Naperville Residents Ring In with the 9th Highest Holiday Budget in the Nation!
Wallet Hub figured out the average holiday budget this year for a bunch of cities across the country, and Naperville is near the top of the list!
The median budget for all 570 cities they looked at is $686. But people in a few cities will spend A LOT more than that. According to the study, Napervillians can afford to spend about $2,566 on average this holiday season.
How did WalletHub come to that conclusion:
In order to determine the cities with the biggest holiday budgets, WalletHub compared 570 cities across five key metrics:
3) Debt-to-Income Ratio
4) Monthly Income-to-Monthly Expenses Ratio
5) Savings-to-Monthly Expenses Ratio
Our calculation is based on WalletHub’s proprietary algorithm, which takes into account the aforementioned five factors to determine the holiday budget for a particular city.
At a high level, our algorithm considers a consumer to be in a comfortable financial position to engage in holiday spending if they have:
1) enough emergency savings to cover at least six months of expenses and
2) a debt-to-income ratio smaller than 22 percent for a renter or 43 percent for a homeowner.
Depending on a city’s specific characteristics, the algorithm adjusts upward or downward to create a custom estimate.
I never pretend to be a finance major, but here’s my takeaway: If you are getting a gift from someone who lives in Naperville…it should be a pretty nice gift!