What's happening:
As consumers reflect on their holiday season, many are taking stock of their spending and its impact on their financial health. Many are now focusing on how to reconcile festive expenses with their budgets for the year ahead. With the upcoming tax season on the horizon, this can be an opportunity to leverage refunds to offset holiday debt or bolster savings to achieve their financial goals in 2025.
What we found:
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Gen Z spent notably more this past holiday season, with 54% citing that their holiday expenses exceeded that of 2023.
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There is a 50/50 split between people who are still carrying a balance on their credit cards from holiday expenses and those who have since paid it off.
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Savings are top of mind for people to account for the holidays, with 59% planning to make at least some minor adjustments in the year ahead. The most common action items are creating a stricter budget (51%) and reducing discretionary spending (46%).
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44% expect to get a refund this upcoming tax season, with most people expecting to put that money towards paying down debt (45%) and contributing to general savings (43%).
Why it matters:
With holiday spending leaving many consumers balancing budgets and preparing for tax season, brands have an opportunity to meet people where they are. Messaging that acknowledges tighter wallets and emphasizes value—whether through promotions, savings tips, or practical product solutions—can help brands stay relevant. As refunds roll in, positioning products or services as tools to help consumers stretch their dollars further or work toward their 2025 goals can make a lasting impact.
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