You blink and it’s almost over! Does anyone else feel that this year flew by quickly?
We at My Financial Coach are excited about the upcoming festivities of the holiday season. There is of course one shopping day in particular that our financial coaches do like to keep a closer eye on. Yep, you guessed it: Black Friday.
Particularly when it comes to the changes in a client’s spending as they approach the holidays. According to an article from Capital One Shopping Research, data shows that the average Black Friday shopper will spend a total of about $480. Many of our clients of course find themselves spending even more as travel and time spent with loved ones increases during the holidays. After all, we know why Christmas products are working their way into stores now at Halloween instead of Thanksgiving. People spend more when they start shopping early.
It’s not a surprise that many are adopting more conservative spending habits due to recent economic events throughout the past few years – even if they do feel that they have a satisfactory level of income. Reports from PwC’s 2024 Holiday Outlook survey show that many have made the conscious decision to cut back spending in other areas of their lives that are primarily nonessentials.
34% of shoppers will begin the hunt for gifts and other holiday purchases right on Thanksgiving day, says Drive Research – a trend that we feel has become more prevalent through the past decade or so. Some who were surveyed even reported that they had chosen to forgo their Thanksgiving dinner in favor of searching the shelves for deals. Sure, the gifts for your friends and family do have to be bought at some point, but maybe stop and visit with those same individuals over some mashed potatoes first?
A few shoppers with keen eyes over recent years have pointed out that some businesses will raise the price of a few of their products for sale, then will market those products with discounts and language about deals and savings that turn out to be relatively the same purchase price compared to the price of that same item just a few weeks prior (if not possibly higher now even with the newly advertised discount). Of course, not every store is guilty of this, but it does make you think sticking around for those mashed potatoes may not be such a bad idea. Perhaps it is not actually a financial benefit to spend several hours in a long line waiting outside for a store to open.
It could be a good idea to plan holiday shopping during a different time of the year that isn’t during the typical gift-buying season. Many items that would make good gifts may have actual deals or be eligible for significant discounts during buying off-seasons – it just depends on the store. Other than gift cards (with 53% of shoppers requesting them on their 2024 wish lists) clothing and accessories, books, and other media as well as personal care or beauty items rank among the top sought-after Black Friday purchases. Those are all items that can be bought year-round and stored until they are ready to be given. Also, creating a list of ideas for gifts throughout the year is a great way to help with quick bargain hunting during Black Friday or otherwise. Organization can also help you finish shopping faster and resist the temptation to buy things you may not need.
The National Retail Federation also shares that younger consumers between age 18 to 24 will also be going to thrift stores and resale shops for their gifts. Maybe a secondhand or refurbished gift isn’t for everyone… but there are lots of old-fashioned holiday decor items that popular interior designers say are coming back into style for Christmas 2024! Thrifting holiday decorations to decorate your home with at a fraction of their original price can be both a fun holiday activity to do with your family and friends, as well as be a good opportunity to frugally obtain classy, timeless holiday decorations that just need a second chance to truly shine again.
So wrapping this up here, should you or shouldn’t you shop for Black Friday?
That really depends on your specific budget and circumstances. If you’ve allowed for holiday spending by saving up throughout the year or if you’re comfortable enough with your level of income that taking advantage of a few good deals works for you – then by all means! Go for it. (That’s not financial advice, by the way)
If you feel like it would be helpful to take out a personal loan or a “buy now, pay later” solution for holiday gifts, that can be a good sign that it might be in your better interest to keep the number of gifts pretty slim this season and avoid taking advantage of a personal loan if possible. Instead, our coaches will often instruct clients to save up and “take a loan from yourself” so that they always know they already have the money allocated when it comes time to pay for unordinary expenses. But once more, each person’s situation is unique and must be handled accordingly with advice tailored to their own financial picture.
Clients who have been with My Financial Coach for an extended period of time know that the online dashboard powered by eMoney will show you what your specific spending throughout your late October through December time frame looks like from year to year. You can use that number as a rough guideline for what your holiday spending will look like again this year, or compare it as a benchmark if your goal is to perhaps spend less this season. You can even set up a specific budget for holiday shopping, and the software will track expenses in real time. It offers a visualization in the form of filling up a bar that shows how close you are to reaching the set spending limit.
If you are curious about speaking with a coach, set up a call with us so that we can explain our services and answer any questions.
