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Tips for Smart Holiday Spending
The holiday season should be full of joy, not financial stress. With rising prices, online shopping risks, and endless sales competing for attention, it’s more important than ever to plan ahead and shop wisely. These smart holiday spending tips can help you stretch your budget, avoid debt, and still enjoy a memorable season.
Start Saving Early
Planning ahead is key to stress-free holiday shopping. Set aside small amounts throughout the year, or start as soon as possible, and consider opening a dedicated savings account for your holiday fund so you’re not tempted to dip into it. GNCU offers a variety of savings accounts that can help you keep your funds organized and earn interest while you save.
- Tip: Automate transfers from your checking to your holiday savings account to ensure you’re consistently setting money aside without thinking about it.
Start With a Holiday Budget
Before shopping begins, decide how much you can afford to spend. Make a list of everyone you want to buy for, and set a spending limit for each person. Don’t forget to factor in wrapping paper, shipping, holiday meals, and decorations. Those small costs can sneak up quickly.
- Tip: Use GNCU’s budgeting tools to track your spending and adjust as necessary throughout the holiday season.
Shop Early to Save More
Many retailers now start holiday sales weeks — even months — before Black Friday. Shopping early gives you more time to compare prices, track deals, and avoid last-minute overspending. Ordering ahead also helps you skip high shipping costs and ensures gifts arrive on time.
Compare Prices and Look for Deals
Use price-tracking apps, browser extensions, or retailer apps to see if you’re really getting the best price. Sign up for store newsletters to snag early access to discounts. Don’t forget to shop on days like Cyber Monday, Green Monday, or Small Business Saturday for special promotions.
Use Credit Wisely
Credit cards with rewards or cash back can help you save on purchases, but only if you pay off your balance quickly. Interest rates on credit cards are much higher than other financing options. If you know you’ll need more time to pay off your purchases, consider a lower-rate line of credit or a holiday loan.
Be Careful With Buy Now, Pay Later
Buy Now, Pay Later (BNPL) options can make gifts feel more affordable, but they’re not always the best long-term deal. Missing payments may lead to fees or even affect your credit. Always read the fine print and make sure the payment schedule fits your budget.
Pros:
- Immediate Access: You can take home your purchases without paying the full price upfront.
- Interest-Free (Sometimes): Many BNPL services offer interest-free payments if you repay within the promotional period.
- Flexible Payments: Payments are typically divided into four or more installments, making large purchases more manageable.
Cons:
- Risk of Overspending: BNPL encourages spending more than you would if paying upfront, leading to higher overall debt.
- Late Fees: If you miss a payment, hefty late fees and interest charges may apply, quickly making the purchase more expensive than it seemed.
- Rising Interest: Some BNPL loans charge interest rates similar to those of credit cards. Be sure to read the terms carefully before checkout.
- Impact on Credit: Some BNPL services report missed payments to credit bureaus, which could harm your credit score.
While BNPL loans may offer convenience, always weigh the terms and fees carefully before committing.
Give Thoughtful, Low-Cost Gifts
Holiday spending doesn’t have to mean overspending. Homemade gifts, baked treats, framed photos, or experiences like movie nights or family outings can be more meaningful than expensive gadgets. Shopping local also supports your community and often leads to one-of-a-kind finds.
Holiday Shopping Without Financial Stress
By saving early, setting a budget, and choosing the right financing options, you can enjoy the holiday season without the worry of financial strain. GNCU is here to help, offering a range of services and support to keep your holiday shopping on track.
