Too soon for pumpkin spice and holiday shopping?

The holiday season is a magical time, but it can also be financially stressful. According to a recent Bankrate survey, 50% of holiday shoppers are planning to start their holiday shopping before Halloween. This early start may seem surprising, but it’s a strategic move to alleviate the financial burden that often accompanies the festivities. In this article, we’ll explore the key findings from the survey and provide expert tips on how to avoid overspending and stress during the holiday season.

Holiday Shopping Trends

Half of Holiday Shoppers Plan to Start by Halloween

Starting holiday shopping before Halloween might sound unconventional, but it’s a wise decision. According to the Bankrate survey, nearly 50% of holiday shoppers intend to kick off their shopping spree in October or even earlier. This early start allows them to distribute their expenses over several months, reducing the financial strain that often hits in December.

Shopping before Halloween may also help secure the best deals and avoid the frenzy of last-minute shopping. Bankrate Senior Industry Analyst Ted Rossman advises, “Use time to your advantage so that you can set a good budget and comparison shop for the best deals.”

Credit Cards Dominate Payment Methods

More than half of holiday shoppers, precisely 53%, plan to use credit cards for at least some of their holiday purchases this year. However, the majority of them (64%) are committed to paying off their credit card bills in full before interest starts accruing.

While credit cards offer convenience and rewards, it’s essential to manage them wisely to avoid hefty interest charges. Rossman reminds us that credit card interest can add up, costing you more than you bargained for if not paid off promptly.

Inflation Concerns Diminished but Financial Stress Persists

Inflation was a significant concern for holiday shoppers in 2022, with 40% expressing worries about its impact on their holiday spending. However, as inflation rates have decreased, only 33% of shoppers are currently concerned about its influence on their holiday budgets.

Nonetheless, 40% of holiday shoppers still expect to feel financially burdened during the upcoming holiday season. This stress manifests in various forms, with 25% worrying about overall costs, 23% fearing budget strain, and 13% feeling pressured to overspend.

Online Shopping Reigns Supreme

The survey also indicates a significant shift toward online shopping, with 39% of holiday shoppers planning to make most of their purchases online. This trend transcends generations, with older age groups increasingly embracing online shopping for its convenience and accessibility.

Smart Strategies for a Stress-Free Holiday Season

Taking Frugal Steps to Save Money

No matter the financial concerns, 87% of holiday shoppers plan to take steps to save money during the season. Among the most popular strategies are buying fewer items (42%) and seeking out coupons, discounts, or sales (41%). Additionally, 30% intend to start their holiday shopping earlier, harnessing the advantage of early-bird deals.

Some shoppers opt for a more hands-on approach, with 15% planning to make homemade gifts or crafts, and 10% opting for used or secondhand items. Rossman recommends looking into unused gift cards and unredeemed rewards points to maximize savings.

Avoiding the Pressure to Overspend

Holiday shopping doesn’t have to be a financial nightmare. With the right approach, you can enjoy the season without breaking the bank:

1. Stick to Your Budget: Create a comprehensive holiday budget that covers all expenses, including gifts, travel, decorations, and more. Stay disciplined and avoid impulse purchases.
2. Take Your Time: Begin shopping early to avoid last-minute panic. Let expensive items linger in your cart, giving you time to consider your purchases carefully.
3. Choose Quality over Quantity: Rather than buying numerous low-quality items, opt for fewer, high-quality gifts that will be cherished for years. This approach benefits both your budget and your loved ones.

Conclusion

The holiday season can be a time of joy and celebration, but it can also bring financial stress. However, by adopting smart shopping strategies and starting early, you can make the most of the season without compromising your finances. This year, join the ranks of savvy shoppers who plan to start their holiday preparations well before Halloween and enjoy a stress-free and budget-friendly holiday season.