Holiday spending expected to rise, but budgeting remains a challenge for many families

SOUTH JORDAN — The National Retail Federation forecasts holiday retail sales during November and December will increase compared with last year, reflecting continued consumer spending even as many households face higher costs for everyday necessities.

For some shoppers, however, stretching holiday dollars remains a challenge.

"It's really frustrating," said Heather Wade, a shopper and mother.

Wade said her family relies on a combination of credit cards and savings set aside throughout the year to cover holiday expenses.

"We do use a credit card, but then also it's coming from savings that we have saved up throughout the year," she said.

Financial planner Jeff Busch said creating a spending plan before heading to stores or shopping online can help families avoid overspending.

"Maybe leave yourself a cushion," Busch said. "Set a budget and maybe 10 or 20% either way, and just stick to it."

Busch also recommends shoppers be cautious when using credit cards for holiday purchases.

"If you can't pay that off within that billing period, that 30-day period, then it starts charging you interest," Busch said. "And everything you put on there costs you more."

Wade says she also saves money during the holidays by considering secondhand gifts. Wade said younger children often care more about receiving something thoughtful than whether it is brand new.

"They're fine with just really simple gifts," Wade said. "They don't know the difference if it's used or new."

For families already thinking ahead to next year's holiday season, Busch recommends setting aside money each month.

"Do your best to estimate what you spent in the past and then come up with a comfortable number," he said. "Then divide that up over the next 12 months and start putting that amount away."

Financial experts say that with a budget, careful use of credit and year-round planning, shoppers can avoid some of the financial stress that often accompanies the holiday season.