As the holidays approach, it’s essential to start preparing financially. Many Americans are making sacrifices and trade-offs in their spending and saving habits to afford gifts and travel during the holiday season. The impact of inflation on finances has led to concerns and adjustments in preparation for the holidays. A recent survey found that most shoppers are taking different approaches to avoid debt during this time of year.
The survey revealed that most shoppers plan to spend the same amount on holiday shopping as they did the previous year, while others are planning to spend less. To afford gifts and events, many are choosing to buy fewer gifts or shop for fewer people, opting for more intimate gatherings that require fewer gifts. Making financial sacrifices to avoid holiday debt is a trend that many are following, with 1 in 4 people spending less on nonessential items in order to afford the holidays.
Many shoppers are starting their holiday shopping early to take advantage of savings and discounts. With 72% of shoppers planning to use various methods to save money this holiday season, taking advantage of preholiday sales is a popular strategy. Retailers are launching sales earlier to accommodate shoppers looking to finish their holiday shopping before Thanksgiving. Early sales events and discounts offer opportunities to save on holiday staples and other items.
Although holiday costs can add up, the majority of Americans are choosing to pay for their purchases using cash or debit cards to avoid overspending and debt. Experts recommend using a debit card as a self-restraint tool to stay on budget. While some shoppers may use credit cards or buy now, pay later plans, it’s crucial to only use these methods if you can pay off the balance in full right away to avoid costly interest charges.
It’s essential to set gift-buying expectations and consider alternative approaches to holiday shopping to avoid overspending and accumulating debt. Setting clear budgets when shopping for gifts can prevent temptation to overspend. Before turning to financing options, such as credit cards or buy-now-pay-later plans, it’s vital to prioritize staying out of debt and not jeopardizing one’s financial health. Planning ahead and making thoughtful choices about gift-giving can help ensure a financially stable holiday season.
