Dave Ramsey: 9 Holiday Expenses You’ll Regret Spending Money On
Written by
Heather Taylor
Edited by
Gary Dudak
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Every holiday season comes with its fair share of “extras.” According to a Ramsey Solutions article from money expert Dave Ramsey, extras are things we think we need from stores. Think expensive gifts or gift-wrapping services. When we agree to pay for extras, however, we end up spending a lot more money on stuff we could either live without or DIY.
This year, keep your eyes peeled for nine holiday expenses you’ll regret spending money on.
Extended Warranties
Not sure how an extended warranty differs from a traditional warranty? The Federal Trade Commission (FTC) said the difference is an extended warranty typically covers different issues than a manufacturer’s warranty and costs extra.
While you may think you cannot live without an extended warranty, Ramsey Solutions states that these plans are usually massive money makers for the retailer. These plans net commissions and a major profit for the store, but are not generally not financially beneficial for the consumer.
Store Credit Cards
Most retailers have their own store credit cards and will try to get shoppers to open an account. Usually, a discount is offered to entice shoppers into signing up.
Ramsey Solutions warns consumers to avoid taking on the risk of getting into store credit card debt. Consider if an emergency were to happen and you needed to allocate the money you would have put toward paying off the store credit card balance to a priority bill instead. You might find yourself stuck making just the minimum monthly payment for holiday purchases you didn’t really need as rising interest rates continue to inflate your balance.
Buy Now, Pay Later (BNPL) Plans
Whether you’re doing your holiday shopping online or in-store, most shoppers are reminded of the existence of buy now, pay later (BNPL).
BNPL is where a total bill is split up into several smaller payments which are paid over time. The post on Ramsey Solutions highly advises against BNPL plans. Consumers who miss even one payment will often need to pay expensive fees and interest rates. Instead, consider paying for holiday gifts with cash or choosing less expensive gifts to avoid ending up in a BNPL predicament.
Expensive Electronics
It’s not unusual to see consumers shopping for new electronics during the holiday season. New video game consoles or laptops are gifts that many hope to receive.
They’re also incredibly expensive, especially if you’re shopping for several people who all want the latest iPad. If you need a less expensive gift, the post on Ramsey Solutions recommends exiting the electronics aisle and checking out personalized and affordable gifts instead.
Exercise Equipment
It’s not necessarily a bad thing to buy exercise equipment. There are just savvier approaches to shopping than visiting a retailer and paying hundreds of dollars.
As recommended by Ramsey Solutions, consumers may consider checking out their local Facebook Marketplace to find inexpensive, like-new exercise equipment to gift their loved ones.
Gift-Wrapping Services
There’s just one exception to the rule of declining gift-wrapping services: Ramsey Solutions recommends taking advantage of the service if it’s free.
If it’s not free, you can wrap your gifts on your own. Pick up a few rolls of wrapping paper, bows or gift bags from the dollar store and start wrapping.
Overnight Shipping
Why do you need to pay for overnight shipping for holiday gifts if you start shopping early? You can’t argue with this type of logic from Ramsey.
If you need to order gifts online, do it a few weeks ahead of Christmas. That way, you can still select the free shipping option and know the gifts will arrive on time.
Everything on Your Kids’ Christmas Lists
You don’t need to pile dozens of gifts under the Christmas tree, no matter how good the kids have behaved this year. Ramsey Solutions recommends setting a reasonable budget for each child and sticking to it.
Similar spending rules also apply to stocking stuffers. Set a small budget amount per stocking and don’t overstuff it.
Christmas Cards for Everyone
You don’t need to send out a Christmas card to everyone who follows you on Instagram or pay for an expensive holiday photoshoot.
If you’re looking for ways to cut card costs, Ramsey Solutions recommends finding companies that offer coupon codes for printing cards and limiting the number of Christmas cards to five to 10 of your closest friends and family members.
More From GOBankingRates
