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Festive finances: Banishing financial fears

FILE - People carry shopping bags, Saturday, Dec. 10, 2022, at Downtown Crossing in Boston. The National Retail Federation, the nations largest retail trade group, expects holiday sales growth will ease to a range of 3% to 4%, compared with 5.4% growth a year ago. The forecast, released Thursday, Nov. 2, 2023, comes as shoppers keep spending, powered by sturdy hiring, low unemployment and healthy household finances. (AP Photo/Michael Dwyer, File) (Michael Dwyer, Copyright 2022 The Associated Press. All rights reserved)

ORLANDO, Fla. – Your grandma, your uncle, your dad, mother, brother sister and friends, and don’t forget your boss, coworkers and neighbors! All this gift-giving can add up!

Even though there are six fewer shopping days between Thanksgiving and Christmas this year, experts predict consumers will spend more this year than last year on gifts and also rack up more debt.

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Surveys show about two-thirds of Americans report feeling stressed about money. And with the holidays upon us, this worry is only amplified.

Studies show stressing over money can increase your risk of depression, insomnia, heart disease, high blood pressure, and other chronic illnesses.

But there are ways to help lessen holiday shopping anxiety.

First: create a realistic spending budget and stick to it! Include gift spending, and items like travel, parties, shipping costs, charitable donations, home decorations, cards, and gift-wrapping materials.

Make purchases one at a time. Research shows making too many financial decisions at once can drain your willpower.

You also might want to take advantage of unused gift cards that you could buy your holiday presents with. About half of Americans have them lying around, and the average value is close to $200!

Lastly, if you’re feeling really overwhelmed, ask for help in making a plan. A financial planner can help you get control of spending and make sure you head into 2025 without financial fear.

Some people also have success with using all cash for holiday spending. This limits temptation and forces you to only spend the amount you set aside.