Behavioral Finance Expert Warns Against Holiday Overspending

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Finance News

Behavioral Finance,Holiday Spending,Financial Goals

A behavioral finance expert warns that consumers are naturally inclined to focus on short-term gratification, leading to overspending during the holiday season. Financial planner Brad Klontz provides tips on how to manage holiday spending and maintain long-term financial goals.

Behavioral finance expert Brad Klontz warns that consumers tend to prioritize short-term gratification over long-term financial goals, especially during the holiday season. Americans are expected to spend an average of $1,014 on Christmas or other holiday gifts in 2024, a significant increase from $923 in 2023. Some consumers plan to dip into their emergency funds or prioritize gifts over household bills.

Klontz suggests developing a spending plan to avoid overspending and maintain long-term financial health

 

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