‘Tis the season to shop, and a new holiday survey from American Express Pay It Plan It. found that 86% of millennials (23 to 38) spent more money during the holidays last year than they planned to. Of those who overspent, about one in five (21%) went over budget by approximately $500 or more.
Electronics (69%) were the most common gift that caused millennials to overspend, compared to children’s toys (57%), clothes (53%), jewelry (38%), food or drinks (33%) and other gifts (4%).
This holiday season, 88% of millennials expect to spend $100 or more on someone. Among those respondents, spouse/partners are most likely to receive more expensive gifts. See below for a breakdown of who else is expected to receive gifts worth $100 or more.
Who millennials expect to spend $100 or more on when holiday shopping this year
|Recipient||Percent of millennials who plan to spend $100 or more|
CNBC Select spoke to Nicole Lapin, money expert and New York Times bestselling author, on easy ways to curb your spending this year.
Make a budget
Half of millennials plan to make a budget when holiday shopping, but budgets don’t mean anything if you don’t follow them. And the majority of millennials (84%) say it’s harder than it sounds to stick to a holiday spending plan.
“Make a list of everyone you want to gift and how much you want to spend,” Lapin says. “Approach your holiday shopping just like you would approach a trip to the grocery store. Plan ahead, write a list and know what you are searching for so you are less prone to the pitfalls of online shopping.”
Redeem credit card rewards
If you accumulated a lot of credit card points over the past year, now is a good time to use them. Consider redeeming credit card rewards for gift cards, merchandise, cash (as a deposit into a bank account), travel or statement credits.
Some cards may even offer bonus rewards if you redeem through travel portals. The Chase Sapphire Preferred® offers 50% more value on points redeemed for travel via Chase Ultimate Rewards®.
Look for deals
Avoid unnecessary purchases
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