The most effective way to keep holiday expenses down

For many Americans this holiday season, juggling the desire to gift loved ones while worring about price hikes caused by endless inflation can be a difficult balancing act. It may seem In fact, about two in three Americans say they’re changing plans because of inflation, according to a new GOBankingRates survey.

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The survey also found that 33% of Americans plan to spend less than last year, while 30% plan to spend more than last year.

Additionally, 26% of Americans expect to spend $100 to $300 more on holiday shopping this year due to inflation, and 17% expect to spend $500 or more due to inflation. But there are ways to stretch the dollar and cut spending.

GOBankingRates spoke to several experts.

buy early

Our advice for keeping your spending down this holiday season is to start your holiday shopping early for a number of reasons.

“Early trades, early savings,” said Jolly Blake, financial advice expert at Albert, saying most retailers are aware of the inflation crisis, a result of people tightening their wallets for higher prices. , added that it is trying to dispose of excess inventory. price.

“As long as the economy remains as it is, this trend is likely to continue. You can know whether

Cecilia Seiden, vice president of retail operations at TransUnion, said many retailers are offering big discounts early in the season to clear excess inventory, and there are more discounts now than during peak holiday sales. We agreed with this sentiment stating that we might find a good deal.

“A longer shopping window also allows consumers to spread the cost of gifts and minimize the need to spend on expedited shipping,” she said.

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stick to budget

It’s easy to get carried away with over-buying and overspending, but one way to avoid this is to set a budget and stick to it.

“Set a budget and stick to it. Be mindful of how you spend your money and avoid expensive, unnecessary purchases. If possible, plan for upcoming holiday sale events such as Black Friday and Cyber ​​Monday. Please refrain,” said Jeanniey Walden, Chief Innovation and Marketing Officer at DailyPay. “Shop like a strategic, budget-conscious CEO. Collect coupons, search online sales and take pride in taking advantage of the best deals.”

Also, if your gift has a specific price target, stick to it. “What you don’t want to do is start the new year with heavy debt,” Blake said.

price tracking

To do this, you can set up monitors and alerts to track gift prices and flag deals that lead to big savings, said Seiden of TransUnion, Google Shopping, Honey We recommend tools such as web plugins, ShopSavvy, Camel Camel Camel. Make this easy. Plus, you can scan the best coupons and discount codes on the internet and apply them to your order.

This is also something you can do to cut back on your travel spending, especially this year as high gas prices and inflation impact airfares. I found out I was planning to.

“If travel is part of your vacation plans, try setting up price alerts to watch for price drops or price increases on the flights you want to buy,” says Albert’s Blake. “Skyscanner and Google Flights are great tools for tracking airfare. is not worth the risk, and if you’re not completely sure yet, it’s okay to see if the price fits within your budget.”

be creative

You can choose signature gifts for most people on your list to give everyone a slightly different version of the same thing.

“One example might be a small personalized canvas bag that you can order online. It’s easy, fast and painless for everyone. It means there’s less room to get off track, and you can see very clearly what your total costs will be,” said author of “Launching Financial Grownups” and personal finance expert at Tally. One CFP’s Bobbi Rebell said.

If you have the time and patience, you can also try DIY gifts.

“Pinterest and social media make it easier than ever to find inspiration for interesting DIY gifts that are accessible for all skill levels. They are all delicious and welcome as gifts,” said Seiden. Another option is to “go sentimental”.

“Photobooks, scrapbooks of memories, video tributes, and other sentimental gifts are often more meaningful and easier on the wallet than physical gifts.

Use the app and review policies and programs

Seiden recommends taking advantage of our post-purchase price adjustment policy.

“If the price of an item drops after purchase, many retailers will refund the difference between the purchase price and the current lower selling price, typically within 7 to 14 days of purchase. Nordstrom and Macy’s are examples of retailers with price adjustment policies,” she said.

She also points out that you shouldn’t “leave money on the table.” Consumers should make apps like Rakuten and Slick Deals part of their regular shopping routine. Rakuten’s cashback rewards can be as high as 10% or more for certain purchases, she added, and can really add up..

Rebell has another tip for cashback sites like Honey and Rakuten. Take a look at those sites and shop on days that offer double or triple cash back.

Learn more about GOBankingRates

Methodology: GOBankingRates surveyed 1,025 Americans ages 18 and older nationwide between October 17 and October 21, 2022, asking 18 different questions. (2) With current inflation, how much can we expect to spend on holiday shopping this year?; (3) Where is your favorite place to shop for the holidays?; (5) Where do you do most of your holiday shopping?; (6) Do you plan to work after retirement?; (8) How much do gifts for family usually cost?; (9) How much do gifts for friends usually cost?; Where have you noticed price increases? (select all that apply); (11) When did you start or plan to start holiday shopping this year?; (13) How much are you planning to spend on gifts only this holiday season?; (14) How much are you planning to spend on vacation travel?; (15) Who are you spending the holidays on? Do you tip?; (16) Do you tip service workers (food delivery, Uber, hairdressers, etc.) extra when you are on vacation?; (17) What is your primary method of payment for holiday expenses? (18) What kind of holiday shopping do you do at 100 yen shops? (Select all that apply). GOBankingRates conducted the research using PureSpectrum’s research platform.