How To Control Your Holiday Spending
The Holiday season is terrific, but it can be expensive. So, how do you keep your shopping spending in check? Here is a suggestion. The Hoptown Chronicle says the average…
CORTE MADERA, CALIFORNIA – MARCH 31: Shoppers carry shopping bags as they walk through The Village at Corte Madera on March 31, 2022 in Corte Madera, California. According to a report by the Commerce Department, inflation is taking its toll on the economy with consumer spending inching up a weak 0.2 percent in February compared with a 2.7 percent jump in January.
x(Photo by Justin Sullivan/Getty Images)The Holiday season is terrific, but it can be expensive. So, how do you keep your shopping spending in check? Here is a suggestion.
The Hoptown Chronicle says the average American plans to spend over $1,000 on gifts this holiday season. Business professor Jay L. Zagorsky suggests using cash instead of credit to control spending. “Using cash helps you spend less because of the 'pain of paying.” Spending paper money causes a momentary feeling of regret, research in consumer psychology shows. This, in turn, helps slow down purchases. People don’t feel the same pain when they use credit cards, because the bill comes due in the future. In the long run, paying cash for things is cheaper because you don’t have to pay interest on purchases. About half of all credit card users carry a balance each month. With the average balance currently over $6,000, the interest alone on charging gifts can cost you hundreds of dollars.’’
Probably the biggest problem here is most people depend on credit cards when they don't have the cash. It's really hard to not spend but keep a budget in mind and try to stick with it.
