During this year’s holiday season, the average American plans to spend about $998 on food, decorations, gifts, and other holiday necessities, as reported by the National Retail Federation (NRF). Considering the COVID-19 recession that has left many Americans jobless and financially unstable, you should strive to minimize your expenditure this year to avoid going into debt. This is because, despite the economic challenges at hand, most Americans intend to use this holiday to reward themselves for enduring the toughest of all times, which may cause an increase in expenditure.
Here are a few money-saving tips to help you celebrate the winter holidays even during the pandemic.
Create a Budget and Stick to It
A recent study has revealed that about 65% of Americans set a budget for holiday expenditure, although a whopping 77% of them exceed it in the long run. So, you should not only plan a budget for your winter holidays but also stick to it. Take note that since the COVID-19 pandemic is still an imminent threat to your health, your shopping list should include personal protective equipment such as masks, hand sanitizers, and face shields.
Forego Some Things
During the holidays, you’re probably used to visiting lots of places, eating your favorite food, and throwing huge parties at home. Bearing in mind the prevailing economic conditions, you may want to do things differently this year. You may consider giving up some of your holiday traditions and only spend money on what is essential. For instance, you don’t have to travel miles away to go on vacation or visit your loved ones. Instead, you can stay at home and hold a virtual celebration with them. This will still make your holidays memorable and help you save money during the current pandemic.
Naturally, the demand for holiday-related goods and services such as the Christmas tree, decorations, and gifts increase during holidays, as reported by the U.S. News and World Report. If the supply of such items doesn’t increase, high chances are that the prices will go up. The best way to save money on such items is to shop early enough before everyone starts buying.
Live Within Your Means
While 75% of Americans feel pressured to buy gifts for their loved ones, about 40% of them expect to go into debt during the holidays, as published on Statista. Even worse, about 30% are still paying debts from the previous year’s holidays. This shows just how difficult it is to keep up with the holiday financial needs, especially because of the current COVID-19 recession. Although there is pressure from all sides, try and live within your means to avoid long-term financial harm. For instance, you don’t have to buy your children expensive gifts if you can’t afford them without straining your finances. Most importantly, restrain yourself from taking loans to spend on holidays.
To avoid financial ruin, use these money-saving tips during pandemic. Additionally, purchase the right insurance coverage. Do you need help evaluating your insurance needs during the holidays? Visit Abbate Insurance for your insurance policies in New Haven and neighboring cities in Connecticut!