How to Avoid Overspending: Holiday Budget Advice from Dr. Chatterjee

In WalletHub’s 2025 Holiday Budgets by City report, Dr. Patrali Chatterjee, Chair and Professor of the Marketing department, offered expert guidance to help consumers navigate the financial pressures of the holiday season. Drawing on her research in consumer behavior and digital marketing, Dr. Chatterjee emphasized the importance of intentional planning, encouraging individuals to set a clear seasonal spending cap and create category-specific sub-budgets for gifts, food, travel, and charitable giving. She also highlighted the often-overlooked “hidden costs” of the holidays, such as work-related events, shipping fees, taxes, and small but meaningful obligations to caregivers or teachers.

Dr. Chatterjee warned against impulse purchases influenced by digital promotions, recommending a 24-hour “cooling-off period” before buying items prompted by social media ads. She noted that economic uncertainty, shaped by tariffs, layoffs, and fiscal conditions, has increased consumers’ value-conscious behavior, making “quality over quantity” a prevailing mindset this season. She cautioned families to approach credit cards and “Buy Now, Pay Later” plans with care, reminding them that future payments represent real reductions to their current budgets.