Skip to main content
Advertiser Disclosure
We do receive compensation from some partners whose offers appear on this page. We have not reviewed all available products or offers. Compensation may impact the order in which offers appear on page, but our editorial opinions and ratings are not influenced by compensation.

The Ascent Logo The Ascent Logo - Blue circle with an A in it and the ascent a motley fool company to the right of that

  • Credit Cards
  • Banking
  • Brokerages
  • Loans
  • Mortgages
  • Knowledge
  • Latest Picks
  • Search Icon Click here to search

Credit Cards

Top Picks
  • Best of January 2021
  • Cash Back
  • Balance Transfer
  • Travel
  • 0% APR
  • Rewards
  • Bad Credit
Knowledge
  • Beginners Guide to Credit Cards
  • How to Rebuild Your Credit
  • Maximize Your Credit Card Rewards
  • Learn More About Credit Cards
Credit Card Tools
  • Compare Cards
Looking for a new credit card?

Explore the best credit cards in every category as of January 2021.

Get started!

Banking

Top Picks
  • Best Savings Accounts
  • Best Bank Accounts
  • Best Money Market Accounts
  • Best CDs
  • Best Checking Account Bonuses
Knowledge
  • Beginners Guide to Banking
  • Everything You Need to Know About Savings
  • Money Market Accounts Made Easy
  • Learn More About Banking
Looking for a place to park your cash?

Check out our top picks of the best online savings accounts for January 2021.

Get Started!

Brokerages

Top Picks
  • Best Brokers of January 2021
  • Best Online Brokers for Beginners
  • Best Options Brokers
  • Best IRA Accounts
  • Best Roth IRA Accounts
  • Best Robo Advisors
Knowledge
  • How to Open a Brokerage Account
  • Beginner's Guide to Brokerages
  • Learn More About Brokerage
Just getting started?

Explore our picks of the best brokerage accounts for beginners for January 2021.

Get Started!

Loans

Top Picks
  • Best Loans of January 2021
  • Best Personal Loans for Bad Credit
  • Best Loans for Debt Consolidation
  • Best Low-Interest Personal Loans
  • Best Personal Loans for Good Credit
  • Best Personal Loans for Fair Credit
Knowledge
  • Personal Loans Made Easy
  • Debt Consolidation Guide
  • How to Pay Off Debt
  • Learn More About Loans
Thinking about taking out a loan?

Before you apply for a personal loan, here's what you need to know.

Get Started!

Mortgages

Top Picks
  • Best Mortgage Lenders of January 2021
  • Best Mortgage Lenders for Poor Credit
  • Best Refinance Lenders
  • Best VA Mortgage Lenders
Knowledge
  • First Time Homebuyers Guide
  • Home Loans Made Easy
  • The Complete Guide to Refinancing
  • How to Get a Mortgage with Bad Credit
  • Learn More About Mortgages
Tools & Calculators
  • Mortgage Calculator
Compare Rates
  • Today's Mortgage Rates
  • Refinance Rates
  • 15-Year Mortgage Rates
  • 20-Year Mortgage Rates
  • 30-Year Mortgage Rates
  • Jumbo Mortgage Rates
  • VA Loan Rates
  • 5/1 ARM Rates
  • 7/1 ARM Rates
  • FHA Mortgage Rates

Knowledge

Knowledge Section
  • All Articles
  • Credit Card Articles
  • Banking Articles
  • Brokerage Articles
  • Personal Loan Articles
  • Mortgage Articles
  • Personal Finance Articles
Recent Articles
  • Current Mortgage Refinance Rates -- January 18, 2021: 30- and 15-Year Loans Creep Upward

    Mortgages

    Current Mortgage Refinance Rates -- January 18, 2021: 30- and 15-Year Loans Creep Upward
  • 3 Options for Financing Home Improvements in 2021

    Mortgages

    3 Options for Financing Home Improvements in 2021
  • Today's Mortgage Rates -- January 18, 2021: Rates Continue Their Upward Trend

    Mortgages

    Today's Mortgage Rates -- January 18, 2021: Rates Continue Their Upward Trend
  • 4 Questions to Ask Before Cosigning a Loan

    Loans

    4 Questions to Ask Before Cosigning a Loan
  • The Ascent
  • Knowledge
  • Credit Cards

Most Americans Don't Have a Holiday Budget -- and That's a Problem

by Christy Bieber | Dec. 7, 2019

The Ascent is reader-supported: we may earn a commission from offers on this page. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation.

Going without a spending plan for the holidays may be the norm, but it's still a bad idea. 

During the holiday season there's a lot to spend money on. From plane tickets to holiday parties to gifts, the lists of things to purchase can seem endless. 

