How to budget for the holiday season, according to a financial expert

Stay on Budget This Holiday Season with Thes Expert Tips

PayPal is a sponsor of “Good Morning america.”

While the holiday season can bring a lot of excitement, shopping for it can create a lot of stress — on your mind and on your budget.

Nicole Lapin, a financial expert and bestselling author, is here to help you stay on budget using tools such as PayPal to both maximize savings and earn rewards.

Start with a realistic ‘holiday number’

PayPal reports that 60% of shoppers “feel more financial stress heading into this holiday season,” so Lapin recommends breaking down your budget into two parts,”before” and “after.”

“Before the holidays, try 50% for gifts and gatherings, 30% for travel and experiences and 20% for extras that always come up,” Lapin tells “good Morning America.” “After the holidays, flip the focus to rebuilding: 50% to savings, 30% to paying off balances, and 20% to small treats that keep you motivated.”

Make your money moves predictable

Find peace of mind with PayPal’s Buy Now Pay Later. There are two ways to pay: Pay in four installments or Pay Monthly.

“Buy Now Pay Later can be a great tool if you use it responsibly,” Lapin explained. “it allows you to spread out payments, but make sure you understand the terms and conditions, and that you can comfortably afford the installments.”

Additionally, PayPal offers 5% cash back on Buy Now pay Later purchases this holiday season.

Don’t forget about rewards

Lapin also recommends utilizing rewards programs and cash-back options when making purchases.

“Look for opportunities to earn rewards on your spending,” she says. “Whether it’s through credit card rewards, cashback apps, or loyalty programs, every little bit helps.”

PayPal offers rewards through its shopping portal and with select merchants,allowing you to earn cash back on purchases you were already planning to make.

Holiday Shopping Strategies: Expert Tips for Savvy Spending in 2024

The holiday shopping season is here,and while the festive atmosphere is appealing,it’s easy to overspend. Experts emphasize the importance of strategic shopping, including price comparisons and utilizing flexible payment options, to maximize your budget and avoid post-holiday regret.This guide provides insights to help you navigate the sales and secure the best deals this year.

The Power of Price Checking

As the allure of twinkling lights and decorated displays draws shoppers into stores, financial experts like Jeanette Lapin urge consumers to remain focused on value. https://www.cnbc.com/2024/11/24/holiday-shopping-tips-from-financial-expert-jeanette-lapin.html Lapin highlights a crucial point: prices can differ substantially between online and in-store locations.

A fast online search before completing a purchase can reveal ample savings. This practice ensures you’re receiving the best possible price, irrespective of where you choose to shop. Don’t assume the in-store price is the best price – take a few seconds to verify.

Flexible Payment Options: PayPal’s “Pay Monthly”

Beyond price comparisons, consider how you’re paying for your gifts.PayPal has expanded its payment options to include “Pay Monthly,” now available for in-store purchases. https://www.paypal.com/us/digital-wallet/features/pay-monthly This feature allows you to spread the cost of larger purchases over several months, offering increased financial flexibility during the frequently enough-expensive holiday season.

This can be notably useful for big-ticket items like electronics or appliances, preventing a large single charge from straining your budget. Though, it’s critically important to understand the terms and conditions, including any associated fees or interest, before opting for a payment plan.

Broader Holiday Shopping Trends in 2024

The National Retail Federation (NRF) forecasts that holiday sales will reach record levels in 2024, despite economic uncertainties. https://nrf.com/media-center/press-releases/holiday-sales-will-reach-record-levels-2024 They predict a total spending of $958.9 billion, an increase of 3.5% to 4% over 2023.

key trends shaping the 2024 holiday shopping season include:

* Early Shopping: Consumers began their holiday shopping earlier this year, driven by promotions and a desire to spread out expenses.
* Online Shopping Dominance: While in-store shopping remains critically important, online sales are expected to continue growing, accounting for a significant portion of total holiday revenue.
* Experiential gifts: Many shoppers are opting for experiences – such as concerts, travel, or classes – rather than customary material gifts.
* Focus on Value: With inflation still a concern, consumers are prioritizing value and seeking out discounts and deals.

Key Takeaways: Holiday Shopping Success

* Price Check: Always compare prices online before making a purchase, even in-store.
* Explore Payment Options: Consider flexible payment plans like PayPal’s “Pay Monthly” to manage larger expenses.
* start Early: Don’t wait until the last minute to begin your shopping.
* Prioritize Value: Focus on finding the best deals and discounts.
* Budget Wisely: Create a holiday shopping budget and stick to it.

Looking Ahead

The holiday shopping landscape is constantly evolving.As consumers become more financially savvy, the demand for transparency, value, and flexible payment options will likely continue to grow. Staying informed about the latest trends and utilizing smart shopping strategies will be crucial for a successful and stress-free holiday season in the years to come.