7 in 10 Americans living paycheck to paycheck will spend same or less this holiday season: survey

Seven in 10 Americans who are living paycheck to paycheck said they expect to spend the same amount or less this holiday season than they did last year, according to a new Forbes Advisor survey.

Nearly half — 47 percent — said they plan to spend the same amount this year on holiday shopping, while about 18 percent said they plan to spend less, the survey found. 

Another 30 percent of Americans living paycheck to paycheck, or those whose income just covers their expenses without anything left over, expect to spend more this holiday season.

More than a third of Americans — 35 percent — expect to spend between $251 and $700 on holiday presents, while 38 percent plan to spend between $751 and $1,500, according to the Forbes survey.

Some 52 percent of those living paycheck to paycheck said they would cut back on savings or dip into savings in order to pay for holiday shopping. The same portion also said they would accumulate credit card debt to afford gifts.

Two in five Americans in the survey reported living paycheck to paycheck, with 49 percent citing high monthly bills, such as rent, mortgage, insurance or utilities, for their current financial situation.

About 44 percent of those surveyed pointed to low income as a factor, while 46 percent cited a lack of budgeting and financial planning, according to the survey.

The vast majority of Americans have less than $2,000 in emergency savings — the average amount needed to cover one month’s bills in the U.S. Only about 20 percent have more than $2,000 in savings.

An even smaller share of Americans living paycheck to paycheck have one month’s worth of emergency savings, at about 15 percent, the survey found. Some 5.5 percent have no savings at all.

The Forbes Advisory survey was conducted Oct. 24-26 by the market research company OnePoll with 3,000 Americans; it had a margin of error of 1.8 percentage points.