You're 'wired' to overspend during the holidays, expert says — here's what to do about it
Published On Nov 29, 2024, 11:07 AM
The article discusses the tendency of consumers to overspend during the holiday season, driven by behavioral economics and social pressures. A recent Gallup poll indicates that Americans expect to spend an average of $1,014 on gifts in 2024, up from last year's $923. About 10% plan to use their emergency funds for holiday spending, and many will rely on credit, with a significant portion still dealing with debt from previous holiday seasons. Experts suggest strategies such as developing a spending plan, tracking purchases, setting expectations for gift-giving, and reflecting on long-term financial goals to manage holiday spending better.
Stock Forecasts
XRT
Positive
The increase in holiday spending expectations suggests strong consumer confidence, which may positively impact retail stocks. Companies that rely on holiday sales could see a boost in sales and stock prices due to higher consumer expenditure. Retail ETFs, which group together various retail stocks, may also benefit from this spending trend, particularly those focusing on e-commerce transactions as people increasingly shop online.
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