Tips to Stay On Track with Spending This Holiday Season

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The 2022 holiday shopping season is upon us. High inflation rates, increased prices for consumer goods and increased online scam activity are already throwing a wrench into holiday shopping.

According to the National Retail Federation’s (NRF) latest forecast, holiday sales are expected to surpass 2021 sales, including online and other non-store sales. With increased spending projected, consumers will likely start shopping earlier or turn to alternative payment strategies to buy gifts.

So how can you prepare for this environment of increased cost, spending, and scams? Here are some things you can do to get ready for holiday shopping:

1. Revisit how much you spent last year: Knowing how much you spent on gifts, travel, and celebrations last year can help give you a guideline for what you can spend this year.
2. Make a list of gift recipients: Having a list of who you are buying gifts for will help you keep a close eye on how much you’re spending and on who. The list can help you stay on track and not make impulse purchases.
3. Decide how you plan to celebrate: Whether you have a small family gathering or a family vacation abroad can significantly change how much you’ll need to put aside for travel. The best advice is to make your decision early in order to avoid paying steep last-minute prices for travel.
4. Create a holiday budget: A budget allocates the money you want to spend on gifts, travel, etc. and provides guidance to keep you on track with your financial goals. Ideally, you’ve saved for holiday spending through the year, but if not, a budget can help you keep spending inline with what you can afford.
5. Take advantage of sales: Black Friday, Cyber Monday and Small Business Saturday are annual events where you can take advantage of discounted pricing on goods. Many retailers have kicked off Black Friday sales early, so be on the lookout for those to get the best price.
6. Be careful purchasing sought-after products: The risk of online purchase scams rises during the holidays because more people are making online purchases, and scammers offer the most popular products for the season at seemingly “great” prices.
7. Use secure and traceable transactions and payment methods: Consumers who pay with a credit card are less likely to lose money. Be cautious when paying by digital wallet apps, prepaid money cards, or other non-traditional payment methods.

If you have questions about setting up holiday savings accounts, digital wallets, or ways you can set up your banking account to monitor for fraud, please feel free to contact our West Gate Bank Bellevue branch and talk with our team.