Americans Are Feeling Worse About Their Finances—Should You Delay a Big Purchase Before the Holidays?

A major holiday purchase can look affordable at checkout while putting pressure on savings and future monthly cash flow. Checking what remains after the purchase can reveal whether waiting makes more sense – Shutterstock

Americans have a new reason to pause before making a major purchase this holiday season: their confidence in their own finances has slipped. A new NerdWallet Financial Resilience Index found that 73% of Americans felt in control of their day-to-day finances, down from 77% in July. At the same time, fewer people expected a recession than earlier this year.

That combination matters because a big purchase does not live in isolation. A new television, appliance, vehicle, furniture set or expensive trip can look affordable on the day of purchase and still make January much harder. Before moving ahead, shoppers need to look beyond the price tag and ask what the purchase does to cash reserves, monthly bills and available credit.