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The holidays come quicker than you think. Americans typically spend an average of $1,200 annually on holiday presents, according to the National Retail Federation. Georgia Gwinnett College business professor Dr. Cathy McCrary said starting to budget now can help avoid stress and overspending later.

Dr. S. Cathy McCrary

“It’s been said that ‘when you fail to plan, you’re planning to fail,’” McCrary said. “This wisdom also applies to spending decisions.”

McCrary recommends creating a simple plan that:

  • identifies who you want to buy gifts for,
  • lists the types of gifts you’d like to give, and
  • includes the average retail price of each item.

By setting a plan early, shoppers gain discipline, understand price points before sales begin, and have a clear savings goal for major events such as Amazon Prime Days, Black Friday or Cyber Monday.

Strategies for Saving:

  • Determine a realistic savings target (even if it doesn’t cover everything on your wish list).
  • Break down how much you can set aside each pay period, based on your income and other financial responsibilities.
  • Create a separate savings account and set up automatic transfers to stay on track.

After putting this plan into action, shoppers may discover they spend less than expected, leaving extra money for other priorities. Most importantly, McCrary said, sticking to a budget can help avoid holiday debt.

“And that’s something to be jolly about,” she said.