It's Halloween, So Let's Talk Christmas Shopping! - Genisys® Credit Union

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It's Halloween, So Let's Talk Christmas Shopping!

on 10/29/2019

Woman Smiling with Shopping Bags

The leaves have changed, the weather is getting cooler, what does this all mean? It’s time to start thinking about Christmas.

Some of you are reading this on your phone while waiting in line at Starbucks to buy a Pumpkin Spice Latte, but it’s time to start thinking of peppermint mochas instead.  

Even if you’re the “Bah, Humbug” type of person, making financial plans for the holiday is still a good idea. Below are answers to questions that you might be contemplating this holiday season.

How Much Will I Spend This Holiday Season? 

Americans spent nearly $721 billion during the 2018 holiday season. This includes decorations, hams, ugly sweaters, travel and everything else needed. That’s a lot of money! According to the National Retail Federation, this is the most we’ve spent on holiday gifts so far. 

Decide on a realistic budget now and start setting aside the funds needed to ensure you don’t overspend during the holidays. Make a list of the expenses for gifts and be realistic on what you can and can’t afford. Then, allocate specific amounts within your budget, for example, $300 towards your daughters gifts and $100 for your siblings. Again, make sure the numbers work within your budget.

Why Are We Talking About This Now? It’s only Halloween!

Halloween is exactly why we should make plans now. American spending on Halloween has spiked. Last year, we spent about $9 billion on Halloween, including $480 million on costumes for our pets! But who can resist dressing their pup in a taco costume? It’s easy to overspend in October and let that lead into an indulgent Thanksgiving in November. When that happens, we find ourselves putting all our Christmas spending onto a high-interest-rate credit card. That will for sure land you on the naughty list!

Planning ahead is a necessary step to prevent you from a holiday hangover in the New Year.

Is It Bad To Put Christmas On A Credit Card?

The answer is a definite, “it depends.” It’s never a good idea to rack up debt, if you have a poor track record of paying down credit card bills and digging yourself deeper in the hole. It will cost you about $200 per month to pay off an average Christmas debt in time for next year if you are using a typical high-interest credit card, especially those store credit cards offered so often at this time of year.

And if you don’t pay it off by next year, you’re suddenly trying to pay off two holidays at once.  That’s bad news. Even if you think you can handle the extra debt load, is it worth the extra monthly bill? On top of all that, paying around $400 in interest charges and fees over the course of the year is still $400 you could have kept in your account.

Is It Too Late To Get Ahead For This Year?

Not at all. You have a lot of options to save yourself from your own spending. You can sign up for a Holiday Savings account, or a money market account. If you do plan on putting some holiday spending on a credit card, or applying for a personal loan to help with your presents, be sure you are using a low-interest credit card or loan, and have a plan to get them paid off before the next holiday.

Remember that holiday spending doesn’t have to be an all-or-nothing proposition. You can combine savings, credit cards and budgeting to attack the holiday from several angles. Start now and by Christmas you’ll have a variety of options to keep your holiday budget on track.

The bottom line: If you start planning ahead, you can keep your holiday spending from being an obstacle to your financial future. For more information about setting up a holiday savings account or questions about other savings options, contact us today. 


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