Fewer Americans Cutting Back on Holiday Spending this Year

The November First Command Financial Behaviors Index^TM reveals increased feelings of financial security during the holiday season this year as evident from holiday spending. The Index, commissioned by First Command and conducted by Sentient, examines financial behaviors, attitudes and intentions among U.S. consumers ongoing since February 2008.
The results of the November First Command Financial Behaviors Index^TM show that only 69 percent of Americans report cutting back in some way on holiday spending this year, a decrease of six-points from September 2010, and a decrease of nine-points from last year (November 2009). This change in holiday spending is due in large part to increased feelings of being financially secure and decreased feelings being financially stretched.
Middle-class consumers are also more comfortable using their credit card for holiday purchases this holiday season. While two-thirds of Americans are using cash to pay for their holiday purchases this year, over one-half percent of consumers (55%) are using a credit card to pay for purchases, an increase of 6-points from 2009. Americans plan to use their credit card primarily to purchase electronics (77%), while cash will be mainly used for gift cards (51%).
These recent changes in holiday spending behavior may point to Americans’ renewed sense of financial confidence. Looking at consumer spending habits over the next few months will be telling as to if this increased sense of financial security continues.
For more information about the First Command Financial Behaviors Index^TM, please visit their website.