November 19, 2024
It’s hard to believe, but the holiday season is just around the corner.
Rising costs and inflation remained the top driver of increased spending by regional residents in 2024 (69%), according to a WSFS Bank Money Trends survey. In a year filled with continued economic pressures, it is vital to get an early start and have a plan in place to ensure you can spend your holidays focusing on what is most important to you.
Here are tips to help you stay on budget.
Before you hit the store or your favorite online shopping site, start by reviewing your list and spending from last year to get an idea of what purchases you need to make and a starting point for your budget. From there, build your list for this year and put a budget in place for how much you plan to spend on each gift and in total.
Having a list and budget in place can avoid the urge to make impulse purchases, which can quickly lead to overspending.
Holiday cards are another added expense for many consumers this time of year. If your budget is tight, consider paring down your list or opting for a digital holiday card.
And remember, your list should include more than just the gifts you want to purchase. Factor in expenses like travel, food and decorations to help you prioritize needs vs. wants.
The WSFS survey found 33% said they’re cutting back on non-essential spending. With this in mind, it is important to look for additional areas to save during the holidays.
The earlier you get started, the more time you have to search for deals, including key shopping days like Black Friday and Cyber Monday. Try to group your online purchases together to qualify for free shipping or search for a retailer already offering it for the season. Remember in your hunt for bargains, however, that if a deal seems too good to be true, it likely is and could be a scam.
Shopping at your local small businesses can also be a way to save on shipping vs. online shopping, while also providing the opportunity to find unique gifts and support your community.
If your budget is still tight, consider opting for more creative or homemade gifts for some of your loved ones. Planning a volunteer outing together is another great way to connect and enjoy the holiday spirit while helping to support those who may be less fortunate.
Use your online and mobile banking apps to keep track of your expenses in real-time to avoid overspending. Setting spending limits and alerts for your cards can also be helpful for staying on budget and enables you to more closely track where your cards are being used.
The WSFS survey found 44% are using their debit card more often this year, 36% using cash, 35% using their credit card, and 35% using buy-now-pay-later (BNPL) platforms more often. Using cash or your debit card for purchases is another method that can help consumers stay on budget and think twice before making a purchase.
If you prefer to use your credit card or a BNPL service, it is important to keep close track of your debt and pay off your balances in full each month, whenever possible, to avoid accruing interest and increasing the true cost of your purchase. Thirty-five percent who use multiple BNPL services agree that they have lost track of what they owe, according to the WSFS survey, underscoring the importance of having a handle on your various debt.
If you’ve built up credit card rewards over time, now could also be an opportune time to cash those in to help offset your holiday expenses.
The holiday season is time for joy and togetherness. With the right plan in place, you can keep your holiday spending on budget and be able to spend your time on the things that are most important to you.
The survey was conducted by research company Opinium. The sample includes 1,000 respondents in the Greater Philadelphia and Delaware region who reside in five southeastern Pennsylvania counties (Bucks, Chester, Delaware, Montgomery and Philadelphia), four southern New Jersey counties (Atlantic, Burlington, Camden and Gloucester), and all three Delaware counties (Kent, Sussex and New Castle). All respondents were ages 18-55. The online survey was conducted from August 23-September 5, 2024, with a margin of error of +/- 3 percent.
