Connect with us

Money

Black Friday: The Holiday Surge in U.S. Consumer Debt and Spending

Published

on

Black Friday: The Holiday Surge in U.S. Consumer Debt and Spending

Black Friday

Visualizing the surge in U.S. consumer debt and spending

The Chart of the Week is a weekly Visual Capitalist feature on Fridays.

Next week, Black Friday and Cyber Monday will kick off the start to the U.S. holiday shopping season, during which consumers are expected to spend a total of $655.8 billion this year.

With the average bill coming in at $938.50 for holiday spending, where are people finding the extra cash?

We looked back at the last five years of Equifax data to see how consumer debt correlates to holiday purchases.

There’s Credit In Store

One way consumers take advantage of Black Friday deals is through the issuance of store credit. Specifically, Black Friday traditionally sees a noteworthy surge in signups to private label cards – the kind redeemed at stores like Macy’s.

Each year, roughly half a million Americans are signing up for new accounts on Black Friday:

Private label cards issued2012201320142015
Prior 10 days (Avg.)130,312153,605164,341162,006
Black Friday463,292485,512502,805491,873
Following 10 days (Avg.)167,144181,454182,320181,903

Furniture and department stores are among the biggest providers of this type of credit to consumers. Here are the five-year averages by industry for the months of November and December:

New store credit issued (Nov/Dec)$ millions
Furniture851
Department stores790
Jewelry451
Electronics365
Clothing241

Charge it, please

This bump in activity doesn’t stop with new signups for store credit. The average balances on store cards and credit cards both jump noticeably in the months following the holiday season:

MonthStore Card Balance (5-Year Average)Credit Card Balance (5-year Average)
August$291$1,717
September$293$1,720
October$296$1,709
November$298$1,707
December$313$1,742
January$320$1,756
February$308$1,710

Every year is different, but the data always follows the same trend.

Stocking up on Black Friday deals is not cheap, and extra dollars spent eventually make their way onto the credit card statement with the cost of interest added on.

Click for Comments

Money

Charted: Who Has Savings in This Economy?

Older, better-educated adults are winning the savings game, reveals a January survey by the National Opinion Research Center at the University of Chicago.

Published

on

A cropped chart visualizing the percentage of respondents to the statement “I have money leftover at the end of the month” categorized by sentiment, age, and education qualifications.

Who Has Savings in This Economy?

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

Two full years of inflation have taken their toll on American households. In 2023, the country’s collective credit card debt crossed $1 trillion for the first time. So who is managing to save money in the current economic environment?

We visualize the percentage of respondents to the statement “I have money leftover at the end of the month” categorized by age and education qualifications. Data is sourced from a National Endowment for Financial Education (NEFE) report, published last month.

The survey for NEFE was conducted from January 12-14, 2024, by the National Opinion Research Center at the University of Chicago. It involved 1,222 adults aged 18+ and aimed to be representative of the U.S. population.

Older Americans Save More Than Their Younger Counterparts

General trends from this dataset indicate that as respondents get older, a higher percentage of them are able to save.

AgeAlways/OftenSometimesRarely/Never
18–2929%33%38%
30–4436%27%37%
45–5939%23%38%
Above 6049%28%23%
All Adults39%33%27%

Note: Percentages are rounded and may not sum to 100.

Perhaps not surprisingly, those aged 60+ are the age group with the highest percentage saying they have leftover money at the end of the month. This age group spent the most time making peak earnings in their careers, are more likely to have investments, and are more likely to have paid off major expenses like a mortgage or raising a family.

The Impact of Higher Education on Earnings and Savings

Based on this survey, higher education dramatically improves one’s ability to save. Shown in the table below, those with a bachelor’s degree or higher are three times more likely to have leftover money than those without a high school diploma.

EducationAlways/OftenSometimesRarely/Never
No HS Diploma18%26%56%
HS Diploma28%33%39%
Associate Degree33%31%36%
Bachelor/Higher Degree59%21%20%
All Adults39%33%27%

Note: Percentages are rounded and may not sum to 100.

As the Bureau of Labor Statistics notes, earnings improve with every level of education completed.

For example, those with a high school diploma made 25% more than those without in 2022. And as the qualifications increase, the effects keep stacking.

Meanwhile, a Federal Reserve study also found that those with more education tended to make financial decisions that contributed to building wealth, of which the first step is to save.

Continue Reading
Visualizing Asia's Water Dilemma

Subscribe

Popular