Tag Archives: Budgeting for Holiday Shopping

Budget Your Way Through the Holiday Season

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The holiday season, while filled with joy and celebration – can also be a time of financial stress. On average, Americans spend around $1,500 between November and December holidays every year. Effective holiday budgeting is essential to navigating this festive period without causing long-term financial stress.

The Importance of Budgeting for the Holidays

Creating a holiday budget is the best way to control spending and avoid financial blues come January. It helps in prioritizing expenses, planning savings, and reducing credit card strain. A well-planned budget can provide peace of mind and keep holiday spending within manageable limits.

Crafting Your Holiday Budget

Select and utilize tools that suit your lifestyle – such as spreadsheets, budgeting apps, or the traditional pen and paper method. This helps in adhering to your spending limits and avoiding impulse purchases. Start by examining your current debt, especially credit card balances. If you’re unable to pay off these balances, it might be wiser to focus on paying down debt rather than indulging in extensive holiday shopping. Handmade gifts are an affordable alternative that your loved ones will surely appreciate.

Estimating and Allocating Your Budget

Begin by estimating your total income for the holiday season. This includes regular paychecks and any additional earnings from side gigs. You can also use last year’s data or a three-month average to help you plan. Next, list all your expenses and deduct regular costs from your projected income to determine your holiday budget. Remember to include any annual payments that fall during the holiday season.

Once you have a clear idea of your available budget, allocate funds to different categories of holiday spending. This could include travel, decorations, hosting holiday meals or bringing food items to various events, and gifts. Prioritize categories according to your needs and preferences.

Smart Shopping and Spending

Creating a detailed shopping list with names, budgeted amounts, and gift ideas can prevent overspending. Use price tracking tools and browser extensions to find the best deals. Maintaining discipline is key to avoiding financial regret later on.

Start Early and Track Your Spending

Don’t leave your shopping until the last minute. That way, you can take advantage of early deals – especially for travel and events. Set a goal for holiday savings and identify potential areas in your monthly budget where you can cut back, such as entertainment expenses. Consider the areas where you can cut back, and allocate those funds to your holiday spending budget or your savings account for post-holiday bills.

Using credit cards can be beneficial – but only when used wisely and repaid promptly. Rewards cards in particular (like our Visa Signature Cash Plus Card), can offer cash back or savings in other areas of everyday spending.* It’s also important to track your spending diligently, using dedicated credit cards or bank accounts and methods like budgeting apps or ledgers.

Post-Holiday Reflection

After the holiday season, take time to review your spending. This post-holiday evaluation will help you identify areas where you might have overspent and can plan more effectively for the next year.

Navigating the holiday season doesn’t have to be stressful. By adopting holiday budgeting strategies, you can enjoy the festivities without worrying about your finances. A little planning, discipline, and smart spending can go a long way in ensuring a joyful and savvy holiday season.

For additional budgeting help or questions, stop into your local branch or contact us today.

*APR varies up to 18% for purchases, when you open your account based on your credit worthiness. The APR is 18% APR for balance transfers and cash advances. APRs will vary with the market based on the Prime Rate. Subject to credit approval. Rates quoted assume excellent borrower credit history. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. No Annual Fee. Other fees that apply: Cash advance fee of $10 or 3% of the total cash advance amount—whichever is greater (no maximum), Balance transfer fee of $10 or 3% of the balance—whichever is greater (no maximum), Late Payment Fee of $29, $10 Card Replacement Fee, and Returned Payment Fee of $29. A First Financial membership is required to obtain a Visa® Credit Card and is available to anyone who lives, works, worships, or attends school in Monmouth or Ocean Counties.

 

How to Keep Holiday Shopping from Draining Your Finances

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If you’re stressed and money is a worry this holiday season, you’re not alone. According to a recent survey, 61% of Americans worry about extra spending during the holidays. Last year, 1 in 3 consumers went into debt after the holidays. Half of those consumers took 3 months to pay their holiday spending back, while others needed 5 months to pay it back.

