It's almost holiday time again, and with the season of giving approaching faster than ever, many are already feeling the pinch of rising prices and inflation. According to various analysts, holiday shopping will be different this year, especially with average spending on gifts expected to surpass previous years. It’s not just about deciding what to buy but also about sticking to one’s budget amid tempting deals and compelling advertisements.
For many Americans, the holidays bring cheer but also stress about finances. A survey from the National Retail Federation forecasts consumers to spend about $1,200 per person this holiday season, which is up 10% from last year. Departments like electronics, apparel, and home goods see the biggest surges, often luring shoppers to splurge beyond their means.
This year, shoppers are advised to brush up on their budgeting skills. "Setting a clear spending limit can help mitigate impulse purchases," suggests financial expert Lisa Greene. With Thanksgiving and Black Friday just around the corner, strategizing is key. Greene stresses the importance of planning purchases instead of leaving everything to chance.
But it's about more than just having a number—it's about knowing where to shop. Major retailers like Walmart and Target often lead the charge with early sales and competitive pricing. For example, Walmart's Black Friday festivities are set to kick off early this year on November 11, much to the delight of shoppers eager to grab deals on tech gadgets and toys. With exclusive discounts for Walmart+ members, the membership program is booming, and many see it as the ticket to holiday savings.
Walmart's Black Friday sales will include major markdowns on coveted items like 4K TVs and video game consoles—items typically on everyone's wishlist. Online and early access shopping will also allow consumers to avoid the madness of last-minute shopping chaos.
Target is not one to back down either. Their approach includes holiday-themed events, promotions on household essentials, and even exclusive items made for the holidays. Both retailers are encouraged to compare prices online and utilize apps to track and score the best deals. Utilizing services like Target's same-day pick-up and ordered later delivery can lead to greater flexibility.
Holiday shopaholics might feel the urge to splurge, but it is critically important for them to keep their spending under control. To keep from going overboard, shoppers can create lists of things needed or wanted and stick to buying only those items. Using cash as opposed to cards has been suggested by many finance gurus to make the spending feel more tangible, giving more awareness to one's budget as goods are purchased.
A practical tactic is to plan purchase dates to take advantage of sales. For example, Cyber Monday will launch online-focused deals starting on December 1, where deals tend to be tech-centric—perfect for those wanting to get their hands on gadgets.
But there’s more to holiday budgeting than just expenses. Consider also the hidden costs of holiday shopping: shipping fees, taxes, and gift wrap. All of those little added costs can pile up quickly, adding stress if overlooked. Taking advantage of free shipping offers or promotional codes can yield significant savings. Many retailers are promoting free shipping campaigns leading up to Christmas, which can ease some of the financial strain of trying to get gifts under the tree.
Another factor shoppers need to manage is returns. Nearly every store has their return policy clearly defined, and knowing those rules can ease buyer’s remorse after holiday purchases. Be mindful of deadlines and make sure to keep the receipt until you are absolutely sure about the purchases.
It’s also wise to check bargain sites and apps later for compatible product comparisons to snag those competitive cash backs and discounts they might qualify for, such as on Rakuten or Honey. These platforms might be useful for saving more on holiday purchases made throughout the season.
With inflation impacting prices dramatically, budgeting should also extend to food and gatherings for those planning to host. Experts recommend meal prepping or potluck-style dinners to save on groceries and decrease waste. You can offer guests the option to bring something to the feast, which can ease individual financial obligations for attendees and help reduce the overall workload on the host. A fun holiday gathering with everyone pitching in can create more memorable moments.
Some even opt to forgo traditional gift-giving altogether, leaning instead toward experiences or crafts made by hand. Shared experiences can be far more rewarding than material goods, and often come with lower costs as they do not require large purchases.
Despite the increasing challenges with seasonal spending, it is still possible to enjoy the holiday spirit without breaking the bank. The key is to remain educated and informed about spending habits and where opportunities for savings may arise. Utilizing the latest sales notifications, making lists, and sticking to budgets can help transform this holiday season before another shopping spree takes place. Let the festive season be about joy, warmth, and togetherness rather than financial stress.
When everything is all said and done, the holidays should be cherished, not dreaded. Allow yourself to be prepared, yet remain focused on creating memories with loved ones this year.
