Yahoo Finance 7 Ways To Manage Holiday Shopping in Retirement
A recent survey found that the average American would spend about $1,100 just on holiday gifts this year. While the holidays can financially strain anybody, they’re especially a challenging time if you’re a retiree dealing with inflation, rising healthcare costs and a limited income.
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Providing your loved ones with a memorable holiday experience without spending too much will require careful planning. Here are seven ways to better manage your holiday shopping as a retiree.
1. Know Your Budget Well
When living on a fixed retirement income, budgeting becomes extremely important. Not only do you want to avoid accruing debt, but you shouldn’t have to withdraw extra funds from your retirement account to cover holiday overspending, either.
After examining your retirement income and everyday expenses, determine the maximum amount available for holiday purchases in your budget. If the amount seems too small, you may need to make cuts to other costs first. You can then allocate specific amounts toward gifts, meals, travel, decorations and other seasonal expenses. Plan to stick to these limits.
2. Speak With Your Loved Ones Beforehand
Whether you’re concerned about a tight budget or you want to coordinate gifts, don’t be afraid to speak with your children, grandchildren and other loved ones. It can seem uncomfortable to discuss money issues, but you might find that your loved ones share similar concerns about paying for holiday gifts.
Working together, consider ways to reduce the financial strain. For example, you might agree to only buy gifts for the kids, make your own gifts or bundle gifts for couples. Another option is to focus less on physical gifts and more on quality time or a shared holiday outing.
3. Create a Holiday Shopping List
Shopping without a plan can easily lead to impulse buys and overspending, making the holidays more stressful. So, you should create a holiday shopping list that itemizes all your expected expenses so you get exactly what you need and avoid unplanned purchases.
For example, you might write down each gift recipient’s name alongside a gift idea. This is a good time to set a spending limit per person to reduce the risks of spending too much and regretting it. You can even include where you’ll buy the gift to more easily manage your shopping trips.
4. Don’t Wait Until the Last Minute
As a retiree, you probably have a much more flexible schedule than during your working years. Rather than having to rush at the last minute, you’re in better shape to time your shopping trips when stores aren’t crowded, the best deals are available and items are still in stock.
Start shopping as soon as possible since this will give you time to research your purchases and find the lowest prices. And in the future, consider shopping stores’ clearance sections throughout the year and putting items aside for the holidays. This can be a good way to get cheap toys for the grandkids and clothes and household items for your adult children.
5. Research and Compare Prices Online
Along with being familiar with in-store prices, look up your holiday shopping list items online. You can use price comparison apps, search individual retailers’ websites or scan online ads. Compare the prices to find the best deal, as well as look up price-matching policies that could get you the item locally for the same price.
During the process, avoid buying holiday items from cheap online shops that are actually scams. You should also consider any fees and shipping charges that make online purchases less of a deal. Plus, be careful not to buy extra items only because they’re bargains.
6. Take Advantage of Discounts and Rewards
As a retiree, you can likely take advantage of senior discounts at grocery stores, restaurants, entertainment venues, travel providers and retail stores. While some are always available, other senior discounts apply on certain days, only work for in-store purchases or require a membership. Check with the places where you plan to shop.
You can also use tools such as RetailMeNot and Rakuten, or visit your favorite stores’ websites for general coupon codes. Retailers such as Kohl’s and Target have free loyalty programs you can join to receive coupons and store cash. Plus, see if your credit card has any cashback offers for certain retailers and take advantage of any rewards you’ve earned.
7. Carefully Track Your Holiday Spending
As you manage your holiday shopping, carefully track your purchases and compare them to your shopping list and budget. This can get time-consuming, so consider budgeting apps that can do some of the work and guide you.
If your holiday spending gets out of control or you find yourself in debt, stop shopping and re-evaluate your financial situation. It might be time to change your gift-giving plans or cut other costs. You should also make plans to tackle existing holiday debt, including setting a payoff deadline and temporarily cutting costs in your retirement budget.
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This article originally appeared on GOBankingRates.com: 7 Ways To Manage Holiday Shopping in Retirement
