A behavioral finance expert highlights how consumers tend to prioritize short-term gratification during the holiday season, leading to overspending and neglecting long-term financial goals. With the average expected spending on holiday gifts reaching $1,014 in 2024, experts recommend developing a spending plan to manage finances effectively.
Consumers are inclined to prioritize short-term gratification over long-term financial goals during the holiday season, according to a behavioral finance expert. With Americans expecting to spend an average of $1,014 on holiday gifts in 2024, experts advise creating a spending plan to avoid overspending and neglecting essential expenses. Roughly 10% of consumers anticipate tapping into their emergency funds for gifts, and 9% intend to prioritize purchases over household bills.
Furthermore, 28% are still repaying credit card debt from the previous year's holiday season. Behavioral finance expert Brad Klontz explains that humans are naturally wired to seek immediate satisfaction, making it difficult to maintain long-term financial goals during the holidays
Holiday Spending Financial Planning Behavioral Finance Consumer Behavior Emergency Funds Credit Card Debt
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