Tips for Smart Spending This Holiday Season

Women wearing red sweater shopping online and using credit card at home office

The holiday season can be a joyful time, but it’s also known for stretching finances. Whether you’re buying gifts, decorating, or hosting gatherings, the expenses add up quickly. To help you navigate the holiday shopping hustle without breaking the bank, Greater Nevada Credit Union (GNCU) offers tips on saving, budgeting, and exploring financing options like our Right Now Loans. Plus, we’ll weigh in on the pros and cons of popular “buy now, pay later” loans.

Start Saving Early

Planning ahead is key to stress-free holiday shopping. Set aside small amounts throughout the year, or start as soon as possible, and consider opening a dedicated savings account for your holiday fund so you’re not tempted to dip into it. GNCU offers a variety of savings accounts that can help you keep your funds organized and earn interest while you save.

Tip: Automate transfers from your checking to your holiday savings account to ensure you’re consistently setting money aside without thinking about it.

Create a Holiday Budget

Before you hit the stores or start adding items to your online cart, create a realistic budget. Make a list of everyone you plan to shop for and allocate a specific amount for each person. Don’t forget to include holiday extras like decorations, food, and travel expenses. A clear budget helps you avoid overspending and financial surprises later.

Tip: Use GNCU’s budgeting tools to track your spending and adjust as necessary throughout the holiday season.

Explore Right Now Loans for Quick Financial Support

Unexpected expenses are bound to happen, even with the best planning. GNCU’s Right Now Loans offer a flexible, quick-funding solution when you need extra cash for holiday shopping. With competitive interest rates and manageable repayment terms, these loans can be a safer alternative to high-interest credit cards or other short-term loans.

Tip: Consider a Right Now Loan if you need to bridge a gap in your holiday budget. Apply in Digital Banking or visit a GNCU branch for assistance.

Pros and Cons of “Buy Now, Pay Later” Loans

“Buy now, pay later” (BNPL) services have become popular, offering shoppers the ability to split their payments over several months with no interest if paid on time. While convenient, it’s important to understand the risks before committing.

Pros:

Immediate Access: You can take home your purchases without paying the full price upfront.
Interest-Free (Sometimes): Many BNPL services offer interest-free payments if you repay within the promotional period.
Flexible Payments: Payments are typically divided into four or more installments, making large purchases more manageable.

Cons:

Risk of Overspending: BNPL encourages spending more than you would if paying upfront, leading to higher overall debt.
Late Fees: If you miss a payment, hefty late fees and interest charges may apply, quickly making the purchase more expensive than it seemed.
Rising Interest: Some BNPL loans charge interest rates similar to those of credit cards. Be sure to read the terms carefully before checkout.
Impact on Credit: Some BNPL services report missed payments to credit bureaus, which could harm your credit score.

While BNPL loans may offer convenience, always weigh the terms and fees carefully before committing.

Holiday Shopping Without Financial Stress

By saving early, setting a budget, and choosing the right financing options, you can enjoy the holiday season without the worry of financial strain. GNCU is here to help, offering a range of services and support to keep your holiday shopping on track.