I Asked ChatGPT About the Biggest Wastes of Money During the Holidays

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With the holidays approaching and prices continuing to climb, you may be thinking about how to save money this season.

I asked ChatGPT about the top 10 ways people waste money during the holidays. Here’s what it had to say.

1. Overspending on Gifts

• Why it happens: Pressure to impress, keep up with others or compensate emotionally.
• Typical waste: Buying too many gifts, pricey last-minute items or trendy gadgets that quickly lose appeal.
• Tip: Set a realistic budget per person and stick to it — thoughtful often beats expensive.

2. Fancy Gift Wrapping and Cards

• Why it happens: Stores push elaborate wrapping paper, ribbons and decorative bags.
• Typical waste: Spending $50 to $100 or more on materials that end up in the trash.
• Tip: Reuse bags, wrap gifts in kraft paper with twine or send digital cards.

3. Excessive Food and Drink

• Why it happens: Hosts want to “have enough for everyone.”
• Typical waste: Overbuying perishables, premium alcohol and desserts that go uneaten.
• Tip: Plan menus carefully and buy realistic quantities — leftovers can be a bonus, not a burden.

4. Impulse Stocking Stuffers

• Why it happens: Small items feel inexpensive, so shoppers toss extras into their carts.
• Typical waste: Spending $5 to $15 per item that’s forgotten by January.
• Tip: Give one or two meaningful small items or skip filler gifts altogether.

5. Last-Minute Travel Costs

• Why it happens: Procrastination or sudden decisions to travel.
• Typical waste: Premium airfare, surge-priced hotels and baggage fees.
• Tip: Book early, travel off-peak or celebrate locally.

6. Over-the-Top Home Decorations

• Why it happens: Desire to create a “perfect” festive atmosphere.
• Typical waste: Buying new themed décor every year, inflatables or excessive lights that spike energy bills.
• Tip: Reuse decorations, buy off-season or swap décor with friends.

7. Party Hosting Splurges

• Why it happens: Wanting to impress guests or replicate Pinterest ideas.
• Typical waste: Hiring entertainment, themed rentals or expensive party favors.
• Tip: Potlucks and DIY decorations often make gatherings more memorable — and affordable.

8. Not Using Sales Strategically

• Why it happens: Shoppers confuse “on sale” with “good deal.”
• Typical waste: Buying unnecessary items just because they’re discounted.
• Tip: Make a list before sale events like Black Friday and stick to it.

9. Forgotten Subscriptions and Memberships

• Why it happens: Holiday deals lure people into signing up for streaming services, boxes or apps they forget to cancel.
• Typical waste: Ongoing monthly charges that linger long after the holidays.
• Tip: Track free trials and set reminders to cancel before they renew.

10. Credit Card Interest and Fees

• Why it happens: Shoppers rely on credit without a payoff plan.
• Typical waste: High-interest charges can turn a $500 spree into $650 or more over time.
• Tip: Use cash or pay off cards in full as soon as possible.

ChatGPT also offered advice for avoiding these common holiday money traps. In many cases, overspending comes down to underplanning — impulse purchases, last-minute costs and credit card interest can all derail a budget. The best way to avoid them is to make a spending plan early and, most importantly, stick to it.

Of course, AI doesn’t know your personal feelings about holiday spending — and you shouldn’t take financial advice from a bot. But understanding how people typically waste money this time of year could help you stay on budget and enjoy a more stress-free holiday season.

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