It’s the official start of the holiday spending season, and this year Americans are expected to spend a record amount of money.
The National Retail Federation estimates consumers will spend a record $902 per person on average this holiday season on gifts, decor, and seasonal items.
“If the price of everything goes up, it makes sense that you spend more,” said shopper Nigel Tunnacliffe.
The forecast comes as national data shows Americans are carrying more debt.
A new WalletHub study released in November found nearly half of Americans still have lingering debt from last year’s holiday season.
Deals from the Black Friday/Cyber Monday weekend can add fuel to the fire.
“It increases my shopping behavior because they’re limited,” said one Seattle shopper on Sunday. “It increases your want to actually get it because you’re like, ‘Oh the sales are limited, I should get it now.’”
Adobe Analytics also predicts that buy-now-pay-later programs will also grow this year.
While these tools can be appealing, experts warn they can lead to overspending. Research cited by the Federal Reserve of New York found these tools can lead consumers to spend 20% more than they otherwise would.
“I don’t trust myself to remember,” said Elizabeth Merrill, who said she’s never used a buy-now-pay-later tool.
While some shoppers might get in over their heads, many who spoke to KIRO 7 were assured they had their shopping under control.
“I used to spend more because it’s cheaper,” said Tina Chen, referring to holiday sales. “I want to, this year, really use my money well.”
To avoid overspending this holiday season, stick to a budget and shopping plan before you start buying products. If you are easily triggered by sales, consider disconnecting from your devices or unsubscribing from marketing emails.