Financial Uncertainty: Managing Holiday Budgets Amid Market Volatility

Financial uncertainty is affecting how families manage their holiday budgets. According to Bank of America internal data, nearly a quarter of all households are estimated to live paycheck to paycheck by 2025, complicating holiday spending.

To mitigate overspending, families are encouraged to create detailed budgets that integrate holiday expenses into their monthly finances. The 50/30/20 rule, which allocates 50 percent to needs, 30 percent to wants, and 20 percent to savings, can be modified to suit holiday spending.

More than half of consumers, 52 percent, are opting to shop earlier to ease financial strain and avoid shipping delays. Consumers are also considering budget-friendly alternatives, with 51 percent open to gifting dupes instead of luxury items.

Discount and wholesale retailers are expected to be popular this season, with 87 percent of shoppers planning to utilize these stores for affordable gifts and essentials. By planning shopping trips strategically and using rewards cards to maximize benefits, consumers can enhance their holiday experience while keeping costs manageable.

Setting spending boundaries with loved ones can also minimize holiday stress and focus on meaningful connections rather than consumption. With thoughtful planning and creativity, Maryland families can enjoy the holiday season without overspending, as emphasized by Janet Currie, president of Bank of America Greater Maryland.

The opinions expressed are those of the writer and not necessarily those of the AFRO.