FILE-A person counts money in their hand. (Photo by Costfoto/NurPhoto via Getty Images)
Christmas is a few weeks away and as you’re pulling out the tree and ornaments, it's likely you’re contemplating what to get your friends and family for the holidays.
And while these wish lists can change by the day, one gift that people are craving is cash.
In a new Lending Tree survey, 49% of people participating in gift-giving wish to receive cash as a gift at some point this holiday season and this response is high among people with children younger than 18 (61%), Gen Zers (58%) and millennials (57%).
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Another 39% said they would swap out their gifts for an equal cash value if it was possible. When asked in the poll what they would do with a cash gift, 27% of gift-givers said they are using the money to pay bills and another 27% said they would buy themselves something nice.
Moreover, 18% of respondents said they would use the cash for savings, 11% would buy someone else something nice, 9% would use the money to pay down debt, and 4% said they would invest it.
To gather their data, LendingTree worked with QuestionPro to conduct an online survey of 2,049 consumers ages 18 to 78 from Oct. 14 to 15, 2024.
Gift-givers think Christmas is worth the cost
Among those giving gifts, 47% plan to spend $100 to $499 on all their gifts. Meanwhile, 23% plan to spend $500 to $999.
Approximately 42% of gift-givers expect to spend the most money on their kids, followed by significant others (19%), parents or guardians (9%), siblings (9%) and friends (8%).
Gift-givers admit to going into debt
Despite the increased cost of gifts during the holiday season 69% Americans say they will take part in gift-giving this year, led by baby boomers ages 60 to 78 (77%), people with children 18 or older (77%) and individuals earning a salary of $50,000 to $99,999 (75%).
For people giving gifts this year, approximately 37% admitted to feeling pressure to do it, specifically among Gen Zers ages 18 to 27 (59%), while family (15%) is the top source of pressure compared to 10% who blame friends, while another 13% blame both.
Separately, 63% of Americans who’ve gone into debt for holiday gifts have regretted it, with this high among Gen Xers ages 44 to 59 (71%). Some admitted to overspending to impress someone, while 70% of people participating in gift-giving this year said they wouldn’t be comfortable knowing that someone else went into debt to buy them a gift.
Some plan to skip giving gifts for Christmas
Across all Americans, 31% are opting out of gift-giving altogether this year, with Gen Zers (39%), those earning less than $30,000 (37%) and those without children (36%) the most likely to do so. As for why, 52% cite cost as a reason, while 29% have a mutual agreement among gift-givers and 22% don’t celebrate holidays.
Meanwhile, 55% of gift-givers plan to forgo or cut back on traditions (like gifts, Secret Santa, and Elf on the Shelf) due to inflation.
Gift-giving causes stress for some Americans
The holidays can get stressful for many but 26% say gift-giving causes them stress, with Gen Zers (36%) and those with children younger than 18 (32%) leading the responses. Looking at previous holiday seasons, 47% have gone into debt due to holiday spending. That figure is even higher among those with children younger than 18 (62%), millennials ages 28 to 43 (55%) and Gen Zers (55%).
Conversely, 33% believe gift-giving has become more important to them over time, while 38% say its significance hasn’t changed.
And in a separate study from Empower, 42% of people polled admitted to regifting to save money during the holidays.