Inflation Causing 81% to Cut Back on Holiday Plans


Inflation Causing 81% to Cut Back on Holiday Plans

Summary : Inflation Causing 81% to Cut Back on Holiday Plans.

An overwhelming majority, 81%, of Americans plan to cut back on their holiday spending/savings due to inflation, and 63% have no travel plans for the holidays.

Inflation at a rate not seen in four decades, 8.2%, has forced 45% of people to dip into their savings in the past three months, up from 38% last quarter and 33% last year.

“While many have proven to be resilient,” says Mike Fanning, head of MassMutual U.S., “our latest index reveals the increasing toll of inflation along with dampening prospects for the holiday season.”

The holiday spending survey mirrors a similar one by Personal Capital that found 25% of Americans plan to skip Thanksgiving dinner this year due to soaring inflation.

An overwhelming majority, 81%, of Americans plan to cut back on their holiday spending/savings due to inflation , and 63% have no travel plans for the holidays.

These are two of the findings from the latest MassMutual Consumer Spending & Saving Index.

Although it is not yet known whether or not the nation is officially in a recession, 84% of Americans are already worried about what impact a recession would have on their daily lives, according to the MassMutual survey of 1,000 adults. That’s up from last quarter ’s reading of 80%.

Forty one percent of Americans are stressed about their personal finances, up from 30%.

Inflation at a rate not seen in four decades, 8.2%, has forced 45% of people to dip into their savings in the past three months, up from 38% last quarter and 33% last year .

Of those who have withdrawn from their savings accounts, 55% say it was due to inflation ’s impact on their cost of living, and 52% used the money to pay bills.

“While many have proven to be resilient,” says Mike Fanning, head of MassMutual U.S., “our latest index reveals the increasing toll of inflation along with dampening prospects for the holiday season.” The holiday spending survey mirrors a similar one by Personal Capital that found 25% of Americans plan to skip Thanksgiving dinner this year due to soaring inflation .

Forty-two percent will ask their guests to help cover costs, and 52% will ask their visitors to bring a dish or an item for the dinner table. Fifty-seven percent are keeping their Thanksgiving Day gathering small this year, and 53% will be serving fewer dishes .Eighty-eight percent of Americans said they are cutting at least one dish this year to save money, according to the survey of 1,002 adults by the online wealth management company.