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86% of millennials overspend on vacation – 8 ways to avoid their mistakes

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If you’re between the ages of 23 and 38, chances are you’re spending too much during the holiday season.

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According to new survey results from the Pay It Plan It division of American Express, not only did 86% of people this age say yes to overspending, but of this group, 21% said they had exceeded their desired threshold. of $500 or more, CNBC reported. .

But it was the type of gift they bought that really drove the dollars up — 69% said electronics were the big item that pushed their wallets, while 57% mentioned children’s toys and 38% mentioned jewelry.

In anticipation of this holiday season, most survey respondents plan to spend at least $100 per gift recipient, which might not seem like a lot until you consider that their gift list can get quite extensive with parents, siblings, friends, grandparents and kids to consider, per CNBC.

A report by Think With Google a few years ago found that millennials were 28% more likely to buy year over year. And that doesn’t mean they like to buy each other gifts during the holidays, too. Inc magazine found that 37% of respondents give themselves gifts to relieve stress.

They aren’t just gifts either. Last Christmas, Lending Tree reported that a survey of 2,000 people found that 30% were planning to throw holiday parties, with millennials citing the largest expense by far – an average of $981. . Additionally, the report notes, “To help cover these expenses, 55% of millennials say they may need to take on debt to do so.

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But there are several ways to cut costs this season to avoid such pitfalls, experts advise, and these are great ideas for anyone, at any age:

  1. Set a budget and stick to it. Write down only what you plan to buy and stick to it. Have a total dollar amount in mind and using your smart phone will help you stay focused on your task.

  2. Find all the offers. The holidays are extremely competitive for retailers – look for in-app deals like those from Target Circle or Walmart+ and check your credit cards to see if they offer cash back programs.

  3. Leverage credit card pools. Do you have any pending rewards from the last 12 months of purchases? Start exchanging them for gifts. Or open a new credit card to enjoy the benefits of a new account – just make sure you can pay off balances at the end of the season to avoid further debt.

  4. Buy “old” electronics. If you can’t afford the iPhone 14, the 13 model is just as great and will cost you several hundred less. Just because it isn’t brand new doesn’t mean it isn’t still very valuable.

  5. Don’t get carried away with the shopping “vacation”. Black Friday and Cyber ​​Monday can be a big trap to overbuy and go over budget at the same time. Don’t forget that there are still four weeks left in the season.

  6. Always consider shipping costs. Many people now prefer to shop online. When doing so, consider what shipping costs might be within your budget (or go with e-commerce sites that offer free shipping).

  7. Invest in discounted gift cards and use them to pay for your shopping list. Sites like Raise and Gift Card Granny offer gift cards for dozens of retailers at 10% off the regular price. Buy these and use them as funds for your holiday shopping – it could be a real savings.

  8. Homemade gifts are great too. It really is the thought that counts, especially when it comes to parents and grandparents who love nothing more than homemade gifts like those that evoke fond family memories.

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This article originally appeared on GOBankingRates.com: 86% of millennials spend too much on vacation – 8 ways to avoid their mistakes