TAMPA, Fla. — Americans are projected to spend about $800 on gifts for the holidays this year.
“Which is interesting because 35% say, ‘Listen, we can’t spend what we’re used to spending, or we’re not going to be able to afford Christmas or the holidays.’ So there’s this dichotomy between we can’t afford it, but we’re going to do it anyway,” said Jade Warshaw, a financial coach with Ramsey Solutions.
That means many people are expected to go into debt again for Christmas.
Financial experts stress that it doesn’t have to be that way.
Before you overextend yourself, they want you to take a moment to reflect on the last holiday season.
“When you kind of look back, it lets you think how you want to spend this holiday season. And so setting those intentions is really important so that we end up having a holiday that we really enjoy,” said Warshaw.
Next, make a spending plan. It’s important this budget is detailed and itemized.
“For instance, go ahead and say who you’re going to spend money on, put it in a list of priority, and also be very specific about what you planned on spending on each individual,” said Warshaw.
There are more than just presents that you should plan ahead for during the holidays.
“Think about, ‘What do I want to do this holiday season? How much is it going to cost?’ And the sooner you start planning, then you can find ways to maybe reduce cost,” said Lisa Leslie, financial management extension agent for UF IFAS Hillsborough County.
“There’s all of these things that start to add up. It’s not just the gifts, it’s not just the travel, it’s the meals. It’s the work functions, right? It’s the holiday parties. You need a new dress for that party. So if you’re not careful, you can overextend yourself extremely fast,” said Warshaw.
Another thing to be mindful of if you’re trying to stay on budget is what’s on your phone.
“If you have apps on your phone or things that log you in easily to spend, maybe get rid of those for a little while and see if that does better for you,” said Leslie.
Also, consider unsubscribing from promotional emails so you’re less tempted to spend money.
For the gifts you are buying, shopping experts encourage you to take some extra time to be savvy by stretching your holiday dollar with promo codes and finding cash-back offers on purchases.
“These are going to be opportunities that you can take to then get paid to shop and feel a lot better about some of that money that you are spending,” said Stephanie Carls, retail and insights expert for RetailMeNot.