Yahoo Finance 12 of the Worst Christmas Holiday Money Wasters
Christmas is the season of giving, but that doesn’t mean it also has to be the season of overspending. The National Retail Federation projects that Americans will spend an average of $875 on gifts, food and decorations this holiday season — $42 more than they spent in 2022.
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Also: 10 Things Frugal People Never Buy During the Holidays
While that’s a significant sum, it can go very fast without a plan to spend it. And that plan sometimes can go awry when we waste money through impulse buys, poor management or trying to do too much.
To get the most out of your spending, here are 12 Christmas holiday money wasters to avoid.
1. Lack of a Budget
If you don’t set a holiday budget, you undoubtedly will be very surprised by just how much you spent when you add up all the receipts at the end of the season. Set a budget for gifts, food and decorations, and stay prepared to adjust if you find that something you intend to buy costs more than expected. You planned to serve prime rib for Christmas dinner but find it’s just too expensive? A ham dinner with all the side dishes could work just as well.
2. Not Making a List
Just as Santa does, it helps to make a list and check it twice — or more — as you prepare for the holiday. If you took that first step to make a budget, take another step and make a detailed shopping list. You’ll want to account for every gift recipient and the amount you expect to spend for that present, along with ideas that fit the budget.
3. Large Gift List
We all want to give gifts and bring joy to those nearest and dearest to us, but sometimes that gift list can grow awfully large. While it’s a nice gesture to buy a present for each of the members of your book club, maybe you all could agree to share a potluck dinner and an evening of friendship instead of exchanging gifts.
4. Paying With Credit Cards
It’s easy to whip out the plastic to buy your holiday gifts. It’s harder to pay off those gifts when the bills arrive in your inbox in January. CNBC reported that some store-branded credit cards now carry a whopping 33%-plus interest rate, with the Federal Reserve calculating the interest rate of all credit accounts at more than 21% in August, the end of the most recently reported quarter. If you decide to put your gifts on credit, think of how much that $49 hoodie you gave to your nephew will cost by the time it’s paid off.
5. Not Comparison Shopping
It’s easy to go to the website of your favorite retailer and click “Add to cart” on the gift of your choice, but is it the smartest thing to do? Not without shopping around for the best price. A decade ago, we would have thumbed through the ads in the Sunday newspapers to comparison shop. Today, you can do it in an instant via apps and websites such as Capital One Shopping or Price.com, which display prices and shipping rates from a variety of retailers.
6. Waiting Until the Last Minute
Doing your shopping early gives you peace of mind, offering a chance to better enjoy the holidays. All waiting until the last minute does is drive up stress — and prices. The best sales come before Christmas and not the week of the holiday, plus the selection has dwindled, often forcing you to settle for something that wasn’t exactly what you wanted. And if you find the perfect gift online, you’ll be forced to pay hefty overnight or two-day shipping fees.
7. Not Waiting to Buy
Or, sometimes, not waiting to buy something until after the holidays can cost you. If your significant other wants a new big-screen TV and you didn’t shop for one during the Black Friday deals, it’s best now to wait. The New York Times’ Wirecutter section reported that the sales on televisions beginning in mid-January and running until just before the Super Bowl in February offer some of the best prices. Instead of wrapping a big TV, wrap up an IOU with a gift card for lunch and an afternoon of shopping for the best model at a great price a few weeks after Christmas.
8. Going Big with Outdoor Lighting
Who doesn’t appreciate a grand light display when it comes to outdoor décor? If you want your house to draw the “oohs” and “aahs” from the passersby, it pays to invest in bulbs that are smaller and more energy efficient. Your utility bill will soar if you choose C9 incandescent bulbs – the big ones – instead of mini-LED bulbs. According to Duke Energy’s holiday lighting calculator, if you hang 10 strands of C9 bulbs and run them six hours a day, your monthly energy cost will reach $126. Mini-LED lights? You can power 10 strands for just $1.21, or 40 strands for less than $5 for a month. [x]
9. Splurging for Convenience
Time is money, as they say. And in the case of holiday preparation, saving time costs more money. If you want to add a lovely fruit or vegetable platter to your dinner buffet, you’ll be tempted to buy pre-cut fruits and veggies at your local grocery store to save time. Resist the temptation, however. For that convenience, you’ll pay about $5 per pound — well higher than the price of fruits and veggies by the pound.
10. Taking the Deal
You might want to jump at a deal. “Buy one, get one 50% off” or “Spend $50, get free shipping” are enticing. But is it smart to buy two, say, cookie sheets, when you only need one? Or adding $22 to your $28 order just to save $7 in shipping fees?
11. Buying Yourself a Gift
Surrounded by all the holiday merriment — and sales — we often spot things we want and pull out the debit card to make a spontaneous purchase. Unless you’ve included a gift for yourself in your seasonal budget, walk away. Unplanned buys, such as a gift for yourself, lead to holiday overspending.
12. Wrapping Overboard
A beautifully wrapped gift looks great under the tree, but once it’s in the recipient’s hands, the wrapping is destroyed in seconds. With a roll of quality wrapping paper priced at $5 or more, you could opt for cheaper brown paper from the dollar store or even the reverse side of grocery bags. Let the kids decorate the paper with stickers or holiday artwork, or dress it up with a ribbon and greenery taken from the outdoors.
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