holiday budget tips | blog.firstffcu.com

It’s the holiday season, and we know the excitement of gift giving is often coupled with the challenge of keeping your finances in check. Online shopping, while offering convenience – can lead to overspending and financial stress. At First Financial, we understand these challenges and are here to guide you through the holiday season with essential tips to avoid costly shopping mistakes.

The Art of Creating a Holiday Budget

The first step to smart holiday spending is establishing a budget. This isn’t just about setting limits; it’s about foreseeing and planning for all the expenses the season brings. From gifts to holiday cards, parties, and travel – every potential cost should be considered. By listing these expenses and calculating a total budget, you set a clear financial boundary for yourself. The most critical aspect however, is adhering to this budget. Discipline in spending is key to avoiding post-holiday financial regret come January.

Navigating Credit Card Use

The holiday season often brings with it the temptation to rely heavily on credit cards. While credit cards can be useful tools for managing expenses, they can also encourage overspending. People tend to spend more when they’re not parting with physical cash. To counter this, we recommend using a rewards credit card wisely. While this type of card usually offers benefits like cash back or merchant gift cards, be cautious of high interest rates that can accumulate. Additionally, it’s important to resist impulsive sign-ups for store credit cards at checkout. These quick decisions might offer short-term savings, but can have long-term impacts on your credit score.

Thoughtful Gift Giving

When it comes to gift giving, remember it’s the thought that counts. Extravagant gifts don’t necessarily mean more to the recipient. In fact, studies show that many people don’t remember most of their gifts by the next holiday season. Hence, choosing meaningful gifts over expensive ones not only saves money – but also adds a personal touch to your present.

The Strategy of Shopping

Effective shopping strategies go a long way in saving money. Making a list of people you’re buying gifts for and what you plan to get them can prevent the common mistake of forgetting someone. Additionally, comparing prices online before heading to the stores can help you find the best deals. Keep an eye out for price-matching opportunities and consider store pick-up options to save on shipping costs. Making your purchases online if you can get free shipping, is another strategy that can be of convenience during this busy time of year.

Timing Your Shopping

The timing of your shopping can significantly impact your budget. Last-minute purchases often lead to rushed decisions and overspending on gifts. Conversely, starting too early can lead to a prolonged shopping period, resulting in buying more than necessary. Balance is key – start early enough to monitor prices, but not so early that it leads to unnecessary purchases.

Year-Round Financial Planning

An effective way to ease the financial burden of holiday spending is to plan throughout the year. Setting aside a small amount each month in a holiday savings account like our Holiday Club Account can make a big difference when the season arrives.* This approach spreads out the expenses, reducing the financial strain during the holidays.

Leveraging Online Tools for Savings

Finally, don’t overlook the power of online sites like Honey and Rakuten. These tools can provide significant savings through promo codes and cash back offers. Integrating these into your online shopping routine can lead to considerable cost savings.

By following these guidelines, you can enjoy a festive holiday season without the stress of financial fallout. Remember, First Financial is always here to assist you in managing your finances effectively. If you have questions or concerns, contact us today or stop into one of our branches.

Happy Holidays, and happy shopping!

*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.

Thanksgiving is a time for family, tradition, and, of course – lots of food. But if you’ve ever hosted a Thanksgiving dinner, you know the holiday can be a bit stressful and expensive. Between buying all the ingredients, spending time cooking, and making sure your home is ready to accommodate others – there’s a lot to plan and budget for.

The holiday season might already be a burden on your budget, and throwing inflation into the mix doesn’t make it any easier this year. According to the USDA, grocery prices have increased by over 13% from 2021 to 2022. That’s why it’s so important to consider cost-effective alternatives to the traditional Thanksgiving meal.

Here are 4 ways you can host Thanksgiving on a budget this year.

Plan your budget and menu

Before hosting any party or gathering, you should always create a budget. Don’t just consider which ingredients you need, but rather what you can reasonably afford. Start by listing out your expenses and income to determine what you have left to spend. From there you’ll have a better idea of what your menu will look like based on your budget.

Ahead of going to the grocery store, you should know what your main course will be and the types of sides you’ll be serving. Knowing any guest dietary restrictions will be helpful before you shop as well.

Shop generic brands

According to News 12 New Jersey, Thanksgiving turkeys typically take up 40% of the holiday budget and are one of the most expensive parts of the meal. And while turkey may be a holiday staple, you can always find a more affordable bird when comparing brand prices. For example, a ShopRite 24-pound fresh turkey could cost $40, Butterball is $52, and organic brands cost around $77. If you’re feeding fewer people, consider buying a turkey breast instead of the full bird. Also, don’t forget about your grocery store rewards or coupons. If you frequent ShopRite, be sure to take advantage of the free frozen turkey or ham you may be able to get this time of year.

Try something new

With a 28% cost increase per pound this year, you might want to consider nixing buying a turkey entirely. Sure Thanksgiving is all about traditions, but what better opportunity to start a new ritual with your loved ones – especially if it’s saving money? We recommend trying a different cut of meat like roasted duck, beef, or even plant-based options – all of which won’t be as heavily priced this time of year. You can even challenge yourself to try new cuisines by making Native American staples to honor the history of the holiday.

Turn it into a potluck

Get your guests involved and host a potluck! Sharing the burden of cooking not only saves you time, but it’s also easier on your wallet. Even if you don’t want to do a full-blown potluck, you can ask your guests to bring beverages or desserts. Start a conversation with your group to see what they would be comfortable bringing and make sure you have all the fixings for the main course, sides, and appetizers.

No matter what your plans are this Thanksgiving and holiday season, the team at First Financial is here to help with financial resources, accounts, loans, and more. Talk to us about becoming a member by calling 732-312-1500 or stop by our local branches.

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$5 in a base savings account is your membership deposit and is required to remain in your base savings account at all times to be a member in good standing. All credit unions require a membership deposit.