The holidays may be more expensive than you expect. The Gallup organization found in its survey that, on average, Americans will spend $1,014 on gifts this season. That’s about $80 more than in 2023. Which group are you in, the same as last year (52%), more (20%) or less (25%)?
People will be spending more on holiday travel this year, with millennials and GenZ members leading the increases by 12% and 42%, respectively, according to a PwC survey. Just how much depends on whether they drive or fly. If you’re among the 45% of holiday travelers who plan to fly, you’ll be watching your finances, too.
Here’s how to make this holiday season more joyous by saving money:
- Create a Detailed Holiday Budget
Start by determining how much you can afford to spend overall on holiday expenses, including gifts, travel, food, and decorations. Break this budget down into specific categories to track spending. For gifts, create sub-groups such as family, friends and business. Divide long-distance travel into airfare, hotel, meals and entertainment.
- Set Spending Limits for Gifts
Make a list of everyone you plan to buy gifts to and assign a dollar amount next to each name. This helps prevent overspending and keeps your gift-giving within your budget. Not sure what amount to assign to each person? Shop their item online to get a ballpark figure and maybe find a bargain in the process.
- Shop Early
Begin shopping as early as possible to take advantage of sales and avoid last-minute impulse purchases. Some retailers promote discounts for purchases made before a specific date. For example, an online site could offer 10% off for orders placed before Dec. 1. Early shopping also allows you to spread out your spending over several months, reducing the strain on your budget.
- Watch for flash sales
For instance, announce a one-day sale with significant discounts on select items. This tactic can drive quick sales and keep customers engaged.
- Look for VIP Exclusive Offers
Does the retailer offer special promotions to its most loyal customers, such as early access to sales or unique discounts on new holiday collections? If so, sign up for its newsletter, which will alert you. You can unsubscribe after the holidays.
- Use Price-comparison Tools
Before purchasing, use your phone or online tools to compare prices across different retailers. Many stores will match a competitor’s price, which can help you secure the best deals.
- Consider Homemade Gifts and Experiences
Instead of buying expensive gifts, consider creating homemade items or planning experiences that can be shared with loved ones. This will save money and add a personal touch to your gifts.
- Plan for Travel Expenses
Before traveling during the holidays, outline all potential costs, including transportation, lodging, and daily expenses like meals and activities. Consider using public transport or budget accommodations to save money.
- Track Your Spending
Update your budget as you shop and travel. Are you over or under on a line item? Make the task easier with budgeting apps or spreadsheets to monitor to help you stay accountable.
When shopping, pay yourself with Tropical Financial’s Daily Rewards Debit card. Each purchase earns you 2 cents, credited the next day to your checking. The longer your gift list, the more you’ll put back in your pocket.
