COLUMBUS, Ohio — It’s the holiday spending season, but how much money are consumers looking to spend this year?
The 2023 Deloitte Holiday Retail Survey says consumers will return to pre-pandemic spending levels. The survey pointed to $1,652 spent on average this holiday season. In 2022, the average was $1,455. Consumers plan to adjust their budgets this year, buying one less gift, the survey found.
JPMorgan Chase has some advice to make sure you aren't spending more than you are earning.
“Have a plan, this is a busy time of the year,” said Erica Wicks, vice president and Community Manager from JPMorgan Chase. “Just like we plan for dinners, travel, have a plan, stick to it, and review it. So make a list. Check it twice."
JPMorgan Chase recommends the SMART method for budgeting:
- Specific: Be clear about what you want to achieve. Instead of saying, “I want to save more,” be specific and say “I want to build a six-month emergency fund.” This helps you relate your progress to something tangible.
- Measurable: Your goals should have a clear, measurable outcome. This could mean targeting a specific amount of money you aim to save.
- Attainable: Setting a goal that’s too difficult to achieve might make it harder to stay motivated. If you’re aiming to save, ensure the amount is something you can realistically set aside given your current income and expenses, based on your budget reviews.
- Relevant: Relevant goals are often tied to your current circumstances. If you’re highly in debt, paying it off may be more relevant than saving for a vacation. It’s about choosing goals you think will bring the most value to your financial security and overall well-being.
- Time-based: Attaching a timeline to your goals and measuring your progress might help you stay on track. Whether it’s saving a certain amount or paying off your student loans in two years, the slight pressure of time may be exactly what you need to stick to your budget.
“Looking ahead to scope out what the deals might be within the different mobile apps that we have, and then others as well. So then you can get something that you already plan to buy, but cheaper, because you're using the points, the rewards, the cashback options,” Wicks suggested.
She also said if you need to blow the budget, now is the time to pick up a seasonal side gig so you don’t fall into debt this holiday season.
JPMorgan Chase will host a budgeting and saving session at its Lockbourne Branch this week. It is open to the public and you do not have to be a customer to attend.