00:00 Speaker A
And an overall higher cost of living is putting pressure on consumers’s wallets with rising prices and tariffs putting a damper on this holiday shopping season. So what can shoppers do to prepare? Yahoo Finances Casey Bond joined us now with the details. Casey, let’s start broad here. How are consumers looking at spending this holiday season?
00:18 Casey Bond
Well, like you mentioned, prices are really inflated this year. Um, so a few surveys have shown that people are actually dialing back their spending a bit, but that doesn’t mean that they’re not spending at all. Um, the average consumer is looking at just over $700 for their holiday expenses. Um, so that’s a significant amount. and unfortunately, a lot of people are planning to rely on their credit cards to cover those costs, which, you know, most experts recommend avoiding at all costs because you don’t want to start the new year off already in the red.
00:50 Speaker A
Casey, guilty as charged because it is so easy to get carried away with all these sales and promotions that we’re seeing right now. So how should consumers keep their budget in check this holiday season? And for those who maybe got ahead and started early, was that the right move? Is it already too late to start now?
01:06 Casey Bond
Well, the good news is, it’s never too early to start when it comes to planning for holiday expenses. Um, especially in light of these elevated costs, starting early gives you a chance to get your budget in order, do some comparison shopping, hunt down those promo codes and and deals. And, um, in the case of retailers that offer price match guarantees, even if you did find something early on and then come across, you know, a better price later,
01:31 Casey Bond
those retailers will match the price, um, you know, given that it qualifies and then you can knock down some of that cost there. Um, now is also a really good time to do a budget audit. Um, so look at your spending and areas where you can afford to cut back even if it’s just temporarily. Then, you know, every week, every time you get paid, take some of that money and set it aside in a sinking fund, which is essentially a savings account for one-off expenses that aren’t part of your regular budget.
01:54 Casey Bond
And ideally, put that money in a high yield savings account so that it’s earning a good amount of interest while it’s sitting in the bank waiting for you to use it.
02:04 Speaker A
Casey, these are are great tips. But let’s say that you see something you like, how can you give your your budget some breathing room there?
02:12 Casey Bond
Well, one option that’s great if you have the time and energy is actually to pick up a seasonal side gig. Right now, retailers are hiring extra seasonal workers to help with the holiday rush. So, if you have a, you know, a retailer that you love, consider taking some shifts with them or providing services that are really in high demand this time of year, like grocery delivery, um, gift wrapping, even making handmade goods, um, you know, as gifts. Taking on a few extra hours a week are going to help pad your budget, um, and avoid you having to rely on credit cards or dipping into your savings when you are doing that shopping.
02:46 Speaker A
Casey, everyone I’m talking to right now, whether it be executives or even just my everyday friends, we’re all looking to save money. And so what are some opportunities to save money overall?
02:56 Casey Bond
Sure. Well, there are a lot of creative ways to save money during the holiday season. One that’s really effective, honestly, is just whittling down that gift recipient list. Um, you know, if you have a large friend group or you have an extended family, buying gifts for every single one of those people gets really expensive. So consider asking them to do a gift exchange instead, where everyone pulls a name and then you can spend more time picking out a really thoughtful gift for that one person and saving a lot of money in the process.
03:19 Casey Bond
Um, another thing to look at is your credit card rewards. So, studies show that lots of people actually have rewards sitting in their accounts going unused. Um, but those can go a really long way toward offsetting your holiday costs, whether that’s, you know, shopping and getting that statement credit back, um, against your balance, or, you know, even using travel rewards to offset travel costs. So, if you do have a rewards card, make sure you log into your account and double check that, um, you know, you don’t have rewards that are just sitting there and not being used.
03:49 Speaker A
Casey Bond, thank you so much for joining us and happy holidays to you.
03:52 Casey Bond
Thank you.
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