Bad Santa

The September survey of the First Command Financial Behaviors Index reveals that 57% claim they will spend less on gifts during the holiday season.

This is the second consecutive year that the First Command Financial Behaviors Index has pointed to leaner holiday spending. Results of the November 2008 survey indicated that 59% of American families planned on spending less during the holidays.

“Cutting back on holiday spending is a reasonable and sensible strategy in this uncertain financial environment,” Scott Spiker, CEO of First Command Financial Services, said in a statement. “Despite signs of a tentative financial recovery, three-quarters of survey respondents say they are stressed about the current economic situation. By tightening their belts and cutting spending, these families are giving themselves the gift of financial peace of mind.”

OTHER SURVEY FINDINGS
• 42% will set a maximum dollar amount on gifts.

• 41% will give fewer gifts to each person.

• 39% will give gifts to fewer people.

• Only 17% of respondents  do not plan to cut back at all during the holidays.

• On Oct. 6, the National Retail Federation announced that it is projecting a 1% decline in holiday retail spending. Deloitte Research is predicting flat sales for this holiday season.

• About half of September respondents said they have cut back on household spending by: reducing leisure activities (54%); reducing clothing purchases (51%); shopping at discount stores (46%); and, increasing coupon use (45%).

• The percent of families who say they have cut back for good totaled 23% in September, up from 14% in February. Roughly half of survey respondents say they have embraced frugality as a way of life.