Are your finances holiday-shopping ready?

We face a dilemma during the holiday season. Resolving the question of how much to spend on gifts carries risks for our own personal finances as well as the financial fortunes of retailers and the millions of workers dependent on the trade for their livelihoods.

A new Bankrate survey finds close to half of Americans surveyed, women and parents more than most, indicate they’ve felt pressured to effectively overspend on holiday gifts. Among age groups, millennials and Gen Xers tend to feel this pressure more than their older counterparts.

The sales push hits its zenith in the coming days with Black Friday promotions. Trade group the National Retail Federation estimates that consumers will spend an average of $1007 during the holiday season this year, divided among gifts, food, decorations, flowers, greeting cards and other items. When it comes to wish lists, NRF found that the majority of consumers would like to have gift cards or gift certificates. Annual sales are seen rising about 4.5 percent.

No doubt, some retailers will fall short of their all-important sales goals in the coming weeks, putting them in further peril. The clock is ticking for Sears and Kmart, among others. Part of that is the natural sorting out of winners and losers that appears to have accelerated in recent years. Online sales are slated to continue staging double-digit percentage sales gains.

Anecdotally, on an individual basis, we also know that some shoppers will buy something for themselves as well. For retailers, every little bit that adds to their revenue and profitability is welcomed.

All of this occurs within the backdrop of rising consumer debt. The Federal Reserve Bank of New York reports total household debt rose to $13.5 trillion in the third quarter, now topping the previous peak seen exactly a decade earlier. The modest increase in wages and overall improvement in wealth, generally, has put consumers in position to manage that debt. But we know that some people will overindulge, leading to a case of financial regret in the new year. 

So, what to do?

-It is never too late to create a budget and to stick to the plan. To overspend is not sustainable. And, to overspend on gifts ultimately isn’t doing anyone any real favors in the long-term, including yourself.

-Pay off debt as soon as possible if using a credit card to pay for holiday gifts. By all means, make sure the debt is retired before you begin accumulating interest charges.

-Follow the smart shopping intentions of most gift givers who told our survey that they plan to actively seek out coupons and store sales to buy at reduced prices.

-Homemade gifts, potentially less expensive than those bought in-store, can generate every bit as much gratitude, or even more so. People appreciate the time, though and effort that goes into making them. These can be made handmade or home-cooked items, like a tin of cookies, for example.

-Limit gift exchanges to immediate family members. Even then, make sure that all potential targets for gifts in your family actually want to continue to exchange items. Some might want to forgo the process. The thoughtful sharing of your personal time could well be more valuable than ‘things” to some.

By being mindful of personal financial goals during the holiday season, we stand a better chance of going into the new year without a feeling of financial regret. Wouldn’t it be nice to start 2019 free of financial guilt thanks to smart spending habits during the holiday season?

Mark Hamrick is senior economic analyst and Washington Bureau Chief for Bankrate.com. He also serves as volunteer president of SABEW, the leading organization for financial and business journalists. He previously served as president of the National Press Club in Washington, DC.

 Follow me on Twitter: @Hamrickisms