Article 26

The holidays are a time of joy, love, and giving, but it can also be a season of overspending and financial stress. According to an exclusive CNET Money survey, 69% of respondents admitted they're likely to overspend during the festivities. Not surprising, given the magnetic pull of holiday sales and the emotional desire to give and celebrate. But what if we told you that enjoying the holidays doesn't have to come at the expense of your financial well-being? This month, we’ll arm you with savvy tips and tricks to navigate the holiday season without breaking the bank or your peace of mind.

Reflect on Last Year's Holiday Spending

Before diving headfirst into this year’s holiday season, I always take a moment to remember how I felt about my spending last year. I get really impulsive during holiday sales; buying things gives me short-term joy. But that joy quickly evaporates when I later check my credit report. So, I started asking myself:

• Did I regret any purchases?
• Did the items bring me as much joy as I thought they would?
• Am I still using what I bought last year?

These questions have been a game-changer for me and could be for you too.

Keep your budget clear and concise

A budget isn't just a number; it's a strategy. A crucial one during the holiday season. Categorize your expenses into gifts, travel, holiday attire, etc. Keep it simple and realistic; a convoluted budget is a surefire way to deter you from following it. Imagine allocating your discretionary dollars, 50% of your budget for gifts, 30% for travel, and 20% for other activities. Keeping it practical can keep you in a better mindset. A user-friendly budget tool, like the one we're building into Article 26, will make this process even easier

Understand buy now, pay later terms

In our digital age, "buy now, pay later" options have gained popularity, especially for holiday shopping. While they offer much-needed flexibility, mismanaging them can lead to financial pitfalls. Chattanooga Times Free Press reported that users who use buy now, pay later options are “two times as likely to carry student loan debt (due in part to their age cohort) and three times as likely to owe other personal debt.” Before using this option, make sure you understand the repayment conditions and the interest rates. Think about a strategy to pay off your balance in full and on time.

Stay on top of your spending

Technology is your best friend for managing your finances during the holiday season. During our beta-testing sessions, we have talked about using banking apps and other platforms to manage our finances. Find the way that works best for you. I personally prefer the old-fashioned Excel spreadsheet. I especially like reflecting on each purchase as I enter each spending onto the spreadsheet at the end of the week. Find your strategy to monitor your transactions, categorize your expenses, and stay informed about your financial activity.

Think of Alternative Ways to Gift

There is no definition of one right gift. When it comes to gifting family, especially parents and grandparents, I love to get creative and craft handmade gifts. Let’s be real, they are often more financially stable than I am, so I often feel pressured purchasing a gift. However, DIY gifts not only are budget-friendly, but also have a personal touch attached to it. In addition to handmade gifts, time can also be something great to give. Think about creating memorable experiences or providing services to friends and family.

Find a Budget Buddy on Article 26’s Network

The temptation to splurge during the holiday season is real. Having a budget buddy from the Article 26 community can go a long way in keeping you accountable. Visit our newly launched Facebook and Instagram pages to connect with like-minded individuals who can help you maintain sound financial habits, even beyond the holidays.

Empower your financial future this holiday season!

Preparing for the holiday season financially is more accessible than ever with the right strategies. With these tips and tricks in your financial toolkit, you can navigate the holiday season with confidence! Soon, Article 26 will provide the tools and education to elevate your financial literacy and make budgeting a breeze at any time of the year. Stay tuned for our launch, and in the meantime, head over to our pre-launch community forums to share and gather more holiday budgeting tips. Let’s make this holiday season a financially empowering one!

‍

Sources:

Nearly 7 in 10 Shoppers Likely to Overspend This Holiday Season, Survey Finds - CNET Money

How To Build A Holiday Budget (cnbc.com)

How to Build a Holiday Budget That Works Every Year - NerdWallet

10 Holiday Shopping & Budgeting Tips to Avoid Overspending (bankofamerica.com)

Is buy now, pay later setting a holiday debt trap? | Chattanooga Times Free Press