Ramsey Solutions Third Quarter State of Personal Finances Study Reveals Impact of Inflation on Projected Vacation Spending

NASHVILLE, Tennessee–(COMMERCIAL WIRE)–As Americans head into the holiday season, they find themselves with an inflation rate of 6.2%, up five percentage points from a year ago. Ramsey Solutions’ Third Quarter State of Personal Finances study reveals that the daily finances of one in five Americans are significantly affected by inflation; however, 25% of Americans plan to spend more this holiday season than they did last year.

Those with consumer debt (28%) were more than twice as likely to say that inflation has had a significant impact on their daily finances compared to those without consumer debt (13%). Despite the impact of the economic climate, consumers anticipate spending $641 over Christmas alone, and more than half of them (56%) will turn to credit cards to do so.

“At a time when inflation is forcing Americans to stretch every dollar, many are tempted to take on unnecessary consumer debt,” said Rachel Cruze, personal finance expert at Ramsey Personality. “Getting into debt is never the answer. The key to winning with money is to set a budget and stick to it, no matter what’s going on around you.”

This holiday season, technology is at the top of the wish list, with 52% of consumers planning to spend on things like computers, phones and tablets. Forty-eight percent (48%) plan to buy clothes, 36% will look for deals on toys, 27% say they will buy appliances, and 23% plan to buy furniture. Millennials plan to buy home improvements this holiday season.

Other key findings:

  • Six out of 10 consumers don’t think Black Friday and Cyber ​​Monday deals are exclusive.

  • 42% of shoppers end up buying more than anticipated during Black Friday and Cyber ​​Monday.

  • 37% say they regret purchases they made on Black Friday or Cyber ​​Monday in the past.

  • One in four online shoppers have used buy now, pay later (BNPL) apps like Affirm or Klarna in the last three months.

  • 74% of users of BNPL services in the last three months have not made a payment.

  • In the last three months, 30% of Generation Z and 42% of millennials have used BNPL services.

  • 88% of Gen Z and 78% of Millennials have made no payments on their BNPL payment plan.

Read the full study at https://www.ramseysolutions.com/budgeting/state-of-personal-finance-2021-q3-research

About the study

The State of Personal Finance Study is a quarterly research study conducted by Ramsey Solutions with 1,004 US adults to gain an understanding of Americans’ personal finance behaviors and attitudes. The nationally representative sample was submitted from September 29, 2021 to Wednesday, October 6, 2021, using a third-party research panel.

About Ramsey Solutions

Ramsey Solutions is committed to empowering people in the areas of money, business, leadership and personal development using biblically based and common sense principles and education. Every day, Ramsey Solutions reaches millions with nationally syndicated radio shows and columns, nationally best-selling books, products and courses, and industry-renowned podcasts and video channels. Ramsey Solutions’ world-class speakers and authors provide inspiration, practical advice, and hope to audiences across the country. Ramsey Solutions and its team of more than 1,000 people are dedicated to getting work done that matters. For more information, visit ramseysolutions.com.

Add Comment