Your Holiday 2023 Budget Guide, Part 2
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Last year, Americans took on a record amount of holiday credit card debt, averaging $1,549 per household. And it gets worse: it took most people an average of 5 months to pay off their holiday-related credit card debt, leaving them with extra debt and stress well into the spring of 2023.
Keeping our credit cards paid off just keeps getting more challenging with inflated prices still around, especially for things like groceries and housing costs. You may be going into the holiday season with existing credit balances, only to keep adding to them with holiday shopping. Here’s Part 2 of your guide to preventing the holidays from becoming a debt gift that keeps on giving well into 2024!
1. Remember that retailers shift into high gear during the final quarter of the year: thanks to holiday marketing campaigns and fall sales like Prime Day, Black Friday and Cyber Monday, people just buy more stuff than usual, whether it’s gifts for others or for themselves. There’s nothing wrong with getting a great bargain, but don’t let all those holiday sales blow your budget, either. According to the National Retail Foundation, American households spent a combined $963 billion during the 2022 holiday shopping season. Holiday shopping is a lot of fun because the stores are playing festive music, the stores are all decorated and cheerful, and their carefully-planned holiday marketing is encouraging you to do the one thing you shouldn’t do: splurge! Buy a little something for yourself while you’re at it! Your future self with thank you come January, however, if you can keep your holiday shopping sprees in check. At least most of the time.
2. If you have a smaller budget to work with this year than normal, prioritize the things that will bring you and your loved ones the most joy. While we’re on the topic of marketing and advertising, it’s easy to get sold on things that we don’t even really need or want. Now is a great time to have a family conversation about what everyone actually wants for Christmas! Have everyone in the family make up their wish lists, and be sure to include fun experiences in these lists, not just presents.
3. Focus on quality over quantity. In the consumer culture we live in today, it’s easy to get caught up in constantly buying into the next fad or trend. Especially when money is tight, it can help to prioritize buying a few high-quality gifts instead of a heap of cheap items that will promptly break, wear out, or get replaced by the next fad.
4. Avoid last-minute Christmas shopping. This can lead to rushed (and often expensive) purchasing decisions. Plan ahead for the gifts you do plan to buy, and give yourself time to compare prices and make thoughtful choices. There are many online price-tracking tools and coupon discount code finders that can help alert you to sales on the items you’re looking for, so you don’t have to pay full price!