INDIANAPOLIS — The holidays are often a time when we spend big bucks.
If you are not careful, that spending can stick with you well into the New Year.
A survey by NerdWallet found that more than one in four Americans (28%) who used credit cards to pay for holiday gifts last year still have balances.
That is why it is important to start thinking about boundaries.
Experts say a good budgeting tool is the 50/30/20 rule.
Fifty percent of your income should go toward needs, 30% toward wants and 20% debt or savings.
Gift-giving and holiday flights would fall under the 30% portion.
This season, NerdWallet found nearly half of us plan to spend money on flights and hotel stays, spending, on average, $2,330.
As for gifts, people are expected to spend on average $925.
If these dollar amounts sound high, Sara Rathner, with NerdWallet, said to come up with plan and talk about it.
"It can definitely be embarrassing, but remember, these are people who care about you and care about your wellbeing," Rathner said. "Start that conversation as early as possible, so everybody can make plans accordingly, especially if your family is rethinking gift-giving."
The goal: avoid emotional or impulse purchases.
"It can feel like those holiday costs are more important, and they certainly are more important emotionally, but if you really think about it, it is so important to also be able to afford all of your other bills and try not to push yourself in financial jeopardy just to buy gifts," Rathner said.
If your family is large, suggest Secret Santa instead of buying for everyone. Each person select's a name and buys a gift for that person under a certain dollar amount.