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How Covid-19 has impacted this holiday shopping season

The countdown to Christmas is on. We're getting anxious about buying gifts, but local financial professional Scott Braddock is here with advice to calm our nerves.

The holiday shopping season looks and feels different this year. The pandemic, recession and record unemployment have some feeling like scrooge! 

Local financial professional Scott Braddock from Scott  Braddock  financial joins us to share four things you can do with your money right now to make the season merry & bright.

As if online shopping wasn’t popular enough, the pandemic is pushing more shoppers out of stores and onto their computers and smartphones to purchase presents. \

In fact, 60% of shoppers say they plan to buy most of their gifts online.

The holiday shopping season also kicked off earlier this year, with retailers like Amazon, Walmart and Target offering deals starting in October. 

 An earlier start doesn’t mean we’re spending more. Shoppers are expected to spend about $50 less this year compared to last year. 

Q: WHAT CAN WE DO TO PLAN AHEAD THIS HOLIDAY SEASON?

 Set a Spending Plan

Setting a spending plan is the key to success, especially in the midst of a pandemic when everyone is watching their wallets closely.  

Start by getting as detailed as possible. Look at your budget to determine how much you can afford to spend this holiday season. Then list each person you need to buy gifts for.  

 Knowing the total amount you can spend, decide exactly how much you will spend per person. Don’t forget to budget for the extras, like wrapping paper and holiday decorations! 

If you need help setting your plan, I have a holiday budget worksheet on my website,

Choose Cash vs. Cards

 With your spending plan by your side, decide how you will shop. If you’re like most people turning to online shopping, you’re likely using your credit card more than cash. 

One of the worst things you can do is put your holiday gifts on a credit card and then not pay it off. 

If you’re only making the minimum payment on your card each month, those gifts will get a lot more expensive when you add up the interest accrued. 

If you’re shopping in stores and want to avoid racking up debt, bring just enough cash with you to cover your gift list. 

Consider Alternative Gifts

Instead of the usual holiday gifts, give a gift that lasts. One idea is to contribute to your child’s or grandchild’s future education through a 529 plan.

The money you save in a 529 plan won’t be taxed as long as it’s used to pay for approved educational expenses, like tuition, fees, books, supplies and room and board. 

You might also consider setting up a checking or savings account to teach your child the basics of saving and budgeting. 

If you can’t afford gifts this year due to a job loss or other financial hardship, that’s okay. Handmade gifts and cards will do - It’s the thought that counts!

Don’t Forget About You

You’ve made your list and checked it twice, but it’s likely you forgot to include a gift to yourself this year!

We’re not talking about a new TV or home gym. Instead, commit to your financial future by setting money aside to replenish your emergency fund or pay off debt. 

Debt is one of the biggest things holding people back from saving more and enjoying a worry-free retirement.  

I am a firm believer that if you’re going to make any big decision in life, you need a good coach.

The first step to a worry-free retirement is to have a clear and defined vision. We want to understand your goals and concerns to determine your financial DNA.

 

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