Holiday shopping tips to make your wallet smile

Smith

The holiday season is just around the corner, and we are about to enjoy what is, at least to me, the most wonderful time of the year. This year, however, it is going to be a little bit different because of one factor: inflation.

Inflation is surging worldwide, and the U.S. is experiencing a nearly 40-year high, meaning more Middle Tennesseans will likely be cutting back on how much they spend this holiday season. A recent survey by ShipStation, a leading ecommerce order management and shipping software company, found that 58% of U.S. consumers plan to spend less this year.

In the spirit of giving and being good financial stewards, here are five tips to make sure the inflation Grinch does not dampen your holiday spirit:

Make a list and check it twice

When starting your holiday shopping list, begin the process by focusing on the people to whom you want to show your love and appreciation. You can divide the list into categories – family, close friends, work colleagues, neighbors, teachers or people who have really helped you or your family this year – as a way to help guide your spending.

Set a holiday spending plan and stick to it

Setting a holiday spending plan can be stressful because we want to shower our loved ones with great gifts. But remember, these days practically everyone is feeling the sting of inflation. Your family and friends will certainly understand if you are watching your pennies this year. Credit unions like Ascend often offer free online budgeting resources to members.

When creating your budget, follow this rule: Do not go into debt when buying gifts by using a credit card irresponsibly. Often, store credit cards or buy-now-pay-later services have high interest rates that make paying off the debt more challenging.

If you need extra help this holiday season, consider small personal loans which offer competitive interest rates and allow you to choose a payment schedule, term and loan amount you’re comfortable with.

Some of the best gifts do not cost a penny

We all have probably heard the saying, “The best things in life are free.” I agree. Some of the best “gifts” I have received over the years did not cost anything, or at the most only a few dollars. This year, consider free or low-cost gifts, such as baked goods, a book from your library, framed photographs or an offer to babysit, clean or help with errands.

If someone offered to clean our home or mow our lawn for free, I would shower that person with love and affection.

Do not rule out giving pre-owned gifts

Giving pre-owned gifts is a great way to stretch your holiday shopping budget. You can find quality pre-owned gifts that are nearly as good as new and the recipient will be elated because they are receiving something they want or need. Gifts that are ideal options to buy second-hand include sports equipment, books, vintage clothing or furniture, hand or power tools and certain kitchenware (like pots, pans and baking dishes).

Follow the “four gift” rule

Several years ago, something called the “four gift” rule began trending on social media to make gift-giving more meaningful. The basic tenet is that rather than buy presents that may not last more than a month or two or are stored in a closet and never see the light of day again, each person receives a gift that is: 1.) something they want, 2.) something they need, 3.) something they wear, and 4.) something they read.

The four-gift rule now has a permanent place in our family. It allows my husband and I to splurge on certain gifts, but also give our children something that will help them in their personal growth.

I realize all of us are getting a little tired of reading or watching news stories about inflation, but it is hard to ignore. It affects our bank account every time we go to the grocery store, fill up the gas tank or buy necessities for our home and children.

These five tips will help you keep more of your hard-earned money, but also allow you to express your appreciation to the people who are making your life richer.

Quentrece Smith is senior assistant vice president, branch delivery at Ascend Federal Credit Union.