November 24, 2017 – also known as Black Friday – is just around the corner. With retailers preparing their sales for the most popular shopping period in the United States, Americans are simultaneously beginning to plan for those purchases they’ve been eyeing. But just how much are we expecting to spend and who are the biggest spenders?
A shopping frenzy in our midst
New research by finder.com has found that Americans plan to spend an estimated $550 each over Black Friday and Cyber Monday sales this year, totaling to a whopping $59.57 billion. Interestingly, men intend to spend more this year, averaging $651 each compared to $463 for women – a $188 difference!
Whether we’re shopping online or in-store, sale time is set to impact those of all generations. Gen Xers lead the way for planned spending, averaging $604 each. Coming in second are Millennials at $557 each, followed by Baby Boomers at $438 on average. With access to sales made even easier in the digital age with an online checkout and twenty-four hour shopping time, it’s no surprise we’re all planning to spend up big. In fact, last year the NRF reported that online was the most popular shopping method for Black Friday frenzy consumers.
Of qualifying states, those residing in Florida plan to spend the most this year at $745 each, followed by those in Pennsylvania at $593 and Texas at $571.
Over 108 million American adults are planning to part with their cash
It’s no surprise that Black Friday and Cyber Monday sales will be shaking up the States. An estimate of nearly half of all American adults (44.1%) plan to spend money this year, totaling to over 108 million of us. A greater proportion of women intend to spend when compared to their male counterparts.
Not surprisingly, the younger you are the more likely you intend to splurge on the Black Friday and Cyber Monday sales. 61.9% of Millennials plan to spend money this year, followed by 49.5% of Gen Xers and 27.0% of Baby Boomers. It’s clear we’re all thinking of the sweet, sweet savings.
Predictably, of qualifying states, Georgia, Wisconsin, Illinois, Virginia and New York are the top five planning on spending this year.
How long do we hold off in anticipation?
With so many discounts and deals set to take place, it makes sense that some of us hold off in anticipation of the sales. Over 117 million American adults (47.8%) say they hold off buying items in the lead up to the Black Friday and Cyber Monday sales, which is set to cause a rush on the actual day. And it makes sense, too. Why risk paying more?
Of those holding off, 14.7% of us wait 1–2 months, the most common wait time. A further 13.8% wait just a few weeks, 9.8% wait 3–6 months and 3.7% wait 7–11 months. An additional 5.9% of Americans can be found waiting all year ‘round, not having purchased eyed goods since last year’s Black Friday sales. Talk about resilience!
Women are more likely to hold off or wait for sales at 50.4%, compared to 45.1% of men. Surprisingly, from a generational level, Baby Boomers are actually the least likely to be waiting for sale time to come around. They’re actually the most likely to purchase goods as they see them as opposed to holding off (69.0%), followed by Gen Xer’s (46.3%) and Millennials (35.6%).
Of qualifying states, those residing in Wisconsin, Georgia or Illinois plan to wait for the sales most over any other generation. In contrast, those in North Carolina, Massachusetts, Tennessee, and Washington will be purchasing goods whenever they see them, regardless of upcoming sales and discounts.
Familiarize yourself with a great deal and the real deal
It’s easy to feel overwhelmed during sale time, with an influx of discount emails hitting your inbox, sale catalogs in the post and bright, promotional posters hanging up in store. However, with an estimated $59.57 billion being spent when sale time hits this year, it’s important to know what really makes a great deal, as well as understanding what your budget can accommodate.
Before clicking the ‘buy now’ button, setting yourself a budget can really help you to maximize your spend, and reduce the likelihood of overspending. If you know you’ve been eyeing a few products, start planning early by reducing your outgoings in the lead up to the sales, or by setting some of your earnings aside with an automatic savings account.
It’s also beneficial to do your research before hitting the mall – or the web – to familiarize yourself with what really makes a great deal. Although an item is marked as reduced, it may actually appear at this price all year ‘round. Don’t restrict yourself to one store, either. During such a busy time, it’s worth assessing the price difference between competing retailers to make sure you get the most bang for your buck. Who says you can’t be money conscious and make those purchases all at once?
This page is for informational purposes only. Chime does not provide financial, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for financial, legal or accounting advice. You should consult your own financial, legal and accounting advisors before engaging in any transaction.