Keep reading to find out a few ways you can financially prepare this year, and soften the blow to your budget.

Be sure to set a strict holiday budget

The first thing you want to do, is see if you can figure out how much you spent last year during the holidays and look at the gifts, food, and decorations you bought. Did your shopping last year leave you financially strapped and did it take multiple months to pay off? If so, you’ll want to rethink this year’s spending.

Create a gift idea list and approximate costs for this year. If you can’t afford the grand total on your monthly income after your necessities are paid (housing, utilities, food, gas, etc.) you will need to reconfigure your list. You also don’t want to stray from your list, once it’s done it needs to be done – don’t keep spending money on extra items.

Think of ways you might be able to cut back this year – do you really need to buy gifts for every person in your family or for all your friends? Perhaps in a larger family or a group of friends you can suggest doing a Secret Santa with an affordable purchase limit. This way you’re only buying one gift instead of multiple. In your group of friends, can you skip giving each other gifts and just go out to dinner or have a potluck meal together at someone’s home instead? These are all ways to keep your holiday spending budget down.

Take a look at your regular spending habits

In November and December you might need to cut back on your regular entertainment or dining out expenses in order to put those funds toward holiday gifts. How often do you go out to eat, stop at the nearest drive thru for a seasonal coffee, or use delivery services like DoorDash? These purchases can really add up. Try to cut back or cut them out altogether during the holiday season, and use that money toward your gift list instead.

The same goes for other entertainment expenses. Take a look at your subscription and streaming services – how many services are you paying for and are you even using them during such a busy time of year? Maybe pausing them for a month or two will pay for another gift on your shopping list.

Add to your monthly income

Do you have any extra availability on nights or weekends to pick up a part-time job for the holidays? Depending upon where you work, you may even gain an employee discount to help you save a little on gifts you can buy. You’d also be able to bring in additional income to help you afford holiday expenses.

Do your research on sales and discounts

Black Friday and Cyber Monday are coming up, but many retailers will also offer sales and promotions all season long. Be sure to research the retailers you plan to purchase from this year, follow them on social media and sign up for their emails. A lot of times, signing up for emails or texts gets you a first-time enrollment discount too. If you know you’d like to purchase gifts from a particular store, check your email in the morning and see if they have any promotions, coupons, or discounts going on that day.

Don’t forget your rewards credit card

Do you have a rewards credit card that offers cash back for purchases during the year or offers merchandise and gift cards? Login to your account before you start shopping for gifts. If you have money you can redeem for cash back, you can use these funds to buy gifts on your list. If your rewards credit card has a merchandise catalog you can redeem points earned for or merchant gift cards, cash in and you might be able to check some more off your gift list!

Our First Financial Cash Plus Cards offer cash back, merchandise, retailer gift cards, travel experiences and more – through uChoose Rewards. Learn more and apply today!**

Plan ahead for next year

It’s never too early to start saving money. If you don’t want to feel stressed about the holidays again next year, look for ways you can start saving now. For instance, at First Financial we have a Holiday Savings Account which can help you save for all your holiday expenses during the year. This account will allow you to have money deducted from each of your paychecks and sent to your Holiday Savings Account. Come next October, it will have accrued for you all year long and be available for you to use.

Don’t let the holiday season become stressful or a drain on your budget. With careful planning and saving – you’ll find you can afford the extra expenses this time of year often brings, and help spread some holiday cheer at the same time!

Want to see more articles like this? Subscribe to First Financial’s monthly newsletter for financial resources and advice.

*A $5 deposit in a base savings account is required for credit union membership prior to opening any other account. All personal memberships are part of the Rewards First program and a $5 per month non-participation fee is charged to the base savings account for memberships not meeting the minimum requirements of the program. Click here to view full Rewards First program details. Some restrictions apply, contact the Credit Union for more information.

