Despite pandemic and job fears, many consumers plan to spend as usual this holiday shopping season, Credit Sesame finds
SAN FRANCISCO, Calif. — October 29, 2020 — Credit Sesame today released new survey findings that reveal most consumers say there’s a clear link between who they vote for and their personal financial situation. According to the survey, 23 percent say it influences their voting choice a lot, while 25 percent say a moderate amount, and 16 percent say a little. Only a third (35 percent) of respondents say their personal financial situation has no impact on their voting choice.
The survey also indicates that many consumers are not letting the pandemic affect their holiday spirit or spending. In fact, nearly 20 percent said that they love the holidays and nothing will prevent them from gift-giving.
According to the survey, 46 percent of consumers plan to spend the same amount of money on gifts this year compared to previous years, and nearly 20 percent plan to spend even more. More than 40 percent of respondents either lost a job or have changed their spending due to fears about job stability. Still, among those who lost their jobs due to the pandemic, 34 percent are prepared to stick with or surpass their usual holiday spending budgets.
“That so many people say their personal financial situation influences their voting choice simply underscores how fundamental financial health is,” said Shazia Virji, Vice President at Credit Sesame. “As we go into this holiday season under the shadow of the pandemic, it’s important for people to remember that they don’t have to jeopardize their financial health to show their loved ones that they care.”
While many consumers still plan to spend as they normally would, the survey shows that more than half of respondents don’t save at all for the holidays. This means that the majority of consumers either only spend the cash they have available at the time or they rely mostly on credit cards (totaling 71 percent). Only 21 percent use a combination of both cash and credit.
“Your cash and credit are intertwined when it comes to your overall financial health, so it’s important to find a balance between using the two,” said Virji. “That’s why Credit Sesame took the unique step of rewarding customers with cash rewards when they improve their credit score. It’s important to actively manage cash and credit to maximize both.”
Additional key findings from the survey include:
- Donations are on the rise this year. Not only are consumers still spending money on gifts, but nearly 75 percent intend to donate to charity, and 28 percent plan to give more than usual. Even among those who experienced unemployment this year, 70 percent still plan to donate.
- Despite varying degrees of lockdowns by state, consumers are adopting similar shopping habits across the country. Consumers in states with stricter COVID regulations, including California and New York, intend to spend and donate similarly to consumers in less-strict states like Florida and Texas.
- Consumers are willing to spend more for free shipping. More than half of consumers are willing to spend more money on products if it means they can save on shipping costs.
About Credit Sesame
Credit Sesame’s mission is to help consumers work toward financial stability and ultimately create better opportunities for themselves and their families. Strong credit health is inextricably linked to financial health and stability, and with the launch of Sesame Cash, Credit Sesame will help consumers manage both. Credit Sesame has helped millions of consumers improve their credit scores, increase their approval odds, lower the cost of credit and save money. Credit Sesame is funded by leading venture capital firms and strategic investors, including Menlo Ventures, Inventus Capital, Globespan Capital, IA Capital Groups, NortonLifeLock, Capital One Ventures, Stanford University, and ATW Partners, among others. Credit Sesame currently operates in the U.S. and Canada. For more information on Credit Sesame, visit www.creditsesame.com and follow on Facebook, Twitter and LinkedIn.
This survey was conducted by SurveyMonkey, on behalf of Credit Sesame, among 520 general respondents across the United States in October of 2020.