By Ryan Velez
Holidays are supposed to be a time for fun, but all those gifts and parties come at a price, and Black Enterprise reports on data that men are taking the bulk of the financial hit this season.
Men are facing holiday expenses on average of $1,428, almost twice as much of the $786 women plan to payout, according to a study from Lincoln Financial Group. The purpose of the study by the Radnor, Pennsylvania-based financial services company was to determine how Americans think about their personal financial situations, their financial priorities and plans for the year. A total of 2,500 Americans ages 18 and older, including 394 African Americans, were surveyed. Online interviewing occurred over a 12-day period in November.
Interestingly, despite having less money overall, millennials are putting more money out over the season. They spend on average $1,400 on the holidays, about $500 more than baby boomers and Gen Xers. Millennials are often viewed as being more conservative than their two older generations. On average, Americans will spend more than $1,000.
There are also some interesting findings about the African-American population and their habits.
• The average holiday spending among African Americans who set a budget is $762. Some 25% plan to spend between $101 to $500 this holiday season, while 50% reported they did not know. Some 19% of African Americans start saving for the holiday season at the beginning of the year, while 17% start in the fall. Fifty-one percent said they don’t save for the holiday season.
• A strong 79% of African Americans reported they do not have trouble staying within their budget during the holiday season, while 21% reported that they have trouble sticking to a budget at that time. Asked what their biggest expense is during the holidays, 57% of African Americans cited gifts while 18% reported cooking at home.
“It’s tempting to splurge at this time of year, but it’s important to ensure that holiday spending doesn’t derail your finances,” said Jamie Ohl, president, Retirement Plan Services, Lincoln Financial Group. “As with all financial matters, planning is a good way to stay on track, even when you’re tempted by sales and impulse buys.” Nearly a third of all Americans often start the new year with holiday debt, and 31% of those who do set a budget for the holidays have trouble sticking to it.
“Gifts you give others shouldn’t be at the expense of your own financial future,” said Ohl. “Planning ahead and creating a holiday budget can help ensure that you’re able to spend this holiday season without sacrificing your other savings or even more importantly, your retirement savings.”