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It wouldn’t be a surprise if some national news organization or a dictionary company declared “inflation” the word of the year.
Everything from the price of your holiday meal to shipping rates for your gifts will be more expensive than last year and the year before.
Even when inflation isn’t so high, it’s easy to overspend in the holiday season. To avoid getting a stress headache when you open that VISA bill in January, here are some tips on how to stick to a reasonable budget for this year’s holiday gifts.
Advance Research Is Your Friend
In terms of both getting a great gift and not spending too much on it, planning ahead will be very helpful. When you’re making your list of what you plan to buy for various people, add a column to that list and budget the maximum amount you want to spend on each item.
Then, compare prices before you go to the store or click ‘buy’ online. If you’re planning to buy things on Black Friday or Cyber Monday, look up prices online or from your favorite local stores in early November. Some businesses may raise prices the week before Thanksgiving just to make Black Friday deals look better than they really are, and tracking prices is one way to make educated decisions.
How to Pay for It
Be careful with those credit cards. It’s better to pay for presents with money you have saved up than it is to rack up more debt. (But try to avoid raiding your retirement account!)
While it may not help you this season, it’s a good idea to set up a holiday savings account at the beginning of 2023 and set up an automatic transfer of a small amount of every paycheck to that account. That way, you’ll have money saved up to spend on presents next holiday season.
If you do choose to use a credit card, look at the terms and conditions of your cards closely. Some offer cash back on purchases, some offer automatic discounts, and some offer rebates or rewards at certain stores.
Go to each credit card’s website and see what offers and deals are available so you know which card to use for each purchase.
Go Homemade
Is there something you’re really good at? Whether its knitting or another artistic endeavor, consider crafting something for your loved ones this year. If you’re not particularly crafty, framing a favorite photo or making candy at home can make an appreciated holiday gift for friends or family. If you still want to buy some-thing, you can make it a smaller gift when you supplement it with something homemade.
5 Tips to Avoid Costly Holiday Scams
The top rule to remember this holiday season: If it sounds too good to be true, it probably is! Listen to your gut, always, when you're looking for deals.
• Shopping online? Look for the SSL certificate. When you're on a secure website, you'll see a small lock icon in the address bar or the website will start with https.
• Be careful clicking on links in email. If a company is offering a coupon or promotion, it's probably also on their website. Instead of clicking on the link, go to the company's website and shop from there.
• Sometimes an email you receive making you aware of a"problem with your delivery" or asking for an extra fee for expedited shipping is actually a scam. If you aren't sure, pick up the phone and call the company you bought the item from to check with them first.
• Avoid purchases from businesses that only accept a cash, check or money order. It's more likely that getting your money back will be difficult or impossible.
• It's safer to pay with a credit card than it is to pay with a cash app like Venmo. Only use cash apps to pay people you already know and trust.
