Christmas Budgeting Tips

Don’t let the social pressures of the holiday leave you bankrupted for 2021

Gifts, decorations, cards, holiday food, wrapping and snacks — even in the most difficult of times, some traditions never change — but in many cases, income does.

Regardless of what year we’re in or what circumstances we’re facing, Christmas is a financially stressful holiday, and it will be more so this year than ever, and you can’t blame people.

After experiencing what has been the most confusing, unpredictable and economically uncertain year in modern history, people worldwide are facing a holiday season away from their families with less money this year than last.

And while it may seem obvious for people in financially unstable positions to feel naturally inclined to spend less this year, it’s not necessarily the case. More than 40% of Americans spend more on what they make, with the average American overspending by $7,400 a year in 2019.

According to the Federal Reserve, consumers carry nearly $1.1 trillion in credit card debt, up from $888 billion five years ago.

People always want to make the holiday magical and memorable, and usually do so through spending hundreds, if not thousands, on amazing, expensive gifts, luxurious food, holiday outfits and Instagram-able decorations.