Press
Surveys says consumers likely to increase holiday spending
EDWARDSVILLE, IL (December 9, 2013) — More consumers plan to spend more than last year, and fewer consumers less than last year, according to the 14th annual holiday spending survey conducted by the Consumer Federation of America (CFA) and the Credit Union National Association (CUNA).
Since 2012, the percentage who said they would spend more than the previous year rose from 12 to 13, while the percentage who said they would spend less declined from 38 to 32. These changes continue the trend from 2011, when only 8 percent said they would spend more while 41 percent said they would spend less. (Consumers almost always spend more than they say they plan to spend, so year-to-year comparisons are most meaningful.)
The annual survey has always been developed by CFA and CUNA and administered to a representative sample of adult Americans by ORC International. This year, 1002 persons were interviewed by landline or cell phone during November 7-10. The margin of error is plus or minus three percentage points.
“The survey suggests that holiday spending will increase at least as fast as last year. It is also encouraging that fewer Americans see their economic status as worsening, despite on-going federal budget issues in Washington,” said Bill Hampel, Chief Economist for the Credit Union National Association.
The intention of consumers to increase holiday spending from last year is consistent with, and may well reflect, perceived improvement in their financial situation. The five percentage point gap between those who said their financial situation was better (24%) and those who said it was worse (29%) was the smallest since CFA and CUNA began asking the question in 2009. In 2011, this gap was 18 percentage points (19% better, 37% worse).
Federal Budget Controversies Act to Restrain Spending
Survey respondents were asked if “recent controversies over federal government spending and borrowing” had affected their holiday spending plans. About one-half (51%) said that they had, with 18 percent saying “very much,” 16 percent “somewhat,” and 16 percent “a little.” Lower-income families were more likely to be affected by federal budget problems than high-income families. Nearly three-fifths (59%) of those in households with incomes under $50,000, but less than two-fifths (37%) of those in households with incomes above $100,000, said they were affected.
“Lower-income households are more dependent on federal jobs and expenditures than high-income households,” noted Stephen Brobeck, CFA’s Executive Director. “While Food Stamp expenditures are being cut, stock prices have soared,” he added.
Gap Between Affluent and Poor Continues to Widen
The survey found continuing evidence of the widening gap between the affluent and the poor. Over one-third (35%) of those with household incomes under $50,000, but less than one-fifth (17%) of those with incomes above $100,000, said their financial position was worse than a year ago. One reason for this difference may be concern about making monthly debt payments, including mortgages. Nearly two-thirds (65%) of those with incomes under $25,000, and over half (56%) of those with incomes between $25,000 and $50,000, yet less than one-quarter (23%) of those with incomes over $100,000, said they were concerned about making these debt payments. This concern about paying down debt is reflected by responses to a question about use of a financial windfall. When asked how they would use an unexpected windfall of $5,000, over half (51%) of those with incomes below $25,000, but less than one-third (32%) of those with incomes above $100,000, said they would use most of it to pay down debt.
Scott Credit Union Tips for Spending and Borrowing Prudently
Scott Credit Union suggests the following tips for spending prudently and not taking on too much debt.
• Plan: Make a list of what you want to purchase and how much this should cost.
• Comparison Shop: Compare prices on-line and in stores.
• Pay Off Debts Quickly: Carrying credit card debt is fairly expensive.
• Start Saving: Ask Scott Credit Union to automatically transfer funds into a savings account each month.
“We encourage our members to plan their spending wisely,” said SCU President & CEO Frank Padak. “We are also offering a holiday loan that may help them through this time of year. It is a personal loan of up to $2,000 that they can pay off over the next 12 months.”
“We also always encourage people to save money each month by paying themselves first,” Padak added. “Even if you put 10 or 20 dollars in a savings account each time you get paid, that will start to add up. We also have a Holiday Club Savings Account that our members can put money into to help with the next year’s holiday spending.”
Scott Credit Union is a not-for-profit financial cooperative that is member owned. The credit union recently gave over $1.3 million back to members through a bonus dividend and loan interest rebate.
“We want area residents to know that doing business with a credit union is a smart choice,” Padak said. “Our recent bonus dividend and loan interest rebate are examples of the value of membership with Scott Credit Union. Traditional banks don’t just give earnings back to their customers. That is the great thing about a cooperative. When we are successful, everyone benefits. We simply provide the best value to the consumer.”
Scott Credit Union is open to anyone who lives or works in a 17 county area, including Madison, St. Clair, Monroe, Randolph, Perry, Franklin, Jefferson, Washington, Clinton, Marion, Bond, Macoupin, Montgomery, Fayette, Effingham, Williamson, and Jackson counties. Anyone who lives or works in St. Louis County, Missouri also can open accounts at SCU. Additionally, anyone active or retired military also can have accounts with Scott Credit Union.
Scott Credit Union currently has 15 area locations: Scott Air Force Base, East Belleville, Fairview Heights, Collinsville, O’Fallon, Edwardsville, Waterloo, Highland, Caseyville, West Belleville, Millstadt, Mascoutah, Troy, Wood River and its Home Office in Edwardsville.
For details on opening accounts at Scott Credit Union, visit www.scu.org, call 1-800-888-4728, or stop by any of the credit union’s branches.