Tag Archives: Holiday Spending

How to Use Your Credit Card Responsibly as the Holiday Season Approaches

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The holiday season is just about upon us, as decorations go up, shopping lists grow, and with travel, gifts, dining out and year-end fun – your credit card usage may begin to spike. At First Financial, we want to help you make the most of having a credit card without letting it become a source of stress or debt. With a few smart habits, you can enjoy the convenience and rewards of a credit card and protect your financial health this upcoming holiday season.

1. Pay Your Balance in Full and On Time

When you carry a balance month to month, interest creeps in – and that can turn a festive purchase into a long-term burden. Experts recommend paying the full statement balance whenever possible (or at least more than the minimum) to avoid interest charges. Setting up automatic payments will help ensure you never miss a due date and get charged a late fee, which is one of the largest factors in your credit profile.

Holiday tip: Before you swipe or tap for that festive party or outing, ask: “Will I be able to pay this off when the bill arrives?” If yes, go ahead. If not, consider adjusting your plan.

2. Keep Credit Utilization Under 30%

Credit utilization is the percentage of your available credit that you’re using and it’s one of the key drivers of your credit score. Experts suggest keeping it under 30%.

Holiday tip: If you have one card with a $5,000 limit, aim to keep the balance below $1,500. If you plan on heavy seasonal spending (gifts, travel), consider spreading purchases across multiple cards or paying down running balances before the statement posts.

3. Understand Your Card’s Terms and Fees

Before you rush into holiday spending, take a moment to review your card’s terms, interest rate, penalty fees, foreign transaction fees (if traveling), cash advance fees, and any annual fees or promotional offers. You want to avoid surprises. For example, some cards may charge more if you miss a payment and trigger a higher penalty rate.

Holiday tip: If you’re traveling during the holidays or giving gifts internationally, make sure your card doesn’t charge extra fees for foreign transactions.

4. Automate Payments and Use Alerts

One of the simplest ways to stay on top of your card: Turn on alerts for due dates, when you approach your credit limit, or when a charge posts. These alerts can help you avoid missed payments and the resulting fees.

Holiday tip: Since your schedule may be hectic with shopping, travel, and events, automation and alerts can help ensure that you won’t forget a payment in the rush of the season.

5. Use Rewards Responsibly

Rewards cards are a great perk, they can make your regular spending work for you. But they truly pay off when you’re paying off your balance regularly. Otherwise, the interest you pay may outweigh the reward value.

Holiday tip: Use your First Financial Cash Plus Credit Card to earn rewards on essentials you’d be buying anyway (groceries, travel, gifts) but avoid charging “just for points,” unless you can pay it off right away.

Don’t have one of our Cash Plus Cards? Apply today.*

6. Don’t Miss Out on Welcome Offers, But Don’t Overspend to Chase Them

Many cards offer attractive sign-up bonuses or introductory offers. These can be worth it, as long as you don’t buy more than you can afford just to qualify. Overspending may cost you more than the bonus is worth.

7. Create a Holiday Spending Plan

Because holiday spending tends to spike, it’s wise to create a mini-budget specifically for the season. Estimate the cost of gifts, travel, meals out, décor, shipping, etc. Then decide how much you’ll put on your credit card and ensure you can pay it off as quickly as possible. Keeping this in mind helps you avoid accumulating a balance that you’re still paying off after the decorations come down.

8. Choose the Right Card and Talk to Us

We offer credit cards designed with your financial well-being in mind. We provide competitive rates, transparent terms, rewards programs, and flexible payment options.* If you don’t already have a credit card with us, or if you’d like to compare your current card to see if we’re a better fit, now’s a great time to reach out.

Why go with First Financial?

Here at First Financial, we’re not just issuing a credit card – we’re also partnering with you in your financial journey.

The holiday season is a wonderful time for giving, gathering, and making memories, and shouldn’t be marred by financial stress. By sticking to a holiday spending plan, you can enjoy the season and maintain strong credit health.

Let us help you make the most of your credit card this holiday season. Visit your local branch to review your options, set up automated payments and alerts, or simply get advice tailored to your spending plan. Here’s to a happy, financially healthy holiday season!

*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. Your First Financial Visa® Cash Plus Credit Card will earn cash back based on your eligible purchase transactions. The cash back will be applied to your current credit card balance on a quarterly basis and be shown cumulatively on your billing statement. Unless you are participating in a limited time promotional offer, you will earn 1% cash back based upon eligible purchases each quarter.

Avoiding Costly Shopping Mistakes This Holiday Season

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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.

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.

 

3 Ways to Recover From a Blown Holiday Budget

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Now that the holiday season has come to a close, you are probably looking at your bank statements and credit card bills with wide eyes.

So, what can you do to get yourself back on track financially after the holidays? Here are three helpful tips to set your budget straight.

Sell, Sell, and Keep Selling

Declutter your house and see what you can sell. It’s one of the easiest ways to get rid of extra things you no longer use, plus make some cash after spending during the holiday season.

  1. First, find out which big items you can sell and then list those on sites like Craigslist, Facebook Marketplace, or various selling apps (Let go, etc.)
  2. Next, look through your closets for brand name clothing that can be sold on eBay, or apps like Poshmark and Mercari. This can really add up. As you go through your closet, snap pictures of the items you are planning to sell on your smartphone and upload them to the above mentioned apps. See how you do – if your items don’t sell in a few weeks, then put them aside to sell at your yearly yard sale in the warmer weather or make a local clothing bin donation.
  3. Lastly, request a bag from Thredup.com or Kindermint.com and pack them with clothes that your family doesn’t need. Most of the items that don’t sell in steps 1 and 2, will be hand-me-downs or 50-cent-finds, so after awhile if nothing is selling and you only get a couple dollars for your items – you are still coming out ahead.

Don’t Spend Money in January

Have you ever tried a month without spending money? The idea is that you cut unnecessary spending (eating out, home décor buys, clothes, and so on), and eat out of your pantry, fridge, and freezer for the entire month.

You are permitted to give yourself $20-40 a week to spend on milk, eggs, bread, and fruit/vegetables at the grocery store – but that’s it!

This is a great time to use up any food items that you may have around but forgot about. Plus, an extra $300 or more would be nice to put toward any credit card debt, or replenish your savings account – right?

Earn Additional Income

Does your job allow you to add overtime or do freelance work? If so, take advantage in January and February to help you pay down those holiday bills.

Be creative. Perhaps you can ask your employer for overtime opportunities, or take on a small baby/pet-sitting position. Even renting out your home or car, can produce extra income if you have the means to do so and live/commute another way.

Recovering from high spending like the holiday season can be tough, but with these steps you can overcome that blown budget relatively quickly and start off the new year on a better financial path.

Article Source:  Ashley Eneriz for Moneyning.com