2026 Holiday Spending: Americans Expect to Spend $1,654 – How to Avoid a January Money Hangover

The holiday season is approaching, and many American households are preparing for gifts, travel, celebrations and family gatherings. But festive spending can quickly become a financial headache when purchases are made without a clear plan.

A 2026 consumer survey estimates that shoppers plan to spend an average of $1,654 this holiday season, a 4% increase from the previous year. With prices still a concern for many households, planning ahead could make the difference between an enjoyable holiday and an expensive January.

Where Is the Holiday Money Going?

The survey estimates that average spending on retail goods will reach $988, while holiday activities and experiences will account for approximately $666.

Experiences are becoming an important part of holiday gifting. Half of surveyed shoppers plan to give an experience, such as a meal or activity, rather than relying entirely on traditional presents.

Online shopping is also expected to account for a significant share of retail budgets. This makes it easier to compare prices, but it can also encourage unplanned purchases when shoppers encounter repeated promotions.

Why a Holiday Budget Matters

The problem with holiday spending is not always the cost of one large purchase. Several small expenses can accumulate: decorations, delivery charges, meals, travel, gift exchanges and last-minute shopping.

Using credit cards for every purchase can make the total difficult to track. If the balance is not paid in full, interest charges can turn a festive shopping season into a longer-term financial burden.

Five Steps to Build a Holiday Spending Plan

1. Decide Your Total Spending Limit

Start with the amount you can comfortably afford after essential bills, savings contributions and debt payments. Do not treat the survey's $1,654 average as a spending target. Your budget should reflect your own income and financial situation.

2. Divide the Budget Into Categories

Create separate limits for gifts, travel, food, decorations and entertainment. This helps prevent one category from consuming money intended for another.

3. Make a Gift List Before Shopping

Write down the people you intend to buy gifts for and set a spending limit for each person. Consider thoughtful, useful gifts rather than choosing something simply because it is discounted.

4. Compare the Final Price

Check shipping fees, taxes, return conditions and delivery dates before completing an online purchase. A product advertised at a lower price may not be the cheapest option after additional charges.

5. Set a Credit Card Repayment Plan

If you use a credit card, know how the purchase will be repaid. Avoid carrying a balance simply to make the holiday budget appear larger than it really is. Pay attention to interest rates and promotional financing conditions.

Don't Let Discounts Decide Your Budget

Promotional events can create a sense of urgency. A limited-time offer may look attractive, but buying something unnecessary is still spending money.

One useful approach is to wait 24 hours before making non-essential purchases. If the item still fits your budget and your needs the following day, you can make a more informed decision.

Enjoy the Holidays Without Financial Stress

A memorable holiday does not require the biggest gift or the most expensive celebration. Spending time with family, sharing meals and creating meaningful experiences can matter more than the total amount spent.

The best holiday budget is one that allows you to enjoy the season while protecting your financial goals for the new year.

Have you started planning your holiday spending for 2026? What is your best tip for avoiding unnecessary expenses? Share it in the comments.

U.S. Mortgage Rates Fall to 7.18%: Is It a Better Time to Buy a Home?

There is some encouraging news for American homebuyers. The average rate on a 30-year fixed mortgage has declined for a third consecutive week, reaching 7.18% in the latest weekly update.

The 15-year fixed mortgage rate also moved lower, reaching 6.57%. Although the decline offers some relief, borrowing costs remain considerably higher than they were a year ago.

What Has Changed?

The average 30-year mortgage rate fell from 7.24% to 7.18%. The 15-year rate declined from 6.60% to 6.57%.

Mortgage rates have eased as the 10-year Treasury yield moved lower from its earlier peak. However, broader economic uncertainty, inflation concerns and financial market movements continue to influence borrowing costs.

What Does This Mean for Monthly Payments?

A small reduction in mortgage rates can make a difference over a long repayment period. However, the impact depends on the loan amount, down payment, credit profile, property taxes and insurance.

