It’s beginning to look a lot like Christmas, but for many New Jersey families this holiday season, the financial crunch is starting to look more like a scene from the Grinch.
Despite facing economic challenges such as inflation, high energy costs, and elevated fuel prices, many in New Jersey are determined to maintain the spirit of giving, even if it means relying more heavily on credit cards.
A recent survey highlights that parents in the Garden State are leading the nation in holiday spending for their children, planning to allocate an average of $712 per child.
This figure significantly surpasses the national average of $461. However, this generosity comes at a cost, with 49% of parents nationwide anticipating going into debt due to holiday shopping, and 65% of these relying on credit cards to fund their purchases.
The broader American populace mirrors this trend, with nearly one in four individuals expecting to incur credit card debt during the holiday season, averaging about $1,173. This statistic underscores the financial strain many are experiencing as they strive to celebrate the holidays amidst rising living costs.
Millennials, in particular, are feeling the pinch. Data indicates that 88% of millennials’ Black Friday spending was charged to credit cards, marking an increase from previous years. This reliance on credit suggests that younger generations are grappling with the economic pressures of the season, often turning to credit to bridge the gap between their financial realities and holiday expectations.
Financial experts advise caution, emphasizing the importance of budgeting and mindful spending to avoid the pitfalls of debt. Strategies such as creating a detailed budget, managing expectations with loved ones, and considering alternative gift options like homemade or experiential presents can help mitigate financial stress.