Consumers are set to spend the second-highest amount on record this holiday season — about $890 per person — according to the National Retail Federation.
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Unfortunately, holiday spending is emotional, which can result in impulsive choices. And this year, like every other, some of those splurges will turn into spending regrets.
Overspending on Children
It can be tempting to play into the magic of Christmas and give your children what they’ve been dreaming about, whether it’s the newest tech or a toy with a steep price tag. About 40% who’ve splurged and gone into debt admit doing so for their children, according to Lending Tree.
Emily Irwin, head of advice relations at Wells Fargo, told Parents magazine that during the holidays, parents feel pressured by their peers to create “surprise and delight” for their children and for their children to have things worth showing off.
To course-correct, people should give their children gifts that are more intentional. For example, use the four-gift rule: One gift they want, one they need, one to wear and one to read.
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Overspending to Impress Others
Over a quarter of Lending Tree survey respondents said they’d overspent on gifts to impress others. Erin Pash, LMFT, said that people who have anxiety about other people’s reactions to the gifts they give may spend more on gifts in an attempt to avoid ruffling feathers or appearing to be cheap, reported The Chalkboard Magazine.
For those who feel this kind of pressure, Pash suggested clarifying your values by asking yourself what you would want the holidays to look like if there was no judgment. Then, she recommended using your answer like the North Star to guide your decisions. For example, your perfect holiday could be that you’d like to give homemade gifts instead of spending too much on store-bought ones.
Overspending on Expensive Gifts in General
About 25% of survey respondents said they overspend because they like to give expensive gifts in general. But the reason behind their desire goes much deeper.
Some lavish gift-givers may struggle with low self-esteem and seek validation through their behavior while others may be trying to fill an emotional void, according to NeuroLaunch. Still, others may be trying to exhibit power and control.
For those who are compelled to give expensive gifts, it may be worth consulting a therapist to dig into the underlying emotions that may be responsible for your desires and work to resolve them.
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This article originally appeared on GOBankingRates.com: Holiday Splurges People Regret Every Year — and What To Do Instead