 **APR varies up to 18% for the Visa® Cash Plus Card when you open your account based on your credit worthiness. This APR is for purchases and will vary with the market based on the Prime Rate. Subject to credit approval. Rates quoted assume excellent borrower credit history. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. No Annual Fees. Other fees that apply: Balance Transfer and Cash Advance Fees of 3% or $10, whichever is greater; Late Payment Fee of $29, $10 Card Replacement Fee, and Returned Payment Fee of $29. A First Financial membership is required to obtain a Visa® Credit Card and is available to anyone who lives, works, worships, volunteers, or attends school in Monmouth or Ocean Counties. A $5 deposit in a base savings account is required for credit union membership prior to opening any other account/loan.

 

Easy Ways to Save Money During the Holiday Season

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Have you started your holiday shopping yet (hopefully)? If you are needing some additional money or looking for ways to save this year, keep reading to find out a few easy ways to keep costs in check from now until the new year.

Only use cash: We’re living in an online world that makes spending money quick, too easy, and through electronic means. If you don’t usually carry cash, this is a friendly reminder that to pay for items – you physically need to shell out the money. This will feel more personal and be a better option if there is a budget you need to stay in line with (which hopefully you made a holiday shopping budget before starting to shop). Using cash is usually enough to make you think twice about what you are buying.

Write everything down: Every time you make a holiday purchase, write it down or save it in a note on your phone. By physically writing down or typing every dollar you use, you’ll quickly realize just how much money you are spending. This also works for non-holiday purchases this time of year. Also jot down other things you are buying (coffee, food, a pack of gum, etc.) for the month to help you realize where you can cut back and what might be unnecessary, impulse purchases. Hopefully this will be a wake-up call to help you cut back on any needless spending.

Layer up: Decreasing your electric or gas bill is another great way to save money this month. Sure, winter is coming in a couple weeks and it may be getting colder – but depending on where you live, your heat may not need to be fully on just yet (or it could at least be lower during the day when no one is home, or at night when you are wrapped up in warm blankets anyway). If the cold doesn’t bother you too much this December, grab a blanket, heavy sweatshirt, and socks – and turn the thermostat down. Dressing in layers can help keep you warmer too.

And there you have it, simple and easy ways to save some money this month!

 

Article Source: CUInsight.com

Tips for Creating and Sticking to Your Holiday Budget

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It’s that time of year again! Here are some budget conscious shopping tips as we head into the holiday season.

Set a Spending Limit: Before you start to shop, decide on an amount that you are comfortable with and can afford to spend on gifts this year. Be realistic and firm, and stick to this spending limit throughout the holiday season. Don’t forget to also factor in your regular monthly bills that will need to be paid during this time.

Don’t Forget You Might Need to Buy Other Items Besides Gifts: Other factors to include in your holiday spending budget might be travel, gift wrap, decorations, food, and clothing. These items may be outside of the holiday gifts you are purchasing, but can still add up and blow your holiday budget if you forget about them.

Do Your Research: Before you head out to the store or make an online purchase, do your research. How much do the things on your list cost, and are there any promotions or online deals you can take advantage of to save money? If the items on your list are ones you have purchased in the past, see if you have previous receipts or online order emails to remind yourself how much the items cost or where you purchased them.

Make a List: At the beginning of the season, make a gift list with one or two ideas for each person – within your budget of course. Try to create this list as soon as possible, so that if any of the items on it are on sale – you can get them early and at a discount. Be sure to also stick to your list – once it’s made, it’s made. Try not to buy extras or overspend.

Scale Back: If you’re on a tight budget and your gift list includes many people outside of immediate family or kids, you might need to consider cutting your gift list. Instead, you can always try a homemade gift that’s much less expensive for adults outside of immediate family (baking cookies, crafting something personalized) to save your holiday spending budget.

Try Secret Santa: If you have a rather large family or a big friend group – you can always try the Secret Santa gift method. This way you won’t have to buy an individual gift for everyone – you can simply pick one name out of a Santa hat, the group will set the spend limit together as a whole so it’s the same for all, and then you only have to buy one gift.

