Holiday shopping in a tight economy: 8 Strategies for holiday survival

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Shopping for the holidays should be a source of joy, not a cause of stress. You want to pick the perfect presents for the people you love, and you are looking forward to a happy and healthy holiday season. 

 

The only problem with those plans is that money is tighter than you thought. The financial markets did not take stock of your holiday shopping plans, and your employer completely ignored your planned gift list when handing out the holiday bonuses. Put simply, your holiday plans have now been upended, but all is not lost.

 

So, how can you salvage the holiday shopping season and preserve its fun and frivolity? Here are eight smart strategies for recession-proofing your holiday shopping experience. 

1. Start shopping early.

Even during times of inflation and recession, bargains are still available, so give yourself time to seek them out. Shopping early, being cautious, and watching for bargains is a great way to survive a recessionary holiday shopping environment. 

2. Avoid debt when funding the holidays.

A recession is no time to take on debt, so put away those credit cards and fund the holidays with money you already have on hand. You don’t want to be paying off your holiday spending spree months or years from now. 

3. Consider a pre-holiday side hustle.

One creative way to fund the holiday season without taking on debt is by taking on a side hustle. You can use the extra money you make to buy presents, host parties, and take care of other seasonal essentials. 

4. Trim your gift list if money is tight.

There is no law requiring you to buy gifts for everyone, so feel free to trim your holiday giving if needed. Everyone will understand, and no one will decry your lack of generosity. 

5. Consider a gift exchange instead of individual gifts.

If you have a large family, buying presents for everyone could quickly deplete your budget, so why not set up a gift exchange instead? You may be surprised at how receptive other family members are to the idea, as they will also be looking for ways to save money. 

6. Buy in bulk and share the bounty.

Those holiday parties might be more expensive during times of inflation and recession, but some strategic shopping could save the day. If a friend has a warehouse club membership, for instance, you can team up to buy in bulk. Sharing the bounty with other party hosts is an excellent way for everyone to save money on the holidays. 

7. Reuse decorations and packaging.

With a recession looming and times uncertain, you will want to make the most of what you already have. That might mean reusing holiday decorations from last year or repurposing gift bags from past seasons to hold this year’s presents. 

8. Focus on future-oriented gifts.

If you have older kids on your gift list, a recession is the perfect time to give future-oriented gifts. Giving your favorite youngster a mutual fund when stock prices are down means there will be more room for that investment to grow. 

 

The holiday shopping season is almost here, and now is the time to get ready. Even with high inflation, you can still enjoy the perfect shopping experience, all without going into debt or getting in over your head. A little preparation now can have a significant impact later.

 

Have questions? SRP offers free financial coaching where you can meet with one of our Financial Counselors to help you navigate your finances. 

 

 

This article is for informational purposes only and is not intended to provide tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors for advice. Membership required. SRP is federally insured by NCUA. 

 

Article Credit: BALANCE