Average Holiday Budget In Rhode Island: WalletHub

PROVIDENCE, RI — Rhode Islanders are almost right in the middle of holiday budgets compared to other major U.S. cities, according to a new study by WalletHub. The personal finance website ranked the average holiday budgets of 570 cities across the country, with Providence near the middle at $813.

Palo Alto, California, was again in the top slot with $3,056. The city also had the highest holiday budget in 2019's ranking.

"It is clear that COVID is driving a further divide into the incomes of Americans. We will likely see a reflection of that on holiday spending.," said Thomas Jungbauer, an assistant professor at Cornell University, explaining that people who lost their jobs due to the pandemic or saw major impacts to their industry will likely reduce holiday spending, while more affluent Americans might end up spending more if their income was not affected.

To avoid overspending and keep track of holiday finances, Jungbauer encouraged making and sticking to a budget.

"Writing down a budget allows people to understand how much expenses on Christmas presents, feasts, etc. would be healthy," he said. "It is not so much that we can act according to a plan we made earlier but being aware of the numbers typically creates a spending conscience in most of us, that is budgeting will keep some of us from overspending while it reduces overspending in others because we want to avoid suffering from a guilty conscience."

To determine the ranking, WalletHub weighed several factors, including income, age and saving-to-monthly-spending ratio.

Rhode Islanders' holiday budgets have ballooned since last year, according to WalletHub. Last year, Providence was the last in the country at just $111. This year's number is approximately right times higher.

This year, credit card debt is expected to continue to be a problem in countless American households, totaling more than $1 trillion total at the beginning of the year. This year, the average household carries nearly $8,000 in credit card debt.

Here are the 10 cities with the highest holiday budgets.

1. Palo Alto, CA: $3,056
2. Flower Mound, TX: $2,973
3. Naperville, IL: $2,867
4. Sunnyvale, CA: $2,829
5. Newton, MA: $2,768
6. The Woodlands, TX: $2,729
7. Sugar Land, TX: $2,728
8. San Mateo, CA: $2,722
9. Mountain View, CA: $2,704
10. Weston, FL: $2,698

Read the full ranking here.