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According to CNBC, the average American will spend nearly $1,500 on the holidays. If you don't have that saved, or if you don't get a bonus to cover that expense, you might find yourself spending on credit this December.
On this Money Talks, we have some tips on what to do and what not to do as holiday retail sales are predicted to soar as high as $960 billion, according to the National Retail Federation.
Back in 2021, overall holiday spending reached a record $889 billion. This year is expected to be another record breaker, but according to Certified Financial Advisor Neil Vannoy, you don't want to overspend.
"It's no secret that the holidays can strain our budgets, so it's never too early to start budgeting for the holiday season," Vannoy told 6 News. "Planning now for expenses associated with travel and gift giving at the end of the year, you can avoid getting yourself into financial trouble."
Klarna, a payment provider and shopping service, surveyed over 40,000 U.S. consumers and found that 79 percent of shoppers left their holiday shopping to the last minute and planned to finish buying gifts within two weeks of Christmas.
"If you're like me and wait until the last minute to buy gifts, then you usually end up paying full price or paying for expedited shipping online," said Vannoy "Starting early will give you time to look for deals, especially during Black Friday."
And stick to that budget, because it's very easy to just swipe the plastic for any overages.
"People tend to spend up to 30% more when paying with credit cards as opposed to cash," Vannoy said. "To make sure you don't blow your budget, plan ahead how much you're going to spend for each person and carry cash when you shop."
And Vannoy says you might even find a deal after you make your purchase.
"While doing your holiday shopping you might find that an item you bought has gone on sale shortly after your purchase. Be sure to keep your receipts since most stores will refund you the difference if the purchase was made within a couple of weeks," Vannoy said.
Vannoy even had an idea and a solution for those who are impossible to shop for!
"If you plan on giving someone a gift card, consider buying it from sites www.cardcash.com, raise.com, or giftcardgranny.com that sell unused gift cards at a discount," said Vannoy. "And you can also save money by using discounted gift cards to buy the gifts that you'll be giving."
Vannoy went on to tell 6 News that you should also consider donating your time if you don't have room in your budget for gift-giving. Anyone with young children might appreciate you offering to babysit, and if you're handy, you can offer to help people with their home projects. If you're good with computers you can offer to help people fix their old computers or set up their new gadgets.
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