Compare Prices: Once your list is made, start doing some comparison shopping to see where you can purchase the items that will save you the most money. Check out early Black Friday deals (which many retailers have been participating in for 2021), Black Friday sales, Cyber Monday savings, and online coupons. Be sure to also sign up for emails with the retailers you plan to shop with this year, as well as follow their social media pages to keep an eye out for timely promotions.

Track Your Spending: Once you start purchasing gifts, keep a tally of how much you are spending to make sure you are in line with your original budget. Keep this as up to date as possible so you know how much you’ve spent and what is still left to buy.

Happy Holidays!

Article Source: News 12 New Jersey

Preparing for the Holidays Doesn’t Have to Be a Hassle

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The season of holiday shopping is here, and so is the inevitable financial stress — but you don’t have to panic. We’re here to help you conquer the chaos and take control of your finances, so you can give great gifts and feel great about what you spent too.

Budget the Day Away.

The first step for tackling the holiday shopping season is setting a budget. Your budget sets the tone of your whole shopping game plan — what gifts you can buy, which deals to look for, which payment type to use, and more.

Sure, you’ve probably heard the spiel about the importance of budgeting before. It can sound a bit intimidating or overwhelming at times — but it doesn’t have to be. Check out our budgeting guidebook or ask for budgeting help from one of our representatives to make this daunting task easier. The internet is also laden with websites and programs that can do the budgeting for you. Find what works best for you, then set up a spread sheet, scrawl it out in a notebook, or iron it out online. Find your budgeting flow.

Sit down with a nice hot cup of cocoa, wrap up in a cozy blanket, and budget away. Make a night of it and feel confident in your ability to get your finances together. You’ll thank yourself in the end.

Pick Your Weapons of Choice.

There are many ways to fund your holiday shopping. Figure out how much money you have available to spend immediately and what items you will need to buy through credit cards or fund with a holiday loan.

Our advice? Put down the high-interest rate credit cards and check out ours. Our credit cards* feature interest rates significantly lower than the national average; plus, our personal loans** can help you to fund your shopping and pay it off responsibly. We understand that our members have a lot of holiday cheer to spread, and we want to help you make it happen.

Start Your List, Check It Twice.

Santa isn’t the only one who should have a list. Get a pen and some paper (or save a note in your phone) and jot down everyone you want to give gifts to this season. Determine how much you can spend for each person first, then brainstorm gifts for each of your names. This is the fun part! Put on Santa’s hat and think of creative ways to show some love to your favorite people.

If you find yourself spreading your budget too thin, go back and adjust the names on your list and the spending amount. Remember, not every gift needs to cost money — don’t underestimate the joy that a homemade gift or a good deed can bring to the holiday season.

Choose Wisely.

You have your gift list, now you need to perfect it. Browse the internet to get an idea of the deals that will be happening near you, either in a store or online.

Compare deals you see for the same item across stores and websites — one company may be selling the item for significantly less than another. You deserve the best deal. Put in the work to find out which stores are promoting the best sales, and make sure the item is still in budget after you factor in taxes and shipping costs.

Finalize Your Plan of Attack.

While many companies offer deals throughout the months of November and December, some are specific to days like Black Friday or Cyber Monday. These two days can easily become chaotic if you don’t have a good game plan.

Research which deals are offered online and which require you to show up in person. Because of health and safety concerns this year, many stores will most likely be shifting to an online Black Friday experience, but you should still double check. Also research store hours for any place you might need to visit in person. Store hours may likely be adjusted for Black Friday and COVID-19 precautions, so keep a close eye on company websites for the latest updates.

Another shopping holiday to look out for is the lesser known but crucially important Small Business Saturday. It falls between Black Friday and Cyber Monday, and it is more important than ever this year. With the pandemic still in effect, many small businesses are struggling. On Small Business Saturday, local businesses usually break out great deals and some even organize seasonal events for their customers. This day is a great way to give back to your community, so look into the local businesses nearest to you and see how you can support them.

