CLEVELAND — More than 30 million Americans say they’re still in debt from last holiday season. Part of it’s about the pressure to buy. For others, the spirit of giving makes them throw budgets out the window.
The holiday season is a recipe for overspending and it can lead to serious financial implications.
Money Coach Lynette Khalfani-Cox says it’s especially true as we head into the final stretch.
"There's a tendency to get caught up in the holiday shopping spirit and retailers are pretty savvy about getting you to buy more,” she says.
That’s why we need to hit the brakes and use our brain before we buy.
Dr. Carolyn Ivers-Landis is a psychologist with University Hospitals says it pays to think ahead. "When you're about to buy something for someone,” Dr. Ivers-Landis says, “think to yourself am I moving toward or away my values? Your value might be having a retirement that's all planned and saved for. And spending a lot of money might move you away from that value.”
This applies even if your value is spreading Christmas cheer. Self-described shopaholic Amy Schultz is the CEO of SmartGirlMoney. She says being generous doesn’t mean you have to drown in debt.
"I plan out what I'm going to buy for everybody and I bring cash so I'm not bringing my credit cards," she says.
Tip One: Less money means less temptation to buy something just because it’s on sale.
Tip Two: A major discount on an overpriced item can still mean it’s overpriced.
"If something is 80% off, it's still $75...I only wanted to spend $50,” Schultz says. “It's not in your budget, it's not worth it just because you're seeing those big percentages."
Those sales are especially seductive to parents. A whopping sixty-one percent of them say they would damage their credit score just to make their kids happy.
Tip Three: Bring a shopping bag and when it’s full, you’re done.
This makes it harder to buy until you’re broke!
Dr. Ivers-Landis says “If you’re pushing a cart around, it’s easy to see random things and throw them in. Whereas if you have a bag, you don’t have as much room for items.”
But no matter what you walk out with, Dr. Ivers-Landis says don’t judge yourself. The holidays are stressful enough!
"We all might at the last minute run out and think, 'Oh, the stocking isn't full enough and we need to buy some more things,” she says. “And rather than beating yourself up, like, why didn't I stop? you could be like, 'This felt good. I wanted to do that. I wanted to have a brimming-over stocking, so I bought a bunch of stuff and that's OK.'”