Black Friday Finances: How to Avoid Overspending This Holiday Season
SIOUX FALLS, S.D.- How much are you spending this holiday season? According to the National Retail Federation, consumers will spend on average over $1,000 shopping this holiday season. That’s 4 percent more than last year.
It’s the season for deals and according to Christina Lynn with Lynn Financial, this will be a good year for shoppers as the economy is strong.
“Consumer confidence is high right now which is really exciting going into the holiday season because when people are more comfortable with where their money is at, they’re going to be spending more money on Christmas,” said Lynn.
However, before you head to the stores, she says it’s important to think about your finances. With company marketing and the ease of online shopping, she says it can be easy to overspend.
“And then come January 1st, they’re feeling a bit of panic or guilt about how much they spent,” said Lynn.
She says it’s important to plan ahead to avoid impulse buys.
“Don’t just get a shopping cart and start putting all the deals that seem too good to be true into your cart because you probably won’t really want those things. You should be planning out exactly the pieces, the gifts that you think will make your loved ones happy.”
Lynn says Thanksgiving is a good time to discuss a spending limit with your family.
“So that nobody feels embarrassed or awkward when presents are being open and one person spends more than the other,” said Lynn.
Then create a spending plan. Write down each gift you plan to buy and it’s cost. That way you’ll have an idea of the total amount of money you’ll be spending on gifts.
“And include things like ‘are you going to buy christmas cards, are you going to be participating in you know buying food for the family dinner?’ Things like that.”>[Duration:0:08]
That way you have less stress this holiday season.
Lynn says if you’re going over budget this season offer services instead of material gifts. Think about something your good at such as gardening or snow shoveling and offer that to your friends or family instead.