Photo provided
The festive and fun nature of the holiday season can make it easy to forget the benefits of being frugal. Many people go overboard on holiday spending, making this time of year costly for consumers.
Sales between the beginning of November 2023 and Christmas Eve 2023 climbed 3.1 percent from the year earlier, according to the Mastercard SpendingPulse. The National Retail Federation reported in November 2023 that holiday spending was expected to reach between $957 and $966 billion. Trading Economics, a financial market indicator and forecast provider, said personal spending in the United States only rose 0.2 percent in May 2024 from the previous month, which marked the lowest increase since January 2024.
Shoppers who want to spend less and stick to a budget for holiday entertaining and gifting can keep these budgeting tips in mind.
• Set a value to gift recipients. It may sound harsh, but certain people on holiday shopping lists may be assigned a higher value than others. For example, you wouldn’t necessarily spend the same amount on a gift for a child’s teacher as you would for a grandmother. Putting a dollar figure next to each name on the shopping list helps you identify your expected spending and where you can cut back.
• Establish your overall budget. Once you have an idea of your potential holiday expenditures, set a firm budget. Avoid the temptation of impulse buys.
• Begin shopping early. Start scouring ads and looking for deals prior to Thanksgiving or Black Friday. Keep a running list of gift ideas and when the price is right, purchase those items.
• Price check “perfect gifts.” If you’ve spotted the perfect gift for someone but it’s beyond budget, see if you can find a better price elsewhere, says Better Money Habits. There are apps that allow users to scan barcodes and check items across various retailers. Many stores also have price-match policies that can save shoppers money.
• Look for deals all of the time. Many people get hung up on perceived deep discounts from Black Friday and Cyber Monday offers. However, industry experts say there often isn’t a huge difference in markdowns between these promotions and those during other sales. Some retailers even increase prices on goods only to mark them down for Black Friday to make it appear that there is a discount. Only by knowing the average price for items can you know if a sale is legitimate.
• Sign up for store rewards. If you don’t want your regular email inbox inundated with offers, set up a separate email account for in-store and online shopping. Then you can sign up for the rewards programs at checkout. Utilize the coupon codes and advertisements for sales to save money without having your primary email data shared with other marketers.
• Track spending carefully. If you don’t know how much you’re spending, then you cannot possibly stick to a budget. After each purchase, keep a running tally of all holiday spending to see how far you are from the finish line.