As this holiday season kicks off, you may already be worried about a credit card hangover come January. Many of us tend to spend more than we planned as we get into the spirit of the holidays or find good deals that are too hard to pass up. But what is the right amount to spend at this time of year?

There’s a rule of thumb, suggested by several personal finance experts, that you should spend no more than 1.5 per cent of your gross income. For a family earning $100,000, that’s $1,500, which is close to the typical holiday budget.

RBC’s survey found that Canadians, on average, expect to spend $1,218 on holiday purchases, including gifts, decorations and entertaining. It may seem like a lot of money to spend on a holiday, but the expenses accumulate quickly when you have a long gift list and host gatherings with family and friends.

Click here to read the full article on the Globe and Mail web site.