Holiday Budget Warning: These Overlooked Costs Can Be More Expensive Than Gifts
Gifts may get most of the attention during the holiday season, but they aren't the only expense putting pressure on Americans' budgets.
A recent Oobit survey found that 63% of Americans said gifts cause them the most financial stress during the holiday season. However, that's only part of the story — the real budget killer could be elsewhere.
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Here's a look at the hidden holiday expenses that could be draining your budget.
Holiday Travel Costs Are a Major Budget Stressor
After gifts, the cost of holiday travel is the No. 2 financial stressor of the season (23%). Gen Z were the most likely to be worried about holiday travel expenses (30%), likely because they have to travel to see family versus older generations who may be hosting.
Hosting, Food and Decorations Can Inflate Holiday Spending
Americans estimate that 40% of their holiday budget goes towards hosting and food, 29% goes towards decorations, and 24% goes to parties and events.
Whether you're hosting a holiday gathering or attending one, seasonal entertaining costs can quickly exceed expectations. Hosts face higher grocery bills, while guests often feel obligated to bring food, drinks or hostess gifts.
Holiday decorations can also become an unexpected budget drain, especially for shoppers who wait until after early-season sales have passed.
Holiday Tipping Expectations Continue To Grow
The holiday season often means being expected to give extra tips to people who provide you with everyday services. However, many Americans are burnt out by holiday tipping expectations, with 50% saying that these expectations have become excessive.
As a result, 24% of Americans are reducing tips this year. Tips for delivery drivers are the first on the chopping block (7% are cutting these tips), while childcare provider tips are the most secure (only 2% plan to cut these).
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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