By Stephen Fournier – KeyBank Central New York Market President
If you’re concerned about spending a lot over the holidays, you’re not alone. According to the National Retail Federation, consumers plan to spend a total of $1,048 on average for items such as decorations, food and gifts as well as other purchases for themselves and their families.
While it’s challenging enough to stay within your budget amid all of the killer holiday and end-of-year deals, feeling the pressure to buy the perfect gift for everyone on your list makes it even more difficult. Here’s how you can find the best last-minute finds and stay within budget:
Use personal finance management tools
Every individual’s circumstances are unique. Unfortunately, traditional personal finance management tools don’t have the flexibility to give users personalized assessments and recommendations. For example, digital tools help banking customers improve their financial wellness by creating highly personalized plans that allow them to set financial goals, track spending and keep track of savings. These tools are particularly helpful during holiday seasons when spending can derail even the most carefully designed budget.
Account alerts are another helpful tool. They can let you know when you exceed your spending budget or when your accounts hit a certain level so that you know when to say “when” instead of continuing to shop. At the very least, you will know that you’re at your limit, which will make you think twice about some purchases. Alerts can be sent via text message or email.
Stack Your Savings
Besides finding a great end-of-year deal, stack your savings by using a coupon on top of the discount. Then, use a credit card to score cash back rewards or reward points that can be used for gift cards or merchandise. This will help you save even more. Remember that just because an item is already on sale doesn’t mean you can’t use a discount code or coupon to get an even better deal.
Another thing to consider is an automatic saving programs which automatically transfers money to your savings account every time you make a purchase with your debit card, so you can effortlessly set aside money to pay down debt.
Stick to Your List
To stay under budget, stick to your list of giftees, and get detailed with how much you’ll be spending on each person. Besides listing specific items to gift, think of general interests and categories to explore — your aunt may be really into hedgehogs or your cousin may be a huge fan of a popular TV show — that will make it easier to find something at a discount.
Shop at Brick-and-Mortar Stores
Because stores are eager to get rid of their inventory, you’re more likely to find marked-down items by stepping inside a store. If you’re going the brick-and-mortar route and want to avoid running around town looking for the best deals, stick to just a few major retailers to do the majority of your shopping. To save time, you can also check to see if a particular item is in stock, and then reserve it, online.
Look for Free Standard Shipping
You can find free standard shipping deals from online retailers. While this depends on just how last minute your shopping is, you might also be able to take advantage of a free trial that includes standard shipping. You can also save on shipping by having items sent directly to those on your gift list. Or, have your gifts shipped to someone other than the giftee and ask a helper elf to assist in the gift wrapping. Don’t forget to ship in the fewest batches possible.
Lower Your Gift Per Budget
If you’re cutting it pretty close to your holiday budget, consider lowering the amount you originally allocated for certain people on your list. Then get creative by finding items to meet that budget. To maximize deals, you could snag several smaller gifts at a discount, then bundle them together during shipping.
Combine Gifts
You might also want to reassess if you need to buy gifts for every single person on your list. For instance, instead of buying something for every coworker in your department, consider buying something everyone can enjoy such as an assortment of baked goodies. If you’re shopping for entire families, think of getting a single gift for couples or donate to a charity on behalf of a family.
As far as holiday shopping goes, it’s definitely possible to get everything done on time and under budget. All it takes is being savvy with how and where you spend your hard-earned dollars during this stressful time of year.
About the author: Stephen Fournier is President of KeyBank’s Central New York Market. He may be reached at either 315-470-5096 or [email protected].
Year-End Financial To-Dos
While it seems like 2019 started just yesterday, we’re already preparing to ring in another new year. Here are three things to check on before the year ends
Consider Your Charitable Giving Strategy
As you review your assets and overall financial picture, consider your charitable giving strategy for the current tax year.
Be sure to update your financial advisor on any donations or in-kind gifts you’ve made to date. This will help them assess where you might be able to take advantage of tax benefits for additional giving by the end of the year. You can also work with your advisor to ensure that your overall estate plan is on track with your charitable gifts and contributions to any family foundations or trusts you’ve established.
Assess Your Retirement Planning
If you’re still working, a year-end review is an ideal time to determine how much you can still contribute to your qualified retirement accounts. Make sure to review all IRAs and employer-sponsored plans, such as Simplified Employee Pension (SEP) IRAs, solo 401(k)s, 401(k)s, and 403(b)s.
If you’re 70 1/2 or older and/or if you’re retired, be sure to also check in with your advisor about any required minimum distributions that should be considered for the calendar year. If you’re close to 70 1/2, the IRS will require you to start taking annual distributions from your retirement accounts.
Review Your Medical Savings Accounts
Your flexible spending and health savings accounts (HSAs) have annual contribution limits, and they may also have “use it or lose it” provisions. Check your contributions year to date and make sure you’re on track to max them out or use up your benefits by the end of the year. Don’t forget that your HSA could potentially be an essential component of your overall retirement planning strategy.
