The holiday season in the Ouachita and River Valley regions is a festive one that can boost the community’s spirits but also stretch people’s budgets. Our holiday shopping tips in Arkansas include setting a budget, saving what you can, planning for what you’ll spend, hunting for savings, and avoiding debt.
Set a Realistic Holiday Budget Early
Smart holiday spending in Arkansas starts with your typical monthly budget and your fixed costs (rent/mortgage, insurance, etc.), and your variable costs (such as utilities and groceries). Before tackling a holiday budget, you want to make sure you’ll be able to cover your regular expenses. Also consider any added expenses you might have within the next few months, such as vehicle maintenance or medical costs. You’ll want to consider the entire picture before you focus on having fun.
Then take a close look at your holiday budget, how much you spent the previous year, and your expected costs for this year. Your costs may include travel, meals, parties, decorations, and donations. Once your regular expenses and holiday costs are accounted for, you can compare this to your income and figure out how much you can spend on gifts. In terms of income, don’t bank on something that might not pan out, such as a tax refund or a holiday bonus. Focus on the income that you know you can count on.
Take a close look at both your regular and your holiday budget and look for ways to save. You might cut back on your regular spending, such as avoiding unnecessary purchases. For many people, that means not buying clothes, avoiding restaurants, and cooking at home rather than ordering takeout or food delivery. You might also consider cutting any streaming services that you don’t use very much. Many people sign up for a streaming service to watch a particular show and then forget about it for a while.
Open a Dedicated Holiday Savings Fund
While the holiday season is at our doorstep, we might as well mention that Union Bank can help you save up for the holidays or any other occasion or expense, such as a vacation, with savings accounts and automatic transfers. Many of our customers have their paychecks deposited into a checking account that they use for paying bills and regular expenses, with automatic transfers into their savings account each pay period, once a week, or at the end of each month.
Our Union Bank Christmas Club Account is one of the more popular holiday savings strategies in Ouachita Valley because it lets you set a little aside throughout the year, knowing that whatever you set aside will grow over time from compound interest. You’ll automatically receive your money and time for the holiday shopping season. Monthly payments from $25 to $500 are required.
Make a List and Stick to It
It can be easy to get carried away with holiday shopping, and we know that for many folks, their River Valley holiday budget might be a little tight this year. By creating a budget with spending limits for each category and individual, you can reduce the odds of an impulse buy ruining your budget. Think of all the people you’ll be exchanging gifts with this year: Family, friends, coworkers, neighbors, etc. Keep track of your spending and compare it to your budget on a regular basis to make sure you stay on track.
You might also curb your spending and create a lasting memory at the same time by offering homemade gifts based on whatever talents you and your family have. If you have a knack for cooking and baking, or maybe an old family holiday recipe, consider making people some holiday treats and delivering them in an inexpensive but festive container. Just make sure you won’t cause any issues for those with food allergies and diet restrictions.
Holiday ornaments, decorations, and centerpieces are another good option and can create an inexpensive but meaningful memory that can last a lifetime. If you’re struggling to come up with ideas, poke around online through Pinterest and other sites to see if anything strikes your fancy. You could also offer experience-based gifts, such as teaching a friend or neighbor a useful skill that you happen to know, a trip to the Ozark Mountains, and the Ouachita Mountains.
Shop Smart: Timing, Deals & Rewards
For anything you buy online or in person, start shopping early to avoid last-minute price spikes and shipping delays. Some retailers start their holiday sales before Thanksgiving, so be on the lookout for them. You should also do some comparative shopping between stores and keep an eye out for holiday sales such as Black Friday, Cyber Monday, and Small Business Saturday.
You can also look for coupons and sales online from websites such as Coupons.com, RetailMeNot.com, and BlackFriday.com. They are useful for finding sales, coupons, and holiday shopping tips. You can also look for customer reward programs. Newsweek ranks the best retailer loyalty programs, and you can also check with your favorite retailers to see what they offer.
Use Cash, Debit, or Low-Interest Options
Even with a detailed holiday budget, we know how easy it can be to still rack up some debts during the season. This is especially true with credit cards, which typically carry high interest charges. Try to avoid that pitfall by paying with cash whenever possible, or your debit card (as long as you have enough in your checking account to still cover your regular bills). If you do use a credit card, make sure it doesn’t break your budget and make an effort to pay off your balance as quickly as possible.
Many people overdo it on their holiday spending and can wind up paying more in interest charges on a credit card than they ever spent on shopping. This is another reason we recommend setting something aside all year with regular transfers from your checking account to a savings account or Christmas Club Account. It can help you avoid an interest debt pitfall and keep your budget financially healthy.
Tap into Your Rewards
While you do want to avoid taking on credit card debt (or any other kind of debt) over the holiday season, the responsible use of a credit card does have its advantages. They’re convenient, safer than using cash, make it easy to keep track of your spending, and many of them offer rewards.
At Union Bank, we offer these credit card options:
• Rewards Platinum Visa: Lets you earn one point per dollar on all net purchases that you can redeem for merchandise, travel, and other activities.
• Cash Rewards Platinum Visa: Earn an unlimited amount of 1% cash back on all your net purchases.
• Visa® Signature: Offers exclusive perks, such as access to the Visa Signature Luxury Hotel Collection and unlimited reward points that can be redeemed for merchandise, travel, and activities.
• Excursion™ Visa Signature: Get exclusive perks and earn 2% cash back on air travel, hotels, and dining at restaurants and 1% cash back on all other purchases.
Some of our customers use their Rewards Platinum Visa for their regular shopping throughout the year and use the points they’ve accumulated to help with their holiday spending and travel. Others like to use our Cash Rewards Platinum Visa for holiday shopping because the cashback helps them cover expenses.
Track Your Spending & Review the Results
For a budget to be effective, you’ll have to keep track of your spending to see how you’re doing and if you stay on track. That’s especially true over the holidays, when you might get caught up with the idea of finding a “perfect gift” even if it breaks your holiday budget. We recommend reviewing your budget and spending regularly, such as when you’re shopping or at the end of a shopping trip. Keep track of what you spent on each gift and how much left you have in your budget. Whether you use a pen and paper, a budgeting app, or a spreadsheet on your computer is up to you (our own MyFi 360 app makes it easy to track your spending and check your account balances). What’s important is that you choose an approach that works for you and to stick with it.
After the Holidays: Save & Recover Smartly
When the season is over and you’re putting the decorations away, take the time to review your credit card bills, debit card transactions, and all your other holiday shopping. Compare this to your holiday budget to see how close you were. If you have any debts or credit card balances to pay off, we recommend focusing on paying them off as soon as possible so you can start the new year off right.
We’re Here to Help with Your Holiday Budgeting
While we can’t help you with choosing gifts, as a community bank, we want to help you with your holiday budgeting, so you end the season on a solid financial footing. You can contact us or visit one of our locations in Mena, Paris, Hatfield, Wickes, Caulksville, Ozark, Waldron, Booneville, and Clarksville to find out how to get started with a holiday savings account with the Union Bank of Arkansas.