5 Things People Overspend On During the Holidays — and How To Save on Each
Written by
Josephine Nesbit
Edited by
Jenna Klaverweiden
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Holidays often pose budget challenges, thanks to holiday deals, sales and gift-giving — but there are always ways to save.
According to a recent Experian survey, 89% of consumers admitted they’re tempted to spend more than they should during the holidays. Additionally, 94% said they’d be tempted to make an unplanned purchase if the item were on sale. Over half (55%) also said that holiday deals have caused them to overspend, particularly on gifts for others.
But shoppers are determined to save this year, with 67% stating it’s more important to save money than give the best gift and 69% feeling motivated to improve their finances before the holiday season.
Here are the top five categories where holiday shoppers typically overspend, based on Experian’s survey results, and how to save on each.
Gifts for Others
Three-quarters (75%) of respondents said they typically overspend on gifts for others during the holidays. One way to save money on gift-giving is to embrace regifting or repurpose low-cost gifts.
Regifting often has a negative connotation, which is why it’s important to be strategic. Etiquette expert Lisa Mirza Grotts previously explained to GOBankingRates that her No. 1 rule for regifting is to never regift within a specific social circle. Make sure the person receiving the gift doesn’t know the friend who gave it to you.
It’s also good to make sure the gift isn’t used and to freshen up the package. You should also tailor the gift to the receiver and make sure it’s not an obvious regift.
Sale Items
Sale items are tempting, but when you feel obligated to make a purchase even when you don’t need it, it can be a problem. Over one-quarter (27%) of survey respondents said they overspend on sale items they don’t need.
According to Forbes, research shows that powerful marketing can resonate with individuals and trigger an immediate desire for a product or service or a fear of missing out. Impulse buyers are also emotionally driven, and even a store’s ambience and display can influence emotions and decisions.
To avoid overspending on unnecessary items, create a list and stick to it. Pause to reflect before purchasing and try to pay with cash instead of a debit or credit card. Swiping a card makes it easier to overspend, but if you physically have to hand over cash, you can see exactly how much you’re giving away.
Going Out To Eat
Twenty-five percent of Experian’s survey respondents said they overspend when going out to eat during the holidays. One way to save is by making meals at home, but you can still go out and save money.
Look out for coupons from your favorite restaurants — buy one, get one offers; combo deals; family specials; etc. — that you can redeem for a discount on your restaurant bill. When you go out, try grabbing an early dinner during happy hour, opting for water and skipping an appetizer. If the restaurant is known for large portions, consider splitting an entrée with someone else at your table.
Holiday Meals
Holiday meals are another area where shoppers tend to overspend. According to the survey, 25% of respondents said they typically overspend on holiday meals.
Another survey by Empower showed that nearly a third (28%) of Americans will spend more money on their holiday dinner menu this year than last year. To save money, 20% of respondents are asking their guests to contribute something to the holiday dinner, and 16% who hosted last year don’t plan on hosting a holiday dinner at their house this year.
Gifts for Themselves
While the holidays are the time of the year to buy gifts for others, they’re also a time when you can save money on gifts for yourself. Twenty-two percent of respondents to Experian’s survey said they overspend on gifts for themselves.
Before shopping, set a budget. Deals are tempting, but it’s also important to be honest with yourself about what you can afford. Allocate a specific amount for “self-gifting,” and if you must, limit your exposure to sales. Focus on needs, not wants, even when you’re tempted by discounts.
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