HOLYOKE, Mass. (WWLP)– This holiday season nearly 80 percent of Americans have seen lower gas prices in their area making it less expensive for them to get around.
A new CNBC survey shows that that extra cash in consumer’s pockets may not end up being spent. Less than 10 percent of those surveyed say they plan on using the extra money on holiday shopping. Instead they said they will save it or use it to pay down debt.
But some financial experts argue otherwise suggesting that extra money in consumers pockets will be taken to the mall and used on holiday gifts especially in the next two weeks.
Mark Teed, of Raymond James & Assoc. in Springfield, told 22News, “Instead of spending 75 dollars to fill your tank you’re now spending 55 let’s say and that extra 20 dollars is a psychological advantage and although right now people aren’t spending it on Christmas gifts but in the next three weeks I think they will.”
Some of the consumers surveyed said they will save the extra money and others plan to pay down debt. Teed says that all depends on the consumer’s age. “I think younger people will use this as a great opportunity to pay down student loan debt, people with kids will buy their kid an extra Christmas gift and I think seniors will be the least affected,” Teed said.
Economists expect the average consumer to spend roughly $760 on their holiday shopping this season, a 12 percent jump from last year.