{"id":14745,"date":"2021-01-22T10:41:07","date_gmt":"2021-01-22T16:41:07","guid":{"rendered":"https:\/\/www.lexingtonlaw.com\/blog\/?p=14745"},"modified":"2024-05-06T13:30:22","modified_gmt":"2024-05-06T19:30:22","slug":"how-much-should-you-spend-on-christmas","status":"publish","type":"post","link":"https:\/\/www.lexingtonlaw.com\/blog\/finance\/how-much-should-you-spend-on-christmas.html","title":{"rendered":"How much should you spend on Christmas? 13 spending statistics"},"content":{"rendered":"\n
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The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. <\/em>See Lexington Law\u2019s editorial disclosure for more information.<\/em><\/a><\/p>\n\n\n\n

Christmas time is a joyful season for many, but unless you\u2019re intentional with your finances, it can quickly become a source of stress.<\/p>\n\n\n\n

When determining how much you should spend this year, it makes sense to consider how much others typically spend. For an average baseline of how much you should shell out this year, many financial experts suggest calculating one percent of your annual income to arrive at a figure that won\u2019t break the bank.<\/p>\n\n\n\n

With each passing year, the holiday season\u2019s focus on consumption seems to loom larger than the last. Grandiose store displays and nonstop commercials pressure us to spend far more than we can afford\u2014leaving many Americans with the unfortunate burden of credit card debt come the new year.<\/p>\n\n\n\n

According to NerdWallet\u2019s 2019 Holiday Shopping Report,<\/a> 71 percent of shoppers planned to use a credit card to fund their holiday spending. While the use of credit cards during the holidays might not come as a shock, the debt many are left with long after the holiday season ends is more concerning: Roughly 48 million Americans were still paying off credit card debt<\/a> from their 2018 holiday expenditures in 2019, according to the same report.<\/p>\n\n\n\n

If you\u2019d rather avoid paying off this year\u2019s holiday well into next year, all you need is a bit of preparation and a plan of action to keep your spending in check.<\/p>\n\n\n\n

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How to Determine How Much to Spend on Christmas This Year<\/h2>\n\n\n\n

When figuring out how much you should shell out for your Christmas spending, it can be helpful to look at some national averages as a baseline. According to a Gallup study<\/a>, Americans planned on spending an average of $942 on gifts in 2019.<\/p>\n\n\n\n

Compare this to the average household income of around $69,000 as reported<\/a> by the U.S. Census Bureau, and you get an idea of what a reasonable amount might be for you. If you make $34,500\u2014half of the national average\u2014a general guideline could be a gift budget of around $471, or half of the average spent on gifts. Financial experts recommend spending around one percent of your take-home pay on gifts.<\/p>\n\n\n\n

To be sure you can afford your holiday spending, creating a budget ahead of time is your best bet. It doesn\u2019t have to be elaborate, but having a clear picture of your finances up front can save you stress down the line.<\/p>\n\n\n\n

Start by listing out all your monthly fixed expenses\u2014the expenses you know you must pay each month. This includes food, home utilities, gas and other monthly expenses like cable and phone bills. Subtract your monthly expenses from your monthly income and see how much you have left. This is your disposable income.<\/p>\n\n\n\n

From there, decide how much of your disposable income you can put towards<\/del> your Christmas spending. If you can put all of it in, that\u2019s great! If you\u2019re worried it\u2019s not enough, consider where in your current budget you can reign in your spending in order to bulk up your holiday budget.<\/p>\n\n\n\n

Holiday Spending Statistics<\/h2>\n\n\n\n