November ushers in the official holiday shopping season, and Arvest Bank is sharing tips to help shoppers get the most out of their shopping budgets.
The National Retail Federation expects 2024 holiday spending to grow between 2.5% and 3.5%from last year, which equates to nearly $989 billion in expected holiday spending. At the same time, a recent holiday spending report from NerdWallet shows that 28% of holiday shoppers who used credit cards last year are still paying off those purchases.
“It’s easy to find yourself using a credit card more during the holidays, especially if you’re wanting to take advantage of a rewards program or additional discounts,” said Jeannette Pham, Sales Coordinator with Arvest Bank – Fort Smith Region. “Whether you’re using cash or a credit card, creating a budget is key to not overspending and could reduce additional stress during the holiday season.”
Pham shares these tips to help shoppers spend wisely.
Create a Budget Per Person
While you may create an overall budget for gifts, plan out who you’re buying gifts for and set a budget for each person. For example, you might get your parents a large, joint gift but buy separate, smaller gifts for friends or siblings.
Start Shopping Early to Find Deals
With shipping delays and other issues, there’s no time like the present to start choosing and buying holiday gifts. Some retail companies offer premium subscriptions that give you access to fast, free shipping along with special deals and early access to sales. Many retailers also offer sales leading up to Black Friday and the holidays, so keep an eye out for and take advantage of those sales.
Compare Prices Before Making a Final Purchase
If you’ve started early, then you have time to compare prices before you make the purchase. Many online retailers have price comparison apps to help you find the best deals. Google also allows you to track the price of items over time. Also, don’t be afraid to ask for a price match.
Take a Break if You Start Browsing for Yourself
When seeking out deals, it can be tempting to find something you want for yourself. Remember to stick to your list. If you feel tempted to add something for yourself to your cart, take a break from shopping, whether it’s stepping out of the store, setting your phone or tablet down or closing your laptop.
Stay Alert for Fraud
Avoid fraud by monitoring your purchases frequently, only using secure websites when shopping online and setting up alerts so you know when purchases are made using your credit or debit card. Many financial institutions offer fraud protection programs. At Arvest, we offer ID Protect with certain account types for an added layer of protection. Using a credit card instead of your debit card can also be a good way to protect your bank accounts during your holiday shopping.
Keep an Eye on Your Credit Card Spending
If you’re using a credit card along with money from your checking or savings account, don’t forget to include it as part of your spending budget. Here are some other credit card tips to consider:
● Use a separate credit card outside of your normal card and set an alert to notify you when you hit a certain balance.● Consider budgeting to pay off your credit card balance so you avoid paying interest.● Make payments on time to avoid late fees and keep any introductory rates.
It’s Not Too Early to Plan for 2025
You might want to start planning for 2025 now. Setting up a recurring, automatic transfer from your checking account to your savings account is one of the easiest ways to do this. You can also set the transfer amount and frequency (monthly, weekly, or per pay period).
