(The Center Square) — Holiday cheer may come with a hefty price tag, especially for residents in Louisiana, where holiday budgets rank among the lowest in the nation, according to WalletHub’s annual study of seasonal affordability.
The personal finance website analyzed 558 U.S. cities based on income, debt, expenses, and savings to determine how much residents can comfortably spend during the holidays.
In Louisiana, Baton Rouge ranked 550th, with an average holiday budget of $567. Shreveport followed closely at $644, and New Orleans placed 521st at $727.
By contrast, residents in smaller population centers like Kenner and Metairie fared better, with budgets of $1,375 and $1,323, respectively.
Nationwide, WalletHub projects holiday sales to exceed $980 billion, a 2.5% to 3.5% increase from last year.
However, this spending spree comes amid rising financial pressures. WalletHub reports that the average household credit card debt surged in the third quarter of 2024, adding strain to many families’ budgets.
“These findings highlight the importance of balancing holiday spending with financial well-being,” a WalletHub spokesperson said. “A holiday budget isn’t just about gifts — it’s about avoiding regret come January.”
WalletHub’s algorithm accounted for income levels, age, and financial stability indicators like savings-to-expenses ratios and debt-to-income ratios. Residents with six months of emergency savings and manageable debt levels typically scored higher, while those struggling with rising credit card debt and tight budgets ranked lower.
While Louisiana residents in cities like Lafayette ($1,255) and Lake Charles ($763) have more flexibility than those in Baton Rouge, experts suggest taking extra care with holiday expenses.
Financial planners advise setting realistic budgets and avoiding carrying credit card balances into the new year to prevent adding to long-term debt.
For Louisianans, this holiday season might be more about creativity than extravagance. But as WalletHub emphasizes, “The best gifts are ones you can afford without stress.”
