts, thanks to cultural expectations and the beseeching eyes of their progeny. Almost half (48%) of parents report feeling the need to keep up with the Joneses, often spending more on holiday gifts than they think they probably should.

Those are some of the findings of a Harris Poll conducted in September on behalf of NerdWallet. The survey was conducted online in September, polling 2,079 adults, 524 of them parents of kids under 18.

Parents of minor children will spend an average of $1,070 on gifts this year, while all other adults will spend $860.

Jingle bell shock: Those without children are feeling the pinch, too. Among all respondents to the survey, more than half (55%) reported that shopping for holiday gifts is pretty stressful. The NerdWallet analysis is that maybe it’s all good, though, since 32% feel it’s “important to purchase holiday gifts and experiences, despite the costs, to show others love.”

But even though holiday shopping may be rooted in showing love, for 10% of respondents, they expect to dip into their emergency funds, while 9% say buying gifts for friends and family means not paying monthly bills, like utilities, or even paying off their debts.

Speaking of debt, nearly 3 in 10 respondents (28%) say they’re still paying off credit card balances tied to last year’s holiday season.

Ah, debt. It’s the gift that keeps on giving.

Retail news that keeps industry pros in the know

Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.