Smart ways to protect your wallet this holiday season
Santa isn’t the only one with a busy schedule over the next few weeks.
Consumers expect to spend an average of $542 between Thanksgiving and Cyber Monday, according to a report published Monday by the ICSC, or Council of Shopping Centers. And for many, that’s all leave for the 2025 holiday shopping period.
It’s an expensive time of year, and economic concerns are high. Not only did inflation hit 3% in September, but the nation also recently experienced a 43-day government shutdown that went without pay — all as businesses continued to pass on the President’s consumer policies.
Fortunately, there are steps you can take if you’re trying to make it through November and December without being overlooked financially. Here are six smart ways you can protect your wallet this holiday season.
1. Know what it doesn’t have it changed
Wendy Bergh, Chief Marketing Officer of Rakuten Rewards, says holiday shopping at big box stores will be no different than usual. It’s a multi-vendor sandwich, so “they’re going to pull out all the stops to meet consumer expectations, just like they do every year,” Bergh said.
“Consumers still want a good deal, and retailers will want to deliver. Despite economic headwinds, retailers remain aggressive when it comes to the holidays,” it adds.
You just need to know how to use them.
2. Start early (like, now)
Bergh suggests making a list of who you’re shopping for, who you might want to shop for, and what your budget is for each person. Then you can bookmark your favorite stores, track their sales and join their loyalty programs for deals.
Major retailers are already launching a ton of deals. For example, it already has a three-day Wednesday sale that boasts 40% off most items. The best buy throws even the first scientists.
“Don’t wait until the last minute,” Bergh said. “That’s when prices and shipping costs rise, creating steep prices and financial stress peaks.”
3. Don’t stay
Even though Christmas is over a month away, scammers are ready to move.
To keep yourself safe, experts suggest sticking to reputable sellers, checking URLs to make sure they’re secure, and avoiding social media deals that seem too good to be true.
If possible, you should also pay with a credit card, not a debit card, because credit cards have much stronger protections (and fallback options if things go wrong).
4. Research and slow down
Dana Bodine, says: “In this time of uncertainty, every dollar matters. So you have to be very objective about resisting the collapse of Impulse Buys.
Savvy shoppers “all know that sometimes sales may not be as good as they seem,” she said. But with “every call to action and coupon code and everything coming at you from every platform,” it’s easy to feel pressured to complete a purchase without thinking about what you’re doing.
The key here is to stop, think and do your homework. Bodine says to always read customer reviews to find products. Those methods can help you draw conclusions about returns on alternative investments.
5. Outmart sales
Marketers are exploiting an entire body of psychological research to convince consumers to spend more money. Being aware of these tactics can help you resist them.
For example, you should be aware of Left Like-Digit Bias, which occurs when you focus more on the left digit than the right digit. (This is why $4.99 feels so much cheaper than $5.) Left-handed digitization can trick your brain into spending less money than you should or convince you to buy things you don’t need because they seem cheap.
Remember, too, that sellers often produce shortages, such as restricting how many items you can buy or insisting on a certain discount period.
6. Keep an eye on store returns
It’s been a wild few years for store return policies. Since the pandemic is over, retailers have pulled back on offering free, hassle-free returns. According to an October report from the National Retail Federation and Happy Retudents, a whopping 72% of American retailers now charge one-way returns.
The recovery windows get smaller, too. But many retailers are expanding customer-friendly policies around the holidays, such as Walmart allowing customers to return most items purchased between Oct. 1 and December 31 on Jan 31.
Keeping track of all these brochures and policies can be tricky, but it’s necessary to avoid paying extra to return unwanted (or inappropriate) gifts.
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