We all know the old adage, it's better to give than to receive. During the holidays people tend to enjoy seeing their smiling children and loved ones rip open their presents on Christmas. It's an even better feeling when you see their faces light up after their surprise is revealed. However some gift-givers tend to overdo it and spend more than they can afford.

"From what I'm seeing, it's typical of the holidays that people have already spent and they're scrounging to put money together," said Matt Rowley, the president and founder of Freedom Retirement Services in Reno.

2021 holiday spending is expected to be even more than 2020 for obvious reasons. More people are out-and-about and able to spend there money, unlike last year, when COVID-19 restrictions were in place for many businesses. Supply chain issues and inflation are other ingredients of a recipe for a more expensive holiday season.

Rowley said, "We are seeing a drastic increase of inflation which does hit us in the pocket books."

A recent study found companies will have spend about $223 billion more for the cost of goods due to supply chain issues, postal service delays and staffing shortages. And those costs could be passed on to consumers. According to a PwC survey, consumers will spend an average of $1,447 on gifts, travel and entertainment for the 2021 holiday season. The estimated amount is up more than 20 percent over last year.

With that in mind, Rowley provided tips for families so they can have a stress-free holiday season and avoid falling into debt.

"We want to feel that wonderful feeling that comes with giving a gift but we want to do it in an intelligent and thought out way," he said. "I do recommend making a budget, figure out everyone you want to buy gifts for, how much you want to spend for them. Include room for extras things like wrapping paper, shipping, and any other unforeseen expenses that typically come up with the holidays."

He said the earlier you plan and start shopping, the better.

It does help spread the cost out over a longer period of time and it could avoid higher prices. For those who wait right until the end, I believe they're going to see increased shipping costs that's why we recommend people are aware of shipping deadlines around the holidays." he added.

There will be no shortage of retailers claiming they have the best Black Friday and holiday deals, you'll even receive several emails and texts with those claims. However before you add items to your cart, Rowley advises people to do research before purchasing.

"A lot of times it can be misleading how much the sale is really for, or one may feel that it's a deeper discount than it is. Just be aware of what it could cost at the regular retail price and then figure out what the true sale price is." he said.

Regardless of what you choose to give your loved ones, Rowley said it's important to remember yourself and don't buy what you can't afford.

"With your holiday budget, do invest for yourself a little bit. Make sure you're not making things too tight on yourself or too uncomfortable for yourself during the Christmas and holiday season." said Rowley.

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