Improve your holiday savings this season: Tips for shopping, spending and budgeting
With the leaves changing and football season in full swing, it can only mean one thing: The holidays are right around the corner. But between Halloween, Thanksgiving, and Christmas, the most festive time of year can also be a burden on your budget.
It’s common to have concerns about money during this season. Recent surveys have shown nearly two-thirds of American shoppers are stressed about rising prices and holiday shopping. But with a little planning, you can enjoy stress-free holiday shopping. Consider these holiday saving, shopping, and spending tips.
Start planning early
Do you usually wait until December to start your shopping? You may be able to save some time and cash by taking advantage of early season sales now. Spreading out your spending over a few months leading up to Christmas can make cash flow a bit more manageable.
If you usually wait until Black Friday or Cyber Monday to start shopping, it’s helpful to know what deals to shop and which to skip. Black Friday, and the online shopping day, Cyber Monday, are both known to offer good prices for:
- Electronics, such as computers, televisions, tablets or phones
- Small home appliances, such as a new coffee maker, toaster oven or blender
- Travel deals on airfare, car rentals and hotel reservations
- Video games for Nintendo, PlayStation or Xbox
Here are a few tips about purchases and sales you may want to skip:
- Fitness equipment, which goes on further sale in February, after New Year’s motivation wears off
- Jewelry, which tends to go on major sale in December and even further in January
- Large home appliances, which usually go on better markdowns during holiday weekends such as Memorial Day, Labor Day or President’s Day
- Toys, which tend to be priced lower in the weeks leading up to Christmas
- Winter clothing, which is lowest-priced during off seasons
Make a budget
Draw up a list of all your anticipated holiday expenses. Include all gifts, décor, travel expenses and donations. Try to trim your list as much as possible by cutting non-essentials and using items you may already have in storage. You’re aiming for the magic dollar figure that will cover everything on your list that you can realistically afford.
Next, assign specific dollar values to each expense category and for each person on your gift list. Make a list of gift ideas to help you stay focused and only buy what you have pre-planned.
Shop Smartly
There are many hacks that can help you stay on track with your budget. Keep your spending to a minimum with these holiday shopping tips:
- Use shopping apps, like the Coupons App and Groupon, to get your favorite retailers’ best deals and coupons delivered right to your phone.
- Shop online on Tuesday morning. Research shows this time of week is when you’ll find the hottest online deals.
- Shop with a friend. Take advantage of buy one, get one (BOGO) sales by splitting the cost of a single item with a friend and each of you taking one item home.
- Get rewarded. Use a credit card that offers cashback to get a little something back from your purchases.
Track as you go
As you shop, keep a careful account of exactly how much money you’ve spent for each person and in each expense category. Review your budget and spending often so you stay on task. Try to pay credit card balances in full when your statement arrives to avoid piling up debt and paying finance charges.
You may use a spreadsheet, app or pen and paper to keep track. Using an app like Santa’s Bag can make this job easier. The app allows you to set a budget for each person on your list and simplifies tracking.
Enjoy a stress-free holiday season
By following these easy tips, you can enjoy the season without breaking the bank. Take the stress out of next year by starting your Santa Savings Account now.
Learn more tips
Want to learn how to spend less all year round? Visit our Learning Lab for more tips and tricks.