Unfortunately, the majority of Americans are going into this season of heavy spending completely unprepared. That's because most people have no budget or pre-set spending plan. And without this plan, expenditures could quickly get out of control and money won't necessarily be spent in a manner that brings the most joy. 

A woman standing in her decorated living room holding an armful of gifts.

Image source: Getty Images

How many Americans are going into the holidays without a budget?

According to a recent YouGov survey, just 43% of U.S. adults have a holiday budget, compared with 49% who do not and 8% who don't know if they have one. 

This means that more than half of all adults have no idea where they want their money to go or how much they have available to spend during the festive season. Millennials were most likely have a holiday budget, with 51% of people in this age group indicating they'd created a spending limit, compared with 42% of Gen Zers, 43% of Gen Xers, and 37% of boomers. Those in the silent generation were the least likely to have a budget, with only 32% saying they had a spending plan in place. 

Why is it a problem to go into the holiday season without a budget?

Not having a budget can become a big issue when there's endless pressure to spend. Commercials start touting the need to shop for holiday deals well before Thanksgiving and most of us are inundated with messaging that says the only way to enjoy the holidays is with a mountain of gifts underneath a well-decorated tree. 

The problem is, the consumerism surrounding the holiday season often leads to a ton of unnecessary spending. In fact, the National Retail Foundation found consumers plan to spend 4% more this holiday season than last year, with average projected spending around $1,047.83. This is a lot of money, especially if you don't have any cash saved and you plan to go into holiday debt. 

Without a budget, it's far too easy to reach for the credit cards and charge everything you or your loved ones want, even if doing so means you rack up bills it could take years to pay off. It may also mean you overspend on some things -- like gifts you give out of obligation -- and end up with too little money for other things you'd actually enjoy. 

Avoid holiday debt or misspent funds with a detailed budget

You don't have to just accept unfettered holiday spending that leaves you struggling to pay the bills. Instead, create a holiday budget. Be sure your budget both limits your total spending and breaks that spending down into different categories by allocating specific funds for travel, entertainment, and gifts.

By going through the budgeting process, you can join the minority of Americans who have an actual plan for how to spend smartly. That way, you can make the holiday season joyful without piling up big bills you'll struggle to pay off.

Our credit card expert uses the card we reveal below, and it could earn you $1,148 (seriously)

As long as you pay them off each month, credit cards are a no-brainer for savvy Americans. They protect against fraud far better than debit cards, help raise your credit score, and can put hundreds (or thousands!) of dollars in rewards back in your pocket each year.

But with so many cards out there, you need to choose wisely. This top-rated card offers the ability to pay 0% interest on purchases into 2022, has some of the most generous cash back rewards we’ve ever seen (up to 5%!), and somehow still sports a $0 annual fee.

That’s why our expert – who has reviewed hundreds of cards – signed up for this one personally. Click here to get free access to our expert’s top pick.

About the Author

Christy Bieber
Christy Bieber icon-button-linkedin-2x

Christy Bieber is a personal finance and legal writer with more than a decade of experience. Her work has been featured on major outlets including MSN Money, CNBC, and USA Today.

Share This Page
Blue Facebook Icon Share this website with Facebook
Blue Twitter Icon Share this website with Twitter
Blue LinkedIn Icon Share this website with LinkedIn
Blue Mail Icon Share this website by email

The Ascent is reader-supported: we may earn a commission from offers on this page. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation.

Related Articles

Credit cards on a desk image for Best Credit Cards for 2021

Best Credit Cards for 2021

Interest spelled out on a calculator image for Compare Credit Cards Side by Side

Compare Credit Cards Side by Side

Man holding cash image for How Do Cash Back Credit Cards Work?

How Do Cash Back Credit Cards Work?

Cyber security and computer screen image for How to Protect Yourself from Credit Card Fraud

How to Protect Yourself from Credit Card Fraud

Featured Articles

Best Credit Cards for 2021

Compare Credit Cards Side by Side

How Do Cash Back Credit Cards Work?

How to Protect Yourself from Credit Card Fraud


We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.

The Ascent Logo

The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters.

btn_facebook-yellow btn_twitter-yellow btn_instagram-yellow

Copyright © 2018 - 2021 The Ascent. All rights reserved.

About The Ascent
About Us Contact Us Newsroom How We Make Money Editorial Integrity Ratings Methodology
Legal
Terms of Use Privacy Policy Accessibility Policy Terms and Conditions Copyright, Trademark and Patent Information
Learn
Credit Cards Banking Brokerage Loans Recent Articles

By submitting your email address, you consent to us sending you money tips along with products and services that we think might interest you. You can unsubscribe at any time. Please read our Privacy Statement and Terms & Conditions.

Back to The Motley Fool