Holiday shopping can be expensive — and this year, nearly half of Americans said they expect to borrow money to cover purchases they can’t immediately pay for, according to the International Council of Shopping Centers.
This comes as American household debt nears its highest point on record, according to the New York Federal Reserve Bank. Americans hold $5.195 trillion — or $38,777 per person across 133.97 million households — on average.
There’s another way to approach holiday shopping that doesn’t involve accruing debt. If you start saving incrementally toward your holiday shopping budget now by creating a sinking fund, you may not need high-interest debt to buy your loved ones’ gifts.
CNBC Select outlines what a sinking fund…