If what they say about women holding the purse strings and making most of the purchasing decisions is true, the findings of a new survey by Citi don't bode well for the economic recovery. And retailers, who are hopeful that Santa brings a lot of new toys this year, might want to stop reading.
The survey found that mothers with minor kids at home have been dramatically changing how they spend and save. And they're increasingly uncomfortable with the amount of debt they're carrying:
A cash only Christmas?
- Half of mothers are uncomfortable with their debt compared to 38 percent of men and 40 percent of women overall. That's a 10 point increase from how mothers felt six months ago.
Mothers have cut spending on:
- Entertainment (84 percent of mothers v. 71 percent Americans)
- Credit card purchases (73 percent mothers v. 66 percent Americans)
- Cable TV (43 percent mothers v. 34 percent Americans)
- Major purchases (65 percent mothers v. 56 percent Americans)
Six months from now:
- moms are still planning to spend less eating out and going on vacation than other Americans. They're also more likely to say that these spending shifts are permanent.
On the bright side:
- Nearly three out of four mommies are positive about their financial future. (Of course we are! Moms have to be optimistic. How else could we make it through years of changing dirty diapers and scraping food off the floor? We can dream of cleanliness and order returning to the household someday, right? Plus what mom doesn't hope that our kids will have a bright future? In downright depressing times, we have to dig deep into our reserves and keep hoping for the best.)
- But most aren't expecting economic recovery around the corner. When asked how long it will be until their household finances stabilize, 32 percent said two or three years followed by 23 percent who answered next year. Just 10 percent say their finances have already stabilized. And once they do, moms, like the rest of Americans, look forward to saving more and paying down debt. The vacations and big ticket purchases will still have to wait.