For example, someone considering a $400,000 mortgage should compare the monthly principal and interest payment at the latest rate with the payment available under other lender quotes.

Do not forget that the advertised mortgage rate is not necessarily the rate every applicant will receive.

Should You Buy a Home Now?

A lower mortgage rate can improve affordability, but it should not be the only reason to purchase a property.

• Check whether the monthly payment fits comfortably within your income.
• Maintain an emergency fund after making the down payment.
• Compare offers from multiple lenders.
• Include property taxes, insurance and maintenance costs.
• Consider how long you expect to remain in the home.

Is Refinancing Worth Considering?

Existing homeowners may also be interested in refinancing. However, refinancing involves closing costs and other expenses. Calculate the potential savings and the time required to recover those costs before making a decision.

The Bottom Line

The decline to 7.18% is a welcome development for prospective homebuyers, but it does not mean housing has suddenly become affordable for everyone.

Compare actual lender offers, understand the full cost of ownership and avoid stretching your budget simply because rates have moved lower.

A home purchase should fit your long-term financial plan, not just the latest weekly mortgage headline.

2027 Health Insurance Open Enrollment: 8 Things Americans Should Compare

Choosing health insurance is one of the most important financial decisions many American households make each year. The 2027 HealthCare.gov Open Enrollment Period began on November 1, 2026, giving eligible consumers an opportunity to review coverage and select a plan for the coming year.

It can be tempting to choose the plan with the lowest monthly premium. However, the cheapest premium does not necessarily mean the lowest overall healthcare cost.

1. Compare Monthly Premiums

Your premium is the amount you pay to maintain insurance coverage, regardless of whether you visit a doctor during that month.

Compare the full monthly cost after any eligible financial assistance. Do not assume that last year's premium or subsidy will remain unchanged.

2. Understand the Deductible

The deductible is the amount you generally pay for covered services before your plan begins sharing certain costs. A low-premium plan may have a much higher deductible.

Think about how frequently your household uses medical services and whether you could comfortably manage the deductible if an unexpected expense occurs.

3. Check the Out-of-Pocket Maximum

The out-of-pocket maximum limits how much you pay for covered in-network essential health benefits during the plan year, subject to the plan's rules.

This figure can be especially important for families managing ongoing medical expenses. Remember that premiums and certain non-covered costs generally do not count toward this limit.

4. Confirm Your Doctors and Hospitals

Provider networks can change from one year to another. Check whether your preferred doctors, hospitals and specialists are included in the new plan.

If you have an established healthcare relationship, losing access to a familiar provider may be more disruptive than a small difference in monthly premiums.

5. Review Prescription Drug Coverage

Look at the plan's drug formulary and check how your regular prescriptions are covered. Pay attention to generic alternatives, tiers, copayments and any prior authorisation requirements.

6. Check Whether Your Preferred Services Are Covered

Compare coverage for specialist visits, mental health services, preventive care, diagnostic tests and other services your household may need.

Read the plan documents rather than relying only on a short marketing summary.

7. Estimate Your Total Annual Cost

Do not compare plans using premiums alone. A useful estimate includes annual premiums, likely copayments, prescription expenses and possible deductible payments.

Consider both a routine-use scenario and an unexpected medical-event scenario. This gives you a better understanding of the financial risk associated with each option.

8. Check the Enrollment Deadline

For HealthCare.gov coverage, the 2027 Open Enrollment Period runs from November 1, 2026, through January 15, 2027. Enrolling by December 15 generally allows coverage to begin on January 1, 2027. Later enrollment during the open period generally starts coverage on February 1.

Make a Decision Based on the Whole Picture

Health insurance should protect both your health and your household finances. A plan with a slightly higher premium may provide better value if it offers the doctors, medicines and coverage your family needs.

Review your household's expected healthcare requirements, compare official plan details and check whether you qualify for financial assistance before making a decision.

Important: Enrollment rules and plan availability can vary by state and circumstances. Verify your dates and eligibility through the official Marketplace before submitting an application.