Most shoppers will focus on holiday savings on Black Friday and Cyber Monday, CNET Survey shows
We haven’t even started celebrating Halloween yet, but it’s already time to start thinking about Christmas shopping. If you’re not among the 31% of shoppers who planned to start shopping this month’s Amazon, Walmart, and Target deals early, it’s time to start building your holiday gift list .
Prime Day is behind us, more holiday sales are on the horizon. According to the latest CNET survey, most shoppers (41%) are waiting for November’s Black Friday and Cyber Monday deals, especially on expensive items like TVs and gaming systems.
Most shoppers (72%) will also make a decision to afford this holiday season. If you haven’t already, it’s time to prepare your wallet. That may mean making some changes to your spending and saving habits to afford the big days ahead, like gifts and travel. Here are the trends to expect with the holiday sales in full swing, and what experts think about America’s holiday shopping strategy.
Check this out: How to hack Amazon Prime Day: shopping advice and deals
Key Takeaways
- Most shoppers (33%) plan to spend the same amount on holiday shopping this year (September 2024 to January 2025) as last year (September 2023 to January 2024), while 30% plan to spend less.
- Nearly 1 in 4 will spend less on non-essential purchases to fund the holiday, such as travel and dining.
- 46% pay for holiday purchases with a debit card, while only 24% choose a ‘buy now’, ‘pay later’ plan or a credit card that they plan to pay off over multiple billing cycles.
Most people make financial sacrifices to afford the holidays
Most American adults are planning or have already made a financial trade-off or sacrifice for the upcoming holidays. Here’s a closer look.
Some shoppers plan to buy fewer gifts or shop for fewer people (30%). Bernadette Joy, a personal finance coach and member of the CNET Money Expert Review Board, wasn’t surprised to hear this. Joy said since the pandemic there has been less pressure on people to host large gatherings that require buying gifts for more than 30 people. Instead, many opt for more intimate gatherings that require fewer gifts.
“There is a trend to be more thoughtful about the people you want to invest in,” says Joy.
It’s no fun having to make tradeoffs to afford gifts, but I enjoyed hearing that consumers are focused on not starting the new year with holiday debt. According to the survey, 1 in 4 people are also spending less on non-essential items, such as travel, entertainment and dining, to better afford the holidays.
Joy understands that making difficult decisions to finance gifts and events is not ideal, but it is better than leaning on financing. She encourages shoppers not to put holiday purchases on a credit card. Use savings or cash instead. Even if you deplete your savings, that’s better than accumulating debt, she added.
Many shoppers start saving early
Saving money is always important during the holidays and 72% of shoppers plan to use at least one method to save more during the holidays. Most said their primary savings strategy will be to take advantage of pre-holiday sales. Russell Holly, editor-in-chief of CNET, said there’s a growing trend to finish holiday shopping before Thanksgiving — and retailers are getting on board.
Three in 10 shoppers plan to start their holiday shopping early, and 41% plan to take advantage of early sales this month, such as Amazon’s Prime Day sale (October 8-9), Best Buy, Walmart or Target this month.
Shopping early can help you avoid the stress of holiday spending if you already have cash set aside.
“October shopping events are great for holiday items like small kitchen appliances, batteries and wrapping paper and even festive lights,” said Holly, “as well as end-of-season discounts on outdoor hardware and smart home technology.”
Not everyone turns to early sales to close deals. CNET’s survey found that the same number of shoppers (41%) will wait until November to take advantage of Black Friday and Cyber Monday sales. The later sales may give you more time to put money aside for your shopping list, but it’s also worth waiting if you want to buy an expensive tech item or home appliance.
“If you’re looking for discounts on televisions, laptops, phones and home appliances, it’s best to wait until Cyber Week,” Holly said.
Fewer shoppers rely on financing
It’s easy to fall into debt when holiday gifts, events and travel expenses pile up. 64% of Americans plan to pay for all or some of their holiday purchases with cash, while 46% choose to use a debit card, similar to the response rate from last year’s holiday survey. Experts love that.
Greg Murseta certified financial planner and CEO of BusyKid recommends shopping with a debit card as a self-control tool. Without a line of credit tempting you to overspend, you’re more likely to stay within your budget. A credit card makes it too easy to “ignore the consequences,” he said.
While most shoppers choose to use cash or debit cards, many will still use credit cards and BNPL plans for all or some of their purchases. We found that 24% plan to finance their holiday purchases with these methods, while 31% plan to use a credit card to earn rewards and expect to pay them back on time.
Evan Zimmer, CNET’s credit card editor, said it only makes sense to use a credit card for holiday purchases if you can afford to pay off the balance in full right away.
“You would earn rewards that you could then spend on a trip or other gift, and you wouldn’t have to worry about expensive interest charges,” he said. “Using a credit card for all your planned and budgeted holiday spending can also be a great way to earn the welcome bonus of a new card.”
If you’re not sure you can pay the balance in full, Zimmer says to avoid credit cards. The interest and potential late fees that could accrue will quickly offset the value you earn from credit card rewards.
BNPL subscriptions are another popular payment method during the holidays that seem more secure than credit cards. These financing plans often have hidden costs and can quickly put you in a debt cycle. Murset and Joy do not recommend their use, especially for holiday purchases.
If you plan to use a BNPL plan, Joy says it’s best to make the repayment plan a clear part of your budget. She is also discouraging customers from carrying credit card or BNPL subscription debt into the new year if possible.
Staying out of debt is more important than getting the best deal
The holidays can add up quickly. Before turning to financing, Murset recommends working with your family and friends to set expectations about gift shopping and think about ways to approach holiday shopping differently. This could include agreeing on a lower holiday budget for each recipient or giving creative, inexpensive gifts, such as discount vouchers for babysitting or dog walking.
Joy agrees. She suggests exploring inexpensive gift ideas such as saving antique items with sentimental value, donating family heirlooms, or re-gifting an unopened item you received but never used. You can also talk to your friends and family about hosting a White Elephant or a Secret Santa so you only buy a gift for one person instead of many.
When looking for new gifts, set a clear budget so that you aren’t tempted to overspend when there are sales and offers.
Ultimately, remember that it’s not worth ruining your finances by buying more gifts. “Don’t buy it if you don’t have money,” Murset said. “I know it’s so boring, but it’s absolutely the right thing to do.”
