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Spending money for the holidays can get out of hand if you don't have a budget before you start shopping.
If you're looking to stick to a budget this year but don't know where to start, WalletHub released a report on the maximum holiday budget for residents in 570 U.S. cities.
"This year, holiday shopping may be more stressful than usual considering the fact that the COVID-19 pandemic has left a lasting impact on many people's finances. However, holiday sales still grew 8.3% last year despite the pandemic, so it's likely we will see even better growth this year now that conditions have been improving."
On top of the financial hardships from the pandemic, credit card debt is also on the rise.
"In addition to the COVID-19 pandemic, holiday shoppers also face difficulties from credit card debt. In 2021, the average household credit card debt is $7,854, according to WalletHub's data. At the beginning of 2021, there was over $900 billion in total credit card debt, and WalletHub projects a net increase of around $100 billion this year."
To find the budgets for residents of 570 U.S. cities, WalletHub looked at five key components when searching through data:
- Age
- Debt-to-Income Ratio
- Income
- Monthly Income-to-Monthly Expenses Ratio
- Savings-to-Monthly Expenses Ratio
So, what did the report say California residents in various cities should budget for their holiday spending?
- No. 36: San Francisco - $1,981
- No. 123: South San Francisco - $1,240
- No. 230: San Diego - $971
- No. 220: Chula Vista - $987
- No. 304: Riverside - $858
- No. 376: Sacramento - $779
- No. 498: Fresno - $649
Click here to read the full study.