5 Costly Mistakes the Average Consumer Makes When Christmas Shopping

We’re on the brink of the holiday season, which means plenty of us are getting serious about shopping. According to research from PwC, though 59% of consumers said that inflation will likely influence their holiday spending this year, overall holiday spending is expected to increase by 7% to an average of $1,638 per shopper.

When shopping during any time of the year, you need to be vigilant, self-aware and well informed about retailers offering competitive deals. Unfortunately, it’s all too easy to make mistakes that will hurt you financially.

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GOBankingRates spoke with financial experts to learn of five of the most common, costly mistakes average consumers make when shopping for Christmas.

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Not Making a List — and Not Checking It Twice

You probably already know by now how important it is to financially plan for big events. Well, holiday shopping is, for many, a big event. Get organized and prepared by making a list detailing all that you intend to buy and for whom.

“List out expenses that you know you need to cover for the holidays,” said Michelle Smoley, director of personal and college finance at Bright Horizons College Coach . “For example, if you are a gift-giver, start a list of gift recipients. If you are traveling, make a list of projected travel expenses such as airfare and car rental. If you are hosting, confirm your menu and begin that grocery list.”

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Not Turning a List Into an Expense Estimate

Once you have a list, get to work cracking the numbers to ensure you can cover all the expenses on your list.

“For each item on your list, estimate the expense and then add them up to determine your grand total of estimated holiday expenses,” Smoley said.

Even if you’ve saved throughout the year and think you’ll have the savings to cover the costs, you still need to do the math. “Additionally, if you have already saved for the holidays throughout the year, deduct what you have saved to determine how much you have left to cover in the next couple of months,” Smoley continued. “For instance, if your total is $1,000 and you have already saved $500, then you will need to budget for the remaining $500 in the coming weeks or months. Conversely, if you did not start saving, take your total of estimated expenses and divide by three months for October, November and December.”

Spending On Gifts Out of a Sense of Obligation

Erika Rasure, Ph.D., chief financial wellness advisor and client financial therapist at Beyond Finance , pointed out that there’s a substantial difference between buying gifts because you want to (and can afford to) and buying gifts because you feel you must — and maybe can’t really afford to.

“If you can’t afford it and can’t find joy in gift giving because it feels like a chore, you may want to reconsider how you approach your giving this year,” Rasure said. “For those of you with children, it’s an obligation that’s hard to get out of for many obvious reasons, but the most difficult one being the joy you know your kids get from holiday gifts.”

For those gifts you find joy in giving, look for ways to save. “Because the joy exists, it might be a great idea not to break up with Black Friday altogether, but rather focus on getting the deals on the gifts that your kids will love,” Rasure said.

Neglecting To Check Card-Linked Offers Ahead of Buying Something

A common mistake that Kelli Hobbs, an expert in loyalty and rewards programs at Valuedynamx , sees average consumers make is neglecting to check card-linked offers before making a purchase.

“These offers are tied to your credit or debit card and can provide cash back or discounts when shopping at participating retailers, both in-store and online,” Hobbs said. “Many consumers miss out on these easy savings simply because they forget to check these offers before making purchases.”

Hobbs added that missing out on card-linked offers can seriously add up.

“You could be losing 5% to 10% in cash back or discounts, and when you’re buying a lot of gifts, that can quickly add up to hundreds of dollars,” Hobbs said. “What’s worse is that many of these offers can be stacked with other coupons and store discounts, so you’re missing out on double savings if you skip this step.”

To avoid this mistake, check your credit or debit card’s app or online portal for any available offers before making a holiday purchase.

Racking Up Credit Card Debt

Thoughtlessly amassing credit card debt to float your holiday purchases could really hurt your finances and possibly your credit score for a long while.

“One mistake I’ve seen people make during the holidays is racking up credit card debt without thinking about how it will impact their credit score,” said Randall Yates, co-founder of VA Loan Network . “I had a client who went all out one Christmas, spending thousands on gifts and travel, all on credit cards. By January, their credit utilization skyrocketed, dropping their credit score by over 50 points.”

To avoid falling into debt during this season of giving, set a spending limit and be mindful of your credit utilization, aiming to keep it below 30% of your total credit limit. Yates also recommended buying in cash or via a debit card to block off the possibility of accruing credit card debt.

This article originally appeared on GOBankingRates.com : 5 Costly Mistakes the Average Consumer Makes When Christmas Shopping