Prepare For A Pricey Holiday
The holidays are often the busiest and most hectic time of the year. This year, thanks to record-high inflation, you can add “priciest” to that list as well.
While shopping for gifts is rarely ever cheap, this year’s forecast looks especially painful. The annual rate of inflation currently sits at 8.3%, which is well above the 2% that the Fed shoots for. Prices are rising even faster than that in some categories. For example, the average cost of groceries has risen 13.5% from last year. That latter data point will bring on additional headaches if you plan to host a holiday dinner.
With inflation soaring at this level, it’s extra important for consumers to be strategic with their holiday shopping this year.
Avoid Frosty Finances
There are a few strategies that experts recommend when prepping your budget for the holidays.
One approach is known as “reward stacking” while shopping for holiday gifts. This is when an individual combines several different shopping rewards programs to maximize savings. For example, using an online coupon service while also using a credit card that gives 3% cash back.
Speaking of credit cards, many consumers look to take advantage of credit card referral programs. Some banks and lending institutions will pay $100 or more for encouraging new members to sign up. This can be another easy way to recoup the money that you’re losing as a result of inflation.
Making a List, Checking It Twice
Perhaps the most important thing consumers should focus on is carefully planning ahead for their holiday shopping this year.
There’s no doubt that the higher inflation rate will make this holiday season a little more painful than normal. But by creating a game plan ahead of time, you’ll know exactly how much cash you’ll need on hand. Additionally, buying gifts well in advance can help you take advantage of sales while also avoiding any extra fees for expedited shipping.
Thanks to high inflation, shoppers might need to get a little creative with their spending this year. However, as the Whos in Whoville taught the Grinch, it’s not really about the presents anyway – just don’t tell that to Amazon (AMZN) or Walmart (WMT).
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
More from MediaFeed:
6 ways to prevent holiday debt
Featured Image Credit: narith_2527/iStock.