Tuesday, December 16, 2014NEW YORK -- Despite lower energy prices, 82% of Americans say they do not plan to spend more this holiday season than last. Only 16% plan to spend more this year -- 5% because of lower gasoline prices and 11% plan to spend more, but not specifically because of gas prices, finds a survey by Banknote.com.
Not spending more was consistent across all demoraphics, whether age, income and education levels, but millennials have the lowest propensity to hold back, Bankrate.com reports. Fully 72% of millennials said they would not spend more compared to 84% to 86% of those older.
Millennials are the most likely (28%) to say they would spend more this holiday season, with 8% attributing higher spending to the drop in gas prices and 20% being inclined to spend more regardless.
"Despite consumers' improved feelings of financial security, there is still a prevailing sense of unease when it comes to discretionary spending and the lack of emergency savings," said Greg McBride, Bankrate.com chief financial analyst. "But with some millennials, even loads of student debt and little savings won't hold them back."
The Financial Security Index came in at 102.0, the highest level since March and the third-highest reading of 2014. Any reading above 100 indicates improved financial security compared to one year ago, while any reading below 100 indicates deterioration in a sense of financial security over the preceding year.
Readings on net worth and overall finances posted notable improvement, while feelings of job security and comfort level with debt continue to show strength. Savings remains the laggard among financial security metrics, with the level of discomfort unchanged from one month ago and little changed throughout the year.
Both men and women's feelings of financial security posted improved readings over a month ago. Overall, men's feelings of financial security (104.1) indicate improvement over a year ago while women's feelings (99.9) indicate deterioration by the slightest of margins, the report found.
Published by The Business Journal, Youngstown, Ohio.
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