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Holiday shopping is an enjoyable tradition for many, but the aftermath, especially upon receiving credit card statements, can be overwhelmingly stressful. As the holiday season approached, consumers were already mentally preparing for the financial impact.
A survey conducted in September by The Harris Poll for NerdWallet revealed that 55% of shoppers anticipated financial stress related to holiday spending in 2024. Despite this concern, 32% of respondents still believed it was crucial to spend on gifts and experiences to express their affection for loved ones.
According to Carrie Rattle, a financial therapist based in New York, the intense media promotion surrounding the holidays creates a frenzy that encourages consumers to deviate from their spending plans. Rattle noted that this “manic euphoria” often leads individuals to indulge in instant gratification, pushing any acknowledgment of potential financial consequences to the back of their minds.
As the holidays draw nearer, many might be facing the consequences of their spending habits. Around 10% of holiday shoppers reported considering the use of emergency savings for gifts, while 9% admitted that they would prioritize gift expenses over necessary debt payments and bills, as highlighted by the survey that involved 2,000 adults over the age of 18.
Strategies for Responsible Holiday Spending
Experts assert that to mitigate the risk of overspending, it is essential to plan ahead and establish a budget. Rattle encourages consumers to start their holiday planning well ahead of time, emphasizing the importance of approaching significant purchases with a clear mind.
“It’s essential to determine your spending limits before the emotional shopping rush begins,” Rattle advised. Taking time to research gifts and their associated costs can lead to more thoughtful purchasing decisions.
Saving throughout the year is also a prudent strategy. Kristen Euretig, a certified financial planner and founder of Brooklyn Plans, suggests allocating a specific amount each month into a dedicated savings account for holiday expenses. This approach can help shoppers be better prepared financially when the holiday season arrives, allowing them to seize opportunities from various sales throughout the year.
Additionally, Rattle recommends creating a detailed gift list early in the planning process and spacing out purchases over time. “Consider buying gifts weekly,” she suggested. “Establish bookends around your shopping time by planning an obligation before shopping and another after you’ve completed your purchases.”
Controlling when and how you shop can also help limit unnecessary browsing, which often leads to impulse buys. Rattle advises reflecting on gifts that recipients genuinely value, stating that understanding the significance of your purchases can help distinguish which gifts are worth the expense.
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