Tis the season for holiday spending. Retail sales typically increase during the fourth quarter of the year due to seasonal holiday shopping. If you expect to spend more during the holiday season, are you financially prepared? As holiday shopping may only happen toward the end of the year, do you save up in advance or borrow to cover the extra costs and pay it off later? With the increasing trend of buy now pay later, spending on credit can be readily accessible when shopping online. Focus on your financial wellness by setting a savings goal for your seasonal shopping next year and creating a spending plan to stay on track.
Sometimes simple tools can help with planning your spending and saving. Setting and writing down personal goals is known to be linked to goal achievement. Create a savings goal to work toward over the next year to help with any additional spending in the last quarter of the year. Think about any additional meal costs, travel costs, gifting, and other expenses that arise at year-end. Track your spending now to get an idea of how much you need to plan for spending next year.
While the holidays may feel like a season of spending, there is never a bad time to start thinking about saving. If you do not have enough money to buy everything you need or want, how can you plan to be ready for next year? Decide how much you need, when you need it (possibly October or November next year), and how much you should set aside each month or each paycheck to achieve this goal. If you were not prepared for this year, consider some debt-free gifting ideas discussed in an article from last year. Then start thinking about what you can do to prepare for next year:
- Decide how much you need
- Write down your goal
- Plan for how to reach your goal
- Start saving toward your goal
Buying on credit can cost you more than saving in advance and planning your spending. Save up throughout the year to avoid ending the year with debt. Make saving a priority in your financial wellness plan throughout the year so you can feel comfortable spending during the holiday season.
References
Mahlandt, J. (December 13, 2024). Debt-free holiday gifting. Finding Financial Balance - University of Illinois Extension.
Schippers M. C., Morisano D., Locke E. A., Scheepers W. A., Latham G. P., de Jong E. M. (2020). Writing about personal goals and plans regardless of goal type boosts academic performance. Contemporary Educational Psychology, 60, 1010.
United States Census. (November 15, 2024). Monthly retail trade - sales report. Census.gov