The average American may spend nearly $1,500 on the holidays

Here's where they can afford to spend the most.

VIEW IN BROWSER | SUBSCRIBE WED, DEC 7, 2022 This week's newsletter was written by Cheyenne DeVon, a reporter covering money and investing for CNBC Make It. You can follow her on Twitter @CheyenneReports.    'Tis the season to be spending.   Holiday retail sales are predicted to soar as high as $960 billion, according to the National Retail Federation. In 2021, overall holiday spending reached a record $889 billion.   Americans are expected to spend about $1,455 each this season, according to Deloitte's latest study. That's around the same as last year's average of $1,463 per person.   But in some cities, consumers could spend nearly three times as much. Personal finance site WalletHub calculated the maximum amount consumers can afford to spend on holiday shopping in more than 550 U.S. cities, using five key metrics: income, age, debt-to-income ratio, ratio of monthly income to monthly expenses and ratio of savings to monthly expenses.   For the calculations, WalletHub used data from a number of agencies, including the U.S. Census Bureau, U.S. Bureau of Labor Statistics and the IRS.   Here's a look at the 10 cities where Americans can afford to spend the most on holiday gifts:  Newton, Massachusetts: $4,233  Palo Alto, California: $3,920  Flower Mound, Texas: $3,531  Milpitas, California: $3,480  Bellevue, Washington: $3,401  Mountain View, California: $3,258  Sunnyvale, California: $3,237  Santa Clara, California: $3,224  Ellicott City, Maryland: $3,122  Fishers, Indiana: $2,969 For many Americans, higher budgets may be needed to keep up with rising costs. The prices of popular holiday staples, including toys and gift wrap, have increased substantially compared with last year.   In fact, about half of shoppers cite higher costs as the reason they'll be spending more this year, Deloitte reports. But there are still ways to avoid overspending.   "Budgeting a certain amount for a given holiday is the best way to control expenses," Sampath K. Kumar, Ph.D. and professor of marketing at the University of Wisconsin-Green Bay, tells WalletHub.   Try opting for cash instead of credit cards, Kumar says. That way, you'll be forced to stop when the cash runs out, avoiding spending more than you planned.   If you do choose to use a credit card for your holiday purchases, set up spending limits. That way, if you pass that limit, you'll start receiving notifications   And remember the age-old adage: It's the thought that counts. "Gifts are symbolic measures of love," Kumar says. "A flower conveys love as efficiently as a jewel does."   Register now for the free CNBC Make It: Your Money virtual event on Dec. 13! It will give you actionable ideas to level up your earning power. From making the most of that side hustle, to generating passive income, to learning how to negotiate like a boss, find out how you can earn more, while possibly working less. What do you want to see from the Make It video team? Take this survey to share your thoughts. Trending articles from CNBC Make It This 28-year-old built a side hustle that brings in $30,000 a month: 'I only have to work 6 hours a week' People who live to 100 don't eat like typical Americans: Here are 'the 5 pillars of a longevity diet' A $7,000 penny could be hiding in your pocket—here's how to identify it In the U.S., you can legally 'be fired for any reason or no reason at all'—here's why The 3 most 'recession-proof' job candidates that are in demand even during a downturn, according to a recruiting expert Unsubscribe Manage Newsletters Digital Products Join the CNBC Panel Feedback Terms of Service Privacy Policy   © 2021 CNBC LLC. All rights reserved. A property of NBC Universal. 900 Sylvan Avenue, Englewood Cliffs, NJ 07632 Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes and Market Data and Analysis. Data also provided by THOMSON REUTERS