During the holidays, you're likely to overspend, an expert advises — here's how to control your spending.

• According to a behavioral finance expert, consumers tend to prioritize short-term thinking over long-term financial goals.
• According to a Gallup poll, the average American expects to spend $1,014 on holiday gifts this year.
• Experts advised that there are methods to monitor your expenditures during the festive season.

While the holiday season is a time to express gratitude, review the past year, and bond with loved ones, it's easy to overspend on gifts if not cautious.

A recent NerdWallet poll revealed that approximately 83% of Americans intend to purchase gifts for their loved ones during the upcoming holiday season.

According to a Gallup poll published Oct. 25, Americans anticipate spending an average of $1,014 on Christmas or other holiday gifts in 2024, which is "substantially more" than the $923 reported last year.

According to a NerdWallet survey, about 10% of consumers plan to use their emergency funds to purchase gifts, while 9% will prioritize gift-buying over paying household bills such as utilities and debt payments.

A recent EY survey indicates that almost half of shoppers will finance their spending this year through loans or credit cards. Meanwhile, NerdWallet reports that 28% of individuals are still paying off credit-card debt from the 2023 holiday season.

Experts claim that people have an inherent tendency to spend more than they should, as they are "hardwired" to be consumers, according to Brad Klontz, a psychologist, financial planner, and behavioral finance expert.

"According to Klontz, a member of CNBC's Financial Advisor Council and the CNBC Global Financial Wellness Advisory Board, for 99% of our time on earth, focusing on the long-term future has not been beneficial as our primary concern has been meeting our immediate needs."

56% of Americans say parents never discussed money with them.

Giving gifts to loved ones can provide short-term satisfaction, but it can also distract from long-term financial goals, according to Klontz. This is a common mistake that people make.

Our long-term goals are abstract, which means we need to do extra cognitive processing to delay instant gratification, allowing us to overspend, he stated.

Consumers may feel pressured to spend more than they prefer due to the fear of being perceived as "cheap," according to Andrea Woroch, a consumer finance expert.

She stated that many companies promote deals, particularly on Black Friday and Cyber Monday, which can induce a "buying frenzy."

How to avoid overspending during the holidays

Experts advised that consumers can manage their holiday spending by using different methods.

Here are some of their tips.

• Develop a spending plan now for the holiday season, Klontz advised. It's not too late, even over Black Friday weekend. Consumers can use a gift list tracking app like Santa's Bag to track purchases and actual spend, Woroch suggested.

• Instead of focusing solely on gifts, Woroch advised considering other seasonal expenses such as groceries, holiday attire, family photos, and donation drives. It may be necessary to reduce spending on gifts or cut back on certain costs to accommodate these expenses.

• Woroch advised setting gift expectations with family and friends now. This could mean focusing on kids only or setting up a "Secret Santa" exchange to reduce the number of gifts to buy. Instead of a physical gift, consider doing an activity together or setting a gift budget, she suggested.

• Woroch suggests utilizing free rewards to offset gift costs. For instance, she advises signing up for retail loyalty programs to earn money back for other gift purchases; shopping through cash-back portals like CouponCabin.com or Rakuten for online purchases; and downloading a browser extension like Fetch to earn rewards or free gift cards.

• Reflecting on your long-term goals can help you resist impulsive short-term purchases.