The team from ME Bank’s Pacific Fair branch talk about some financial considerations to keep in mind during the holiday season and help you stay on top of your finances.
Before you rush into Christmas shopping this year, it might be a good idea to do some planning. There may be ways you can save money and avoid a New Year financial hangover. Without being Scrooge, here are some things you may like to consider.
Credit versus debit
Debit cards are becoming increasingly popular, particularly those with ‘tap and go’ capabilities – enabling speed and convenience at the checkout. They allow you to shop in store, online or over-the-phone using your own money instead of using credit. Most debit cards also provide you with access to your funds at ATMs both in Australia and overseas.
If you are using a credit card, keep an eye on how much you spend. Perhaps write down everything on a list so you know exactly what you have spent or login to track your spending through online banking. Don't wait until your monthly statement to get a surprise!
The best way to avoid having high credit card bills is to have a low credit limit. Perhaps now is a good time to ask your credit card provider to reduce your limit. Plus, look for a credit card that has a low interest rate on both purchases and cash advances. You can find some tips on good credit card habits at mebank.com.au/creditcards
Budgeting
Establishing a budget is a good way to attempt to keep your spending under control. Work out what you intend to spend on each of your friends, co-workers and family members, and add a proposed gift for each person to your list. This process may save you time on your feet in the shops and could reduce the risk of you making impulse purchases that don’t meet your budget.
And remember, gift buying is not the only activity that can cause budget blowouts at Christmas. It is wise to consider your budget in line with the other festive season extras you may encounter, including additional entertaining expenses.
Research
Investing time in price shopping on the internet may also help you stretch your budget while saving your shoe leather.
You can also compare prices between retailers to ensure you’re getting the best deal possible and check if the gift you want is in stock before hitting the shops.
Willpower
As with any budget, commitment to it is necessary.
Having control of your money, no matter how little or how much you have, will help you feel more secure and content.
Other strategies
There are also several other strategies that can help keep your gift-buying budget lean.
- Establishing a family or workplace ‘Kris Kringle’ may be a way to keep costs down.
- Making gifts, especially for family members, may also be a cheaper alternative to multiple different store-bought gifts.
- Photo calendars and framed photographs can become treasured possessions.
- Making a donation to a charity on behalf of your friend, family or co-worker can also be a way of sticking to a budget whilst also supporting the wider community.
Talk to us
And, remember if things don’t quite go to plan and you do strike financial trouble, you can talk to us.
Things may not appear as grim as they seem and there may be a way to help, such as debt consolidation. Don’t let the problem grow bigger by ignoring it.