Shop, Can You Not?
The holiday season is upon us which means people are getting their debit and credit cards ready to start spending big. To show appreciation for your family, to impress your significant other or maybe to treat yourself to something nice, there are many reasons people tend to overspend during the Christmas season.
Back in 2019, Americans were reported to have racked up about $1325 in holiday debt which was up 8% from the year prior, according to MagnifyMoney. Over the years, it’s been seen that holiday spending has been edging higher and higher every year. Will this year be any different?
There seems to be a major consensus in the mix: this year: “Do Not Overspend”. Financial experts have cautioned consumers against overspending and have even launched campaigns such as “In The Black Friday” by the National Financial Educators Council aimed at encouraging people to avoid debt this holiday season and save for longer-term financial goals.
This year is one for the history books and the way this will affect consumer habits over the coming years is still not fully clear. Will people be itching to show some love in the form of gift cards and wrapping paper, or will people lean towards making a collage of their favorite moments and hit things up DIY style for Christmas? Like the gifts sitting under your tree, we’ll have to wait if we want to see what it is.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.