Big Spending Out, Steady and Savvy Saving Are in This Holiday Season, According to Upromise by Sallie Mae Survey

Published on Monday, 21 November 2011 10:20 Written by TradersHuddle Staff

NEWARK, Del.-( Business Wire )-

American parents report they anticipate holiday budgets similar to last year and most will stretch their spending by shopping early and looking for deals, according to a survey of parents conducted by Upromise by Sallie Mae. When asked to identify their shopping persona, 33 percent of parents indicated they are Slow and Steady with Savvy Savers a close second at 30 percent. Black Friday Bargain Shoppers represent 22 percent, Under the Wires 11 percent, and Big Spenders are a rarity this year at 4 percent.

Many parents prefer practical presents for their children such as clothing (54 percent) and gift certificates (43 percent) or meaningful gifts of money for college (34 percent). In fact, 60 percent said they sometimes worry their kids get too much stuff and would prefer they received gifts that are more meaningful.

“We’re helping to make the season more meaningful for parents of five year olds and freshmen alike by making it easier to save more for college while gift-giving,” said David Coppins, president of Upromise, a service of Sallie Mae, the nation’s No. 1 financial services company specializing in education. “Holiday giving can be a stressful time—as can saving for college—and Upromise.com offers simple solutions to both.”

Last year, Upromise members saved $12 million for college during the holidays by making purchases through Upromise.com. This year, Upromise has made it even easier with extra cash back and discounts at hundreds of major retailers. For the 41 percent of parents who plan to shop with a credit card with rewards, the Upromise World MasterCard, through Dec. 31, 2011, offers card holders the ability to earn 11 percent cash back for college on eligible online purchases through Upromise.com. Information about rates, fees, other costs and benefits associated with the Upromise credit card is available at upromise.com/cardcenter.

Nearly half of parents surveyed plan to spend the same amount as last year (49 percent), followed by 34 percent who plan to reduce spending. Of those cutting back, nearly two-thirds (65 percent) are doing so to reduce debt and cover bills, while 34 percent are building up a rainy day fund, closely followed by saving for college (33 percent) and retirement (25 percent).

Eight out of 10 younger parents, under age 34, plan to save with online deals, coupons and free shipping compared to only six out of 10 parents age 45 or older. Crafty gift givers plan to spread holiday cheer by making their own gifts (21 percent) and nearly 10 percent will re-gift past presents.

The study surveyed 500 Americans with children ages 18 or under in October 2011.

Sallie Mae (NYSE: SLM) is the nation’s No. 1 financial services company specializing in education. Serving 25 million customers, Sallie Mae offers innovative savings tools, tuition payment plans and education loans that promote responsible financial habits and reward success. Through its subsidiaries, the company manages or services $238 billion in education loans and administers $35 billion in 529 college savings plans. Members of its Upromise college savings rewards program have earned $625 million to help pay for college. Sallie Mae is also one of the leading financial service providers for universities and governments at all levels, including supporting $8 billion in ecommerce transactions annually at nearly 1,000 campuses. More information is available at www.SallieMae.com. SLM Corporation and its subsidiaries, commonly known as Sallie Mae, are not sponsored by or agencies of the United States of America.

Sallie MaeDebby Hohler, This e-mail address is being protected from spambots. You need JavaScript enabled to view it.