SEATTLE — Record online sales marked the start of the holiday shopping season, despite a dip in consumer confidence reported in November.
Americans spent more than $44 billion online during Cyber Week, according to retail tracker Adobe Analytics.
This surge in spending comes even as the Conference Board noted a decline in consumer confidence in November, attributed to factors such as inflation, tariffs, and the government shutdown.
“While it may be muted in some parts of the country, I think overall consumer spending is going to be very strong,” said Steve Cotton, President of Cotton Wealth Management Associates.
More consumers, though, are using buy-now-pay-later options, according to Adobe Analytics. Cotton expects more shoppers will be using credit cards too.
“While it helps facilitate spending and it gives people a little more buying power than they otherwise would have, you’ve got to be careful of these traps,” Cotton said.
Cotton warns it’s critical to pay your credit card off in full each month, so you don’t end up wasting money on penalty fees.
Instead of relying on short-term debt options, set a budget for each person you’re shopping for and stick to it. Consider talking to loved ones about spending expectations. Use cash back extensions to get more money in your pocket and avoid last-minute online shopping that might require express shipping fees.
Cotton’s other big tip: focus on saving first.
“I always advise people, remember to pay yourself first,” Cotton added, emphasizing the importance of putting money into retirement accounts over using extra cash on extra gifts.
Bank of America surveyed price-conscious shoppers to uncover their saving strategies, with many planning to stick to budgets, shop at discount stores, redeem rewards and points, or simply buy fewer gifts for fewer people.
©2025 Cox Media Group
