The holiday season is almost here. Have you considered your budget for gift giving this year? According to a recent survey conducted in early October of 2020, consumers plan on spending less on gifts this year than they have in previous years.1 This year has certainly impacted finances differently than in previous years due to the pandemic, and it’s even more important to ensure you are aligning your spending with your budget.
Below are five tips to help keep your finances on track.
1. Calculate Your Budget
One of the most important components of making a budget is figuring out how much you can spend without putting too much strain on your finances. When you’re making your budget, keep in mind what bills you have coming up and factor in any necessities, like gas and groceries. This can help you determine how much money you can allocate towards your gift giving. It’s often a good idea to use a savings calculator if you are saving for something specific, like gift giving.
2. Make a List
One way to help you keep track of your spending is to make a list of the people you are buying gifts for and what gifts you anticipate on buying for each person. As you buy gifts, check that item off of the list. This will help you keep track of the gifts you’ve already purchased and what you still need. If you’re having trouble thinking of a gift for someone, consider purchasing a First Bank Mastercard® gift card for them. These gift cards allow you to choose your own value amount and can help you stick to your budget.
3. Track Your Purchases
Once you start purchasing gifts, keep track of how much you’re spending on each gift. Are you purchasing things that aren’t on your list? Are you purchasing things that cost more than you expected? Keeping track of the dollar amount you spend can help you determine if you’re overspending or if you’re staying within budget.
4. Start Saving Early
Saving early for things like gift giving for the holidays is an ideal way to ensure you’ll have enough funds available. It can help reduce financial stress and strain when you need to start buying gifts. Our digital savings app, Plinqit, can help you start saving early for next year’s holiday gifts. Plinqit securely links to your First Bank accounts, and lets you set a savings goal. The app will calculate how much you’d need to have automatically withdrawn over a period of time in order to reach your goal. This is an ideal solution to ensure you’ll have enough funds available for next year’s gift giving.
5. Look for Deals
One way to stay within, or under your budget, is to look for deals. Is there something on your list that is just over budget? Shop around at other stores to see if they offer the same item for less. Often, shopping for the lowest price will help you stay under your budget, allowing you to put the remaining money into your First Bank savings account.
Finding ways to save can help free up funds in your budget to allocate toward your short and long-term financial goals. If you’d like to reach out to a First Bank team member to discuss how our products and solutions can help, simply fill out a contact form.
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1CNBC, The Penny Hoarder