MAKING ENDS MEET: How to master holiday shopping and avoid a financial frenzy

If you’re already dreaming of Halloween or Thanksgiving feasts, brace yourself… it’s time to start thinking about holiday shopping.

Whether you’re decking the halls for December or just envisioning snowflakes and snowmen, planning ahead can help you avoid a festive financial frenzy.

Before you get swept up in buying every gift your heart desires, remember making a list, checking it twice, and shopping early can save you time and money.

“I’ll say I haven’t really thought about it but then when I saw a shirt that was perfect… I can get that for my sister now and get a leg up,” said Chattanooga Market shopper, Emily Jacobs.

“I’m definitely going to start a list now because early shopping is the way to go,” said Chattanooga Market shopper, Michelle Zellner.

Some savvy shoppers at the Chattanooga Market are already discovering unique gifts months in advance. But, as many can relate, resisting the urge to procrastinate is easier said than done.

“Maybe October, November…,” said Chattanooga Market shopper, Annamarie Herbal. 

“Usually a mid December girl,” chuckled Jacobs.

According to national reports, the average American was expected to spend $975 on gifts in 2023, a significant rise from $616 in 2007.

“So procrastinating until December… you’re just going to have more stress when it’s time to do that, maybe the gifts aren’t as good because you didn’t have time to think them out, spending more money than you planned,” said Bailey Howard, Wealth Advisor for HHM Wealth Advisors. 

Howard says sticking to a budget is his first piece of advice for clients.

“I understand how tricky those things can be, like it looks great on paper but if you don’t follow it, it doesn’t mean anything,” said Howard.

Howard recommends saving throughout the year by cutting extra expenses, and setting aside money with each paycheck.

“Well don’t put that in your savings account or your checking’s account because you’re going to use it,” said Howard.

To effectively save up he says to open a separate account specific for holiday spending.

For an extra financial boost Howard suggests investing in a certificate of deposit or money market account to earn interest on your savings.

“Maybe you start in January, you’re putting back a $100 a month, and whenever it comes time to purchase your gift you can take it out of there and you’ll have a little bit more than you were expecting,” said Howard.

If you’re leaning towards using a credit card, keep in mind that in 2022, the average holiday debt was over $1,500.

“So if you do put stuff on credit cards or payment plans or what ever the case is, making sure that you have a time line of when you can get that paid off,” said Howard.

Here are Howard’s top three festive tips for frugal shoppers:

• First, plan ahead, set a budget and stick to it.
• Second, find the best deals, compare prices and hunt for sales.
• And lastly, save for the future, open a 529 education savings account for kids or grandkids. What’s better than a gift that grows?

“You put $200 in there when they’re 2 years old, and if you’re in the right companies and the right sectors, that can be a $5,000 gift by the time they’re 18 and ready to go to college, and that goes a lot farther than a Playstation or something that you would get somebody,” said Howard.

“And stick to your budget, you have to stick to your budget, it’s easy to go over if you’re not careful,” said Chattanooga Market shopper, Alice Petty. 

So, whether you’re a jolly early bird or a last-minute shopper… with a little planning and some holiday cheer, you can make this season both merry and bright without breaking the bank.