Your holiday bill might be higher than you’d like to admit.
GoBankingRates surveyed 2,000 adults about their spending for Thanksgiving and Christmas, and the results were telling.
- 61% of participants said they’ll spend less than a paycheck — or nothing at all — on these holidays.*
- 22% said they’ll spend a full paycheck on holiday expenses like gifts, decorations, travel and food.
- Almost 9% said they’ll spend two entire paychecks — the equivalent of a month’s pay — on holiday costs.
- Just over 3% confessed to spending three full paychecks on holiday festivities. Older adults, millennials and men are the most likely to spend three months’ pay on the holidays, according to GoBankingRates.
*Note: While GoBankingRates’ report states that 57% of those surveyed will spend one full paycheck on the holidays,that figure only counts respondents who planned to spend one paycheck or more on holiday-related costs.It excludes people who said they’d spend less than a paycheck or nothing at all. Using all responses,we found 61% of respondents will not spend an entire paycheck on the holidays.
Paychecks vary a lot from person to person, but we can probably agree that when you glance at your paycheck, it seems like a decent amount — at least until bills eat it up.
And holidays bring extra obligations, whether you’re hosting an extended family dinner or your parents expect you to fly across the country.
So what can you do to protect your budget — and your sanity?
Ways to Curb Your Holiday Spending
First, let’s be honest about holiday spending: Whatever amount you’re comfortable spending is fine with us, as long as you make a plan. If you set money aside during the year so you can spend without worry in December, you deserve credit.
Plane tickets and presents? They’re not good reasons to raid your emergency savings, nor to rack up debt.
If your finances are already feeling strained by the approaching season, pause and make a list. Knowing exactly what you need to buy lets you research prices and hunt for discounts.
For instance, if you’re preparing a turkey for 20 people, you might be able to use loyalty perks at your grocery store to get the bird for free.
Knowing which Black Friday deals aren’t worth it can help you plan your gift purchases — and maybe skip the early-morning crowds.
If you must travel for the holidays, you’ve likely missed the cheapest airfare for this year. (There’s always next season.) Still, you might save significantly by flying on Thanksgiving or Christmas Day. Cheap train or bus tickets could also be available.
None of that’s possible unless you first identify what you need to buy or reserve this season.
Take stock now, or you’ll be watching those paychecks disappear in a few weeks.
Jordan Hale is a features writer at Savinly.
