Budgeting during the holiday season helps avoid debt

Budgeting during the holiday season helps avoid debt (NTV News)

The season of holiday shopping has arrived and people are busy buying gifts for family and friends.

A study done by NerdWallet says people purchasing gifts are planning to spend an average of $606 this holiday season.

"Well I have 13 grand kids so I have to take and budget how much I spend on each child, and then on each family how much I spend," said one holiday shopper Connie Wittrock.

According to NerdWallet's second consumer holiday shopping report, holiday shoppers plan their shopping ahead of time.

"Hitting up sales and stuff before Black Friday is sometimes more of an advantage long term for some people," said another holiday shopper Amber Paitz.

But many people put off making purchases until after Thanksgiving.

"I tend to shop more towards and closer to Christmas," said Wittrock.

A financial adviser and part-owner at Stonebridge Insurance and Wealth Management says it's important to set a budget.

"The big thing is you need to be very intentional about how you're going to spend your money and how much you're going to spend," said financial adviser Scott Nachtigal.

Baby boomers plan to spend the most at an average of $802 and millennials will spend the least at an average of $434, according to the report.

"This year is a little bit tighter so I'm spending less on my kids than what I did last year," said Wittrock.

From the same study, more than a quarter of Americans who shopped during the 2016 holiday season did not have a budget, while 24 percent went over their budget.

"I would really steer away from using credit cards to buy gifts unless you knew you were able to pay off those credit cards when they were due at the end of the month," said Nachtigal.

He says some of the best gifts are spending time with your loved ones.

"Those memories will not be forgotten anytime soon where a something, a box, a gift might be forgotten by the next year," said Nachtigal.

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