Budget blasters
Did you know that the average
American spends $700 to $1,600 throughout the winter holiday
season? According to the National Retail Federation, the
winter holidays see more than 16 times the spending than the
next biggest holiday, Valentine's Day.
And here's the catch: Those
Americans who are spending an average of $1,600 on holiday
purchases are over their estimated budget by $700. Chances
are, if you don't have a budget and a plan for holiday
spending, you'll spend too much as well.
You know you've spent too
much if you still owe money after the holiday has ended. How
does this happen?
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Buying on credit (including buy-now-pay-later
plans). It's all too easy to think of it as not
really spending money. But the typical interest rate
can drag those holidays on—like the neighbors who
stick around long after the New Year's party ends. |
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Shopping without a list. Or shopping with a list of
concepts without prices or alternatives. |
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Incidental costs. Wrapping, cards, and postage add
up. If you're traveling, it's easy to forget to
include cost like pet care, tips, fuel, eating out,
parking, tolls, etc. |
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Last-minute shopping. You think you're hitting up
the sales, but you risk getting hit up instead. |
HOLIDAY SAVERS
When you make your
household budget for the coming year, make sure to include
holiday spending.
● Budget for travel,
whether as part of the holidays or in its own category.
● Think ahead about
incidental expenses.
● Budget a cushion for
unexpected gifts or events, such as traveling across the
country to a wedding.
● Once you have a holiday
budget, save regularly for it.
● Know your budget and
stick to it! Set a total dollar amount for a holiday and
apportion spending accordingly. For example, a Christmas
gift budget of $500 and 10 people to buy fir averages out to
$50 per gift. Revise the gift list or cost rather than the
budget total.
● Shop with a list of gifts
and costs, then record the actual cost for the next year's
budget. Subtract each purchase from your check register,
even if you don't pay by check, to help you visualize the
dwindling account.
● Shop with cash, checks,
or debit cards instead of credit cards; however, if you do
choose to use a credit card, use a low-interest card for
gifts you must pay off over time.
● Use one year's costs for
the next year. Live and learn!
● Anticipate holiday
parties. Will you need to buy hostess gifts or gifts to
exchange, etc.?
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