6 Holiday Expenses the Middle Class Should Skip This Year
Written by
Cynthia Measom
Edited by
Jenna Klaverweiden
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Amid twinkling lights, beloved holiday songs and the thrill of finding that perfect gift, it’s easy for shoppers to get swept up in the magic of the season and spend more money than they can afford — especially those in the middle class.
However, once the excitement fades, those impulsive purchases can lead to financial stress that sticks around long after the holidays.
To avoid regret, here are some holiday expenses the middle class should skip this year.
Also see five key signs you’re already spending too much this holiday season.
Luxury Items and Services
Mafe Aclado, the general manager of Coupon Snake, said that, in general, she’s found that those in the middle class spend moderately when it comes to luxury items and services. However, during the holiday season, she said they tend to throw caution to the wind, giving in to social pressure, becoming emotional spenders and splurging excessively on luxury items when buying gifts for family and loved ones.
“Sometimes, the hidden motive for this is the fact that they are desperate to show and prove to others that they have had a good financial year,” she explained. “However, this is at the top of the list of things the middle class should definitely skip this year, because this unhealthy spending disrupts their budget and increases their financial stress and anxiety.”
Professional Family Photos
Aclado acknowledged that the need to have your pictures taken as a family during the holiday season is perfectly understandable. However, she pointed out that paying to have a professional photographer take your photos every year is simply not the financially prudent thing to do — especially when you can take your own photos with your smartphone. You can even edit them and add special effects.
Elaborate Outdoor Christmas Lights or Displays
It might be best for the middle class to skip out on elaborate outdoor light displays. Steven Kibbel, a financial planner, entrepreneur and chief editorial advisor at Gold IRA Companies, said that between buying lights and running up the electricity bill, extra costs can add up quickly.
“A better option could be sticking to simple, energy-efficient LED lights you already own or focusing on indoor decorations where you can enjoy them more,” he said.
Store-Bought Gift Baskets
Store-bought gift baskets are convenient for holiday gift exchanges or to give as hostess gifts. However, they are often expensive.
“The quality of these pre-packaged baskets often doesn’t match the price, and a lot of the contents can be underwhelming,” Kibbel explained. “A more thoughtful and cheaper alternative would be to make your own. You can handpick better items, personalize them and probably spend less in the process.”
Holiday Travel
Kibbel said that flights, hotels and even gas prices are higher than ever during peak holiday times — expenses many middle-class families don’t need.
“Instead of traveling long distances, consider staying local and hosting a gathering at home or even exploring what your own town has to offer,” he suggested. “A staycation can be just as relaxing without the hassle and expense of holiday travel.”
Expensive Toys and Gadgets
The middle class should steer clear of expensive toys and gadgets too.
“These are heavily marketed during the season, tend to go down in quality or aren’t as durable as they used to be,” Kibbel said. “You might find that kids enjoy experiences more than stuff. Instead of buying another gadget that’ll be outdated or broken in a few months, look into activities or events you can enjoy together, which often creates more lasting memories without draining your wallet.”
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