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• The average American expects to spend over $2,000 on holiday costs this season, one survey found.
• Some respondents predicted they would be paying off the debts they accrue into May next year.
• Personal finance guru Dave Ramsey advised saving before the holidays and setting a strict budget.

The most wonderful time of the year often comes with a hefty price tag — and many people expect to be paying for it into next summer.

People's debt balloons "because they don't plan for Christmas, like it sneaks up on them, like they move it or something," personal finance guru Dave Ramsey told "Fox & Friends" last week.

Ramsey's comments were in response to a survey showing that the average American will spend over $2,000 on holiday-related expenses this season, including travel, gifts, food, and clothes.

The survey of 2,000 people was conducted in early November by Talker Research and commissioned by Achieve. A fifth of respondents said they likely wouldn't recover financially until May 2025 or later.

The personal finance guru and host of "The Ramsey Show" described the $2,000 figure as "mindblowing," adding that it was a large sum to spend "all in the name of happiness comes from stuff — and it doesn't."

People can stay out of money trouble by socking away funds each month in preparation for the winter splurge, Ramsey said. They can also avoid overspending by drawing up a budget for gifts and other costs and sticking to it, he added.

"The problem with Christmas is not that we enjoy buying gifts for someone else — that's a wonderful thing," the radio personality said.

"The problem is we impulse our butts off, and we double up what we spend," he continued, pointing the finger at retailers who are "great at putting stuff in front of us that we hadn't planned to buy."

The typical US adult expects to spend $1,012 on gifts alone this holiday season, up from an estimated $975 last year, according to a Gallup survey of at least 1,000 people conducted in November.

Pinched by prices

Household budgets could be squeezed this holiday season. Inflation surged to a 40-year high of over 9% in the summer of 2022 as the cost of food, fuel, housing, and other essentials jumped, and remained above the Federal Reserve's target rate of 2% in November.

The central bank rushed to curb price growth by hiking interest rates from nearly zero to north of 5% within 18 months, sending people's monthly payments for their credit cards, car loans, and other debts skyward. Fed officials have cut rates to roughly 4% since September, but recently indicated they only expect to make two further cuts next year.

The upshot is Americans are likely to face a combination of elevated inflation and steeper rates for a while yet, setting the stage for a costly Christmas.

• Billionaire investor Ray Dalio wants people to give charity gift cards instead of material gifts.
• Recipients can decide which charity they want the money to go to.
• An expert in billionaire philanthropy said it could be good for wealthy people who donate to charity anyway.

Wall Street billionaire Ray Dalio is asking you to consider ditching buying gifts and instead give charity cards.

His "#RedefineGifting" campaign encourages his followers to give charity gift cards to their loved ones and request them in return.

Since 2020, Dalio, who founded Bridgewater Associates, has partnered with the nonprofit TisBest to give away 90,000 charity gift cards worth $5 million. The purchaser decides the amount, and the recipient chooses one of the 1.8 million US-registered charities on Tisbest's platform to donate the money.

"The shopping season has begun — a month-long compulsion to buy something, for everyone. We're pressed. We're stressed. And we waste time and money on gifts that might have little meaning," Dalio posted on X.

"Consider giving people donations to their favorite charities. And request that they give a donation to your favorite charity," he added.

A November Gallup poll found that US shoppers plan to spend an average of more than $1,000 on gifts this year for Christmas and other holidays.

Dalio has said in previous posts that he's given charity gift cards to his friends and colleagues for more than 10 years and has enjoyed learning about their favorite charities.

Dalio has pitched the "infectiously joyous and healthy" cards as simpler, easier, and different from material gifts that might be unwanted.

But charity cards may not go down well with those who — struggling financially amid historic inflation and heightened interest rates — would prefer a material gift.

Hans Peter Schmitz, a North Carolina State University professor researching billionaire philanthropy, told Business Insider that gift cards seemed a particularly good idea for wealthy people who might donate to charities anyway.

He advised ensuring everyone was on the same page and giving a more conventional gift alongside a card to avoid disappointing the recipient.

"It may be best to first ask and agree with family and friends that this is what everyone wants," Schmitz said. "It may also be worthwhile adding such a charitable gift along with something more personal."

"Any gift should still signify a personal connection and express more than just an expected transaction," he added.