How to avoid holiday overspending
Experts predict record holiday spending this year and urge consumers to start budgeting early to avoid financial strain.
“We have seen a trend over the last couple of years of consumers starting their shopping a little earlier for the winter holidays,” says Katherine Cullen, vice president for Industry and Consumer Insights at the National Retail Federation.
Cullen notes that holiday spending is expected to hit an all-time high, with shoppers spending an average of $902 per person.
About $641 of that amount will go towards gifts, with the rest allocated to food, cards, and décor.
“We do know that in many ways, inflation has gotten better than it was last year, particularly when it comes to goods, which is great news for consumers,” Cullen adds.
A recent survey by NerdWallet found that 28% of shoppers who used credit cards to buy gifts last year are still paying off that debt.
“The best thing to do is to really make a plan before you start spending. Ideally, we want to use our savings and not debt to fund those things,” says Kimberly Palmer, personal finance expert at NerdWallet.
Palmer also recommends making a list and figuring out exactly how much you want to spend.
She advises starting shopping early, talking to family and friends about expectations and possibly scaling back, and signing up for price drop alerts.
“Using some kind of browser add on like Honey or Camel browser extension, just to track those prices, can just help make sure that you’re getting the best deal possible,” Palmer advises.
