As the holiday season unfolds, WalletHub has published data revealing substantial variations in holiday spending across American cities. Distinct budgets characterize cities from diverse economic landscapes, influencing how residents manage their holiday finances.
Holiday sales in 2024 are anticipated to rise between 2.5% and 3.5% from the previous year, surpassing $980 billion, according to WalletHub. The average American is expected to spend $1,778 this season, fueled by a positive economic outlook and perceived inflation.
WalletHub’s detailed analysis of holiday budgets covers over 500 U.S. cities, examining factors like income, age, debt-to-income ratio, and spending habits. Newton, Massachusetts leads with a budget of $4,206, followed by Sunnyvale, California at $3,845 and San Jose, California at $2,828. On the lower end, Lauderhill, Florida, Hawthorne, California, and Bloomington, Indiana have budgets of $217, $396, and $419 respectively.
These varying budgets highlight the complexities of holiday spending, where factors such as local cost of living and average resident income play significant roles. Despite the economic optimism, rising household credit card debt is a concern, as emphasized by WalletHub analyst Chip Lupo. He advises maintaining a budget aligned with one’s financial situation to avoid unsustainable debt post-holidays.
Experts offer practical advice to prevent overspending during the holidays. Amber M. Epp, marketing associate professor, suggests making lists and setting budgets to avoid impulsive buys, especially under time pressure. Dr. Altaf Merchant recommends cost-free traditions, like spending quality time with loved ones, to alleviate seasonal stress. Meanwhile, Tracy Lu warns of the influence social media may have on spending habits, urging caution against emotional purchases.
Ted Rossman from Bankrate also highlights the importance of managing credit card debt during this high-spending period, discussing strategies to keep financial health intact. Overall, the data paints a picture of a nation navigating economic cheer with financial prudence during the festive season.
Holiday spending patterns across the United States illustrate the diverse economic conditions faced by residents in different cities. As spending is expected to increase, maintaining financial discipline remains crucial to preventing future debt. WalletHub’s insights serve as a guide for consumers aiming to balance holiday enjoyment with financial responsibility.
