Latinos Rethink Holiday Travel and Traditions Due to Rising Costs
The BMO Real Financial Progress Index recently revealed that Latinos in the United States plan to spend significantly more this holiday season, with projections averaging nearly $2,700 per household, which marks an increase of about $650 compared to last year. This surge in expected spending is primarily attributed to rising costs, with many Latinos finding it necessary to adjust or entirely eliminate travel plans due to financial concerns related to the cost of living.
As holiday traditions play a central role in Latino culture, the implications of these financial strains are considerable. Lizzy Díaz-Ortiz, Vice President of Hispanic/Latino Banking at BMO, highlights that while family celebrations are essential, many individuals are forced to rethink their holiday plans due to budget constraints. This year, Latinos are taking a more measured approach to their expenditures, actively seeking ways to balance the desire for celebrations with their financial goals.
Despite strong sentiments stating that spending on gifts, travel, and holiday gatherings is more important than saving, many Latinos are finding themselves cutting back. On average, they're estimating a budget of $210 for hosting guests, a notable decrease from $390 last year. The survey found that 59% plan to host family and friends at home, down from 68% in 2024. Additionally, the trend is evident in decorations, where 57% plan to spend on festivities, down from 64% in the previous year.
Travel, which traditionally forms a crucial part of holiday plans, has been significantly affected. According to the index, only 41% of Latinos will budget for travel this season, a decrease from 59% in 2024. Those who are planning trips are predicting an average spend of nearly $1,200, which constitutes over 40% of their total holiday budget.
Modifying or even canceling plans due to financial pressures is becoming increasingly common among the Latino community. The data shows that 44% of Latinos have altered their domestic travel plans, with 16% canceling or postponing entirely. When looking at international travel, the figures are slightly better with 36% modifying their plans and 16% canceling. The primary reasons cited for these changes are the increased costs of daily expenses, which are outstripping available budgets for discretionary spending.
In addition, BMO's findings suggest that many Latinos are concerned about their overall financial stability as the holidays approach. Around 50% express heightened anxiety over their financial situation compared to previous months, a sentiment that surpasses that of the general population. Furthermore, job security remains a concern, with 26% of Latinos reporting increased worries about potential layoffs.
While there is a significant emphasis on financial anxiety, Latinos are adapting their shopping behaviors. For example, 71% have adjusted their purchasing habits in response to recent tariff implications on the economy. A considerable segment is opting for early shopping, with 46% starting their Christmas shopping sooner to mitigate financial strain.
To navigate this holiday season successfully, BMO offers actionable advice tailored towards helping Latino families achieve financial well-being. They encourage creating thorough budgets not only for the holiday season but also for the upcoming year. Utilizing resources like BMO SmartProgress, which provides tools in both English and Spanish, can support families in making informed decisions.
Moreover, maximizing rewards from credit card offerings, such as the BMO Escape card, can help families convert spending into travel points, making holiday travel more feasible. The BMO Real Financial Progress Index, established to gauge consumer perceptions regarding personal finance, aims to initiate dialogues that can assist families in reaching financial milestones.
Overall, while the rising costs pose challenges, the resilience and adaptability of the Latino community are evident as they strive to maintain their cherished holiday traditions while being financially responsible. The survey underlines these efforts and provides an essential snapshot of the evolving landscape of holiday spending amidst economic pressures.
As holiday traditions play a central role in Latino culture, the implications of these financial strains are considerable. Lizzy Díaz-Ortiz, Vice President of Hispanic/Latino Banking at BMO, highlights that while family celebrations are essential, many individuals are forced to rethink their holiday plans due to budget constraints. This year, Latinos are taking a more measured approach to their expenditures, actively seeking ways to balance the desire for celebrations with their financial goals.
Despite strong sentiments stating that spending on gifts, travel, and holiday gatherings is more important than saving, many Latinos are finding themselves cutting back. On average, they're estimating a budget of $210 for hosting guests, a notable decrease from $390 last year. The survey found that 59% plan to host family and friends at home, down from 68% in 2024. Additionally, the trend is evident in decorations, where 57% plan to spend on festivities, down from 64% in the previous year.
Travel, which traditionally forms a crucial part of holiday plans, has been significantly affected. According to the index, only 41% of Latinos will budget for travel this season, a decrease from 59% in 2024. Those who are planning trips are predicting an average spend of nearly $1,200, which constitutes over 40% of their total holiday budget.
Modifying or even canceling plans due to financial pressures is becoming increasingly common among the Latino community. The data shows that 44% of Latinos have altered their domestic travel plans, with 16% canceling or postponing entirely. When looking at international travel, the figures are slightly better with 36% modifying their plans and 16% canceling. The primary reasons cited for these changes are the increased costs of daily expenses, which are outstripping available budgets for discretionary spending.
In addition, BMO's findings suggest that many Latinos are concerned about their overall financial stability as the holidays approach. Around 50% express heightened anxiety over their financial situation compared to previous months, a sentiment that surpasses that of the general population. Furthermore, job security remains a concern, with 26% of Latinos reporting increased worries about potential layoffs.
While there is a significant emphasis on financial anxiety, Latinos are adapting their shopping behaviors. For example, 71% have adjusted their purchasing habits in response to recent tariff implications on the economy. A considerable segment is opting for early shopping, with 46% starting their Christmas shopping sooner to mitigate financial strain.
To navigate this holiday season successfully, BMO offers actionable advice tailored towards helping Latino families achieve financial well-being. They encourage creating thorough budgets not only for the holiday season but also for the upcoming year. Utilizing resources like BMO SmartProgress, which provides tools in both English and Spanish, can support families in making informed decisions.
Moreover, maximizing rewards from credit card offerings, such as the BMO Escape card, can help families convert spending into travel points, making holiday travel more feasible. The BMO Real Financial Progress Index, established to gauge consumer perceptions regarding personal finance, aims to initiate dialogues that can assist families in reaching financial milestones.
Overall, while the rising costs pose challenges, the resilience and adaptability of the Latino community are evident as they strive to maintain their cherished holiday traditions while being financially responsible. The survey underlines these efforts and provides an essential snapshot of the evolving landscape of holiday spending amidst economic pressures.
Topics Consumer Products & Retail）
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