Holiday Spending Plan for 2016

Based on statistics, the average U.S. Consumer spent about $ 830.00 on Christmas gifts last year. That is an increase from the $ 720.00 spent in 2014. During the “Great” Recession, in 2008, the average US Consumer spent $ 616.00 on Christmas. (I was curious)­­­­­­­­

Of the 52% with added credit card debt, those who will not be paying it off immediately are projected to have it paid off by the end of May. I could not contain my excitement at this point and I had to chew on more numbers. (Bear with me)

• Credit card debt of households in the US as of 1^st Quarter 2009 was 2.63 Trillion
• Credit card debt of households in the US as of 3^rd Quarter 2015 was 3.5 Trillion

This had me questioning the changes in our financial behaviors. So I researched further and compared average Income, average savings, and average consumer debt and this is what I found…

• Make a list of the people you spent money on this past Christmas and the amount you spent
• Add up what you spent. If you need to make adjustments, now’s the time
• Divide the total amount by the number of months prior to you having to spend the money. I used 8, because if counting February there are 8 months until September (when I like to shop online)
• I would suggest setting up direct deposit now for the monthly amount you need to save. You can have it payroll direct deposited or set up an automatic re-occurring transfer from your checking into your savings account
• If you have not been the most disciplined saver in the past, try opening an account at a new bank or credit union that you do not have accounts with. And make sure it isn’t close to home or work and then set up the direct deposit. This will make it more difficult for you to take the money out
• Many institutions may offer a “Christmas club” account designed for just this purpose

• With online growing, competition is fierce among retailers. It is driving down the cost which translates into savings for you
• I noticed most online purchases were made in September and October, which would make sense to allow for shipping. So, I would keep your eyes open for deals during this time of the year. Black Friday and Cyber Monday have new competition and in some cases, the same deals
• Always search for coupons or promo codes before completing your transaction. You’d be surprised at how easily you can get a discount these days if you look
• Always try to get free shipping or ship to store for free, shipping can be a large expense

For those of you who can’t pay off the 2015 left over debt immediately, check out my article that gives you a step by step plan to knock it out:

You may also meet with a certified Financial Services Specialist to help you create a budget and savings plan. Call us at 800-355-2227 or visit www.apprisen.com to schedule an appointment.

Resources provided by: magnifymoney, statista, National Retail Federation, Federal Reserve, US Treasury