Shop Responsibly.

Now that you have a budget, a list, and a plan of attack – you are all set to shop responsibly this holiday season. The holidays are a time for joy, so don’t let your finances stress you out. Instead of panic-spending and budget-breaking, take some time to prepare and research your options, like low-interest credit cards or a holiday personal loan. You’ll be happy you did, especially when those on your gift list and your wallet are thanking you.

*APR varies up to 18% for purchases, when you open your account based on your credit worthiness. The APR is 18% APR for balance transfers and cash advances. APRs will vary with the market based on the Prime Rate. Subject to credit approval. Rates quoted assume excellent borrower credit history. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. No Annual Fee. Other fees that apply: Cash advance fee of $10 or 3% of the total cash advance amount—whichever is greater (no maximum), Balance transfer fee of $10 or 3% of the balance—whichever is greater (no maximum), Late Payment Fee of $29, $10 Card Replacement Fee, and Returned Payment Fee of $29. A First Financial membership is required to obtain a Visa® Credit Card and is available to anyone who lives, works, worships, or attends school in Monmouth or Ocean Counties.

*APR = Annual Percentage Rate. Actual rate will vary based on creditworthiness and loan term. Subject to credit approval. Personal Loan repayment terms range from 12 to 60 months, and APRs range from 10.24% APR to 18% APR. Minimum loan amount is $500. Loan payment example: A $2,000 Personal Loan financed at 10.24% APR for 24 months, would have a monthly payment amount of $92.51. A First Financial Federal Credit Union membership is required to obtain a Personal Loan or Line of Credit, and is open to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. A $5 deposit in a base savings account is required for credit union membership prior to opening any other account/loan. 

How to Holiday Shop and Not Regret it in the New Year

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It’s the holiday season and we love spending money on those we care about right? It’s very easy to overspend when it comes to holiday shopping.  According to a recent Gallup study, 1/3 of consumers expected to spend over $1,000 on gifts. While that might seem like a great idea in December, there may be some regrets spending that amount come January. If you’d like to avoid demolishing your budget with holiday spending this year, consider these few tips.

Stick to a set budget: It can be really easy to add a few extra items to your shopping cart when you see big sales and savings. It can be even easier if you’re shopping online. What you really need to do is plan ahead, and if you already missed the boat this year – start now for next November. Figure out how much you’ve set aside to spend and don’t allow yourself to make any last minute or impulse purchases. Think about who you’re buying for and pick out something within budget that you know they’ll love. If you’re under budget, choose some smaller items or stocking stuffers until you’ve met your spending goal.

Start early: Are you a last minute shopper who typically hits the mall on December 23 or 24? Unfortunately you won’t find nearly as many deals on December 22 or 23 as you would if you started looking in early November.  Plus, even if you do find exactly what you’re looking for, you’ll probably be in such a hurry to finish your shopping, that you may be forced to pay whatever the price tag says without any sale options since you’ll be out of time.  If you start coming up with ideas in October or November, you’ll have plenty of time to do your research, save up, and find the best deals. Don’t overpay for last minute gifts that you could have gotten on sale weeks ago.

Save your receipts: There’s nothing worse than buying someone a clothing item and then finding out you bought the wrong size. No matter what you’re buying, there’s a chance it’s going to need to be returned. If you don’t have receipts, it’s quite possible the store won’t refund your money in full. If you can remember to get a gift receipt and include it with your gift – even better!

If you would like to get ahead of the game for next year’s holiday shopping – ask us about our Holiday Club Savings Account. You can easily setup payroll deductions from each paycheck to automatically go into the account, and by October you’ll be all set to shop for everyone on your list!*

*A $5 deposit in a base savings account is required for credit union membership prior to opening any other account. All personal memberships are part of the Rewards First program and a $5 per month non-participation fee is charged to the base savings account for memberships not meeting the minimum requirements of the program. View full Rewards First program details at firstffcu.com.

Article Source: John Pettit for CUInsight.com