• November 29, 2024
  • Posted by General Electric Credit Union
  • 5 read

How Much Do Americans Spend on Holiday Shopping? Discover the Answer and How to Budget

How much do Americans spend on holiday shopping? This year, they are expected to spend 8% more—around $1.8k in total.1 With 28% of polled credit card users reporting that they are still paying off holiday debt from last year,1 planning is crucial to ensure the season of giving doesn’t leave you with more financial stress than holiday cheer. By taking simple steps to manage your budget, you can keep spending in check and avoid credit card debt.  

Shop smarter during the holidays with these tips 

1. Limit spending per person 

Between family members and friends, you may have a long shopping list. Plan ahead before hitting the stores or online shopping by creating a list of everyone you want to buy for. Set a limit of how much you want to spend in total, then divide it among the list so you know exactly how much to spend on each person.Most importantly, stick to the budget! If you save a few dollars on one person’s gifts, try not to spend that on someone else – just enjoy the saved money! 

Consider budgeting for any last-minute gifts you may have missed while planning. Perhaps it’s a neighbor you didn’t expect to receive a present from or a last-minute gift exchange at work. Setting aside some extra money will help you cover these surprises without throwing your budget off course. 

2. Don’t forget about the extras 

So often, we think of holiday shopping as only including gifts, but it’s more than that. There’s cards, wrapping paper, holiday travel expenses, donations, decorations, food, and more. Take stock of what you already have and what you may need to buy. Use this brainstorming to create a shopping list. Then, price shop for these items – as well as gifts – to save on purchases you were going to make anyway.  

3. Earn on your purchases 

What’s better than buying gifts for others (and let’s be honest, buying yourself some things, too)? Earning cash back or points while shopping for the holidays. There are a variety of credit cards (and even debit cards) you can earn rewards with while shopping and dining. 

But beware of store credit cards! While stores may offer enticing sign-up bonuses, you don’t want to rack up a balance on a high-rate card. Doing so will cause your debt to snowball, leaving you with a financial headache and a lower credit score. Instead, go for a low-rate card and pay your balance in full each payment cycle to stay in the green. 

Did you know there are five fewer shopping days this year between Black Friday and Christmas? Don’t delay building your budget! Create one in minutes with Money Management, available to General Electric Credit Union Online Banking and mobile app users.2   

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