More than 40% of Americans feel pressure to overspend on holiday gifts

Middle-income earners may feel pressured to keep up with the Joneses

How to save money over the holidays

(RNN) – If you’re feeling the pressure to splurge over the holidays, you’re not alone.

More than two in five Americans feel pushed to overspend on gifts, according to a Bankrate holiday gift giving survey.

“Despite budget constraints, there are some lines most people refuse to cross to save money,” the survey says. “Buying used and re-gifting are generally considered to be on the naughty list."

45 percent of Americans feel pushed to overspend on holiday gifts.
45 percent of Americans feel pushed to overspend on holiday gifts. (Source: Bankrate)

Parents and middle-income families are more likely to feel the heat to overspend.

“I always tell parents to step back and recognize that we all have too much stuff,” said Nora Yousif with RBC Wealth Management. “Let’s face it, kids are going to outgrow their clothes and out-mature their toys. So, if you’re going to spend, spend wisely and be savvy about it.”

The people in the middle are really squeezed for funds, according to Bankrate Economic analyst Mark Hamrick.

“In some ways, they have the worst of both worlds because there is at least the perceived pressure to spend and also some capability,” Hamrick said. “What’s universally true for all income levels is the need for everybody to have a plan and stick to it.”

Hamrick recommends creating a budget and sticking with it to make the holidays more manageable.

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