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Holidays can be a time of stress and financial strain when it comes to gift giving. Consumers report that they plan to spend less during the 2023 holidays. As a result, holiday shoppers might be looking for creative ways to stretch those dollars—but beware: Scrooge may be hiding to try to take those hard-earned dollars.
- Are you realizing that the gift you ordered while scrolling social media or surfing the web never arrived? You may have been a victim of a fake ad. A Federal Trade Commission report found that consumers lost $2.7 billion to fraud originating on social media and $2 billion to website or app fraud. The majority of reported social media scams were shopping scams. Learn how to avoid scams and—if you have been the victim of fraud—the actions to take.
- Don’t put a damper on holiday cheer with late credit card payments. Paying your bill on time is important since late payments can result in fees and a reduced credit score. Higher interest rates may mean the higher interest payments on credit cards as well. Additionally, inaccurate credit reports could also be costly, so it’s a good idea to request a free copy of your credit report from each of the three major credit reporting agencies.
- Buy now, pay later offers may seem like an attractive way to defer payment until after the holidays and perhaps even to spread the payments over time. The downside may be debt accumulation, overextension, and inconsistent consumer protections.
- Now for a really scroogy tip—many economists would say that gift giving is an inefficient use of resources. This comes in part because the gift receiver often places a lower value on the gift, whether a gift card or a purchased item, than the gift giver does, a phenomenon economists call deadweight loss. Since holiday spending can pinch a budget, consider whether you are making purchasing decisions that align with your goals. Learn more about securing your financial future.