University of San Diego finance professor Don Rocato tells “Fox & Friends First” about the cost of Christmas and how to spend your money wisely in the new year.
Swipe, tap or insert the chip.
While these credit card actions may seem small, they can spell big trouble, especially for the nearly one-third of Americans who are still struggling to pay off last year's charges. Vacation balance
NerdWallet's Holiday Spending Report As of September, it found that 28 percent of 1,700 shoppers surveyed had yet to pay off their debt by the 2023 holiday season. Add this year's seasonal expenses to the mix, and the “stress” more than half of survey participants reported only increases when they think about holiday spending.
Dan Rocato, professor of finance at the Knauss School of Business at the University of San Diego, blames inflation for long-term debt.
In-person shopping is making a comeback amid a record-breaking holiday season
Nearly 30 percent of holiday shoppers surveyed said they were still paying for last year's season. (iStock)
“Toys and other Christmas gifts are more expensive than they were three and a half years ago, so that's the number one issue Americans are dealing with,” he told Fox News on Monday.
Financial guru Dave Ramsey shares the same advice with “Fox and FriendsLast Wednesday, she advised viewers to make a list of people they plan to shop for and set a specific amount to spend on each.
“If you do that, and put a name next to it, and then add up those dollar amounts, you have something called a Christmas budget. If you stick to it, you won't overspend.” he said.
There are ways to spend money more wisely and head into 2025 with a more secure financial outlook, Roccato suggested. He believes it will come down to a few smart money moves at the end of the year.
Personal finance expert Dave Ramsey joined Fox & Friends to discuss the Fed's possible rate cut and how to prevent Americans from 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 go into the new year not with a credit card hangover, but with a lot of optimism. And a plan of What we can do better next year.”
He continued, “There's still time, so if you haven't done so this year, you can contribute to an IRA. If you have a flexible spending account at work, use it. Now's the time to make that dental appointment. If you can get it before the end of the year, use that money for those last-minute medical appointments.
“Maybe you're a contractor, or you get a bonus or something. If you can roll that income into next year, go ahead and do it. Put it in next year's tax bin instead of this year.”
For 2025, Roccato recommends increasing your 401(k) contributions, enrolling in a health savings account, reviewing insurance policies, paying off credit card debt and investing in yourself.
People always ask me, what is the best investment? Forget Bitcoin, it's you, add some skills, boost your resume next year.
Get FOX Business on the Move by clicking here
Total holiday spending this year is expected to be at least $24 billion higher than last year, according to the National Retail Federation.
Augustine Hayes of FOX Business contributed to this report.