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University of San Diego finance professor Dan Roccato tells “Fox & Friends First” the cost of Christmas and how to spend your money wisely in the new year.
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While these actions taken on a credit card may seem small, they can create a big problem, especially for the nearly one-third of Americans who still struggle to make payments last year. holiday balances.
NerdWallet’s Holiday Spending Report of September indicated that 28 percent of the 1,700 shoppers surveyed still haven’t gotten over their debt by the 2023 holiday season. Add this year’s seasonal costs to the mix and the “stress” that more than half of survey participants reported when thinking about vacation spending only increases.
Dan Roccato, professor of finance at the University of San Diego’s Knauss School of Business, blames inflation for persistent debt.
SHOPPING IN PERSON IS BACK IN A HOLIDAY SEASON TO REMEMBER
Nearly 30% of holiday shoppers surveyed said they are still paying for last year’s seasonal expenses. (iStock/iStock)
“The price of toys and other Christmas gifts are simply more expensive than they were three and a half years ago, so that’s the first problem that Americans are facing,” he told Fox News on Monday.
Financial guru Dave Ramsey shared the same advice with “Fox & Friends“Last Wednesday, he advised viewers to make a list of the people they intend to shop for and set a specific amount to spend on each.
“If you do that, and you put a name next to it, and then you add up those dollar amounts, you have what’s called a Christmas budget. If you stick to that, you won’t overspend.” he said.
Roccato suggested there are ways to spend money more wisely and head into 2025 with a more secure financial outlook. He thinks it comes down to a handful of smart money moves at the end of the year.
BUY NOW, PAY MORE THREE DISCOUNTS BOOST HOLIDAY SPENDING
Personal finance expert Dave Ramsey joined ‘Fox & Friends’ to discuss the Federal Reserve’s potential interest rate cut and how Americans can avoid overspending during the holidays.
“The key is that you want to, if you haven’t already, make a budget. If you can, stick to that budget and start the new year not with a credit card hangover, but with a lot of optimism . and a plan for what we can do better next year.”
He continued, “There’s still time, so you can contribute to that IRA if you haven’t already this year. Use your flexible spending account at work if you have one. Now is the time to make the appointment with the dentist you have. If you can do it before the end of the year, use those funds (for) those last-minute medical appointments.”
“Maybe you’re a contractor, or you get a bonus or something. If you can push that income into next year, do it. Throw it in next year’s tax bin instead of this year’s” .
By 2025, Roccato advises increasing your 401(k) contribution, signing up for a health savings account, reviewing insurance policies, paying off credit card debt and investing in yourself.
“People ask me all the time, ‘What’s the best investment out there?’ Forget Bitcoin, be yourself, add some skills, improve your resume next year.”
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Total holiday spending this year is expected to be at least $24 billion more than last year, according to the National Retail Federation.
Agustin Hays of FOX Business contributed to this report.
