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8 Budgeting and Spending Tips To Save Money During the Holidays

Holiday Savings Jar Filled With Coins And Christmas Ribbon And Bow

Following holiday budgeting tips can help keep your festive family time, spirited celebrations, and other fun seasonal activities from breaking the bank. The holidays are considered “the most wonderful time of the year.” But for many Americans, the holidays can also be a significant source of stress — particularly financial anxiety caused by the increased spending that the time of year tends to bring. In fact, according to the American Psychological Association, nearly 60% of U.S. adults report feeling stressed about overspending or not having enough funds available during the holidays.

But by following practical spending tips and stepping up their savings during the holiday season, consumers can put a big dent in the financial stress that often sets in during this time of year. If you’re looking to lower your money-related anxiety, consider these eight holiday spending and budgeting tips that can help you cut your financial anxiety and elevate your seasonal spirits:

  1. Start holiday shopping early

    By planning ahead and keeping an eye out for great Christmas gifts throughout the year, you can start your shopping early. This holiday budgeting tip encourages you to spread your spending out so that you don’t take such a big financial hit during the season. In addition, this tactic gives you a full year to be on the lookout for the year’s best sales and deals. One helpful hint, though: If you do plan to buy gifts early, especially for people in your own household, you may want to plan out a dedicated hiding/storage spot in advance. (It may even be a good idea to wrap your gifts ahead of time to prevent any prying eyes from getting a sneak peek at the holiday goods.)

  2. … and be sure not miss the year’s biggest sales

    Especially during much-hyped annual shopping events like Black Friday, Cyber Monday and Amazon’s Prime Day, retailers typically offer some of the year’s biggest discounts in an effort to capture consumers’ attention (and in the cases of Black Friday and Cyber Monday, to get them started on their holiday shopping early). If you’re looking to save on your gifts, it can be well worth your while to keep an eye on these sales for items that fit the bill for the people on your list. It may take patience to wait for the sales, but this holiday spending tip can deliver significant savings.

  3. When you find the best deals, consider buying multiples

    When you discover especially noteworthy deals on gifts that could work for multiple recipients on your list, don’t hesitate to buy more than one. This tip can help you stretch your holiday budget and there’s no rule against giving the same gift to different people. If you know that all of the recipients will use, enjoy and appreciate the items that you got at a bargain price, it’s smart to buy in bulk and save.

  4. Look for discounted gift cards

    Many businesses and websites, in addition to warehouse clubs such as Costco and Sam’s, will offer discounts on gift cards when they’re purchased in bulk. For example, you may find a set of five $20 gift cards to a popular local restaurant or coffee shop selling for a total price of $80. Another holiday spending tip is to look for buy-one, get-one deals, like one offering a fifth $20 gift card for free when you buy four at regular price. Either promotion provides you with a total value of $100 and a savings of $20. Each of the individual gift cards could make a great gift for someone on your list — and you could even use any leftovers to treat yourself.

  5. Take advantage of tech

    Shopping by price rather than retailer is a holiday spending tip that can help you save money on specific items, especially when shopping online. Tapping into technology can help you find the best prices on whatever you may be looking to buy. For example, apps such asShopSavvy and websites such as Google Shopping enable you to compare product prices across (often thousands) of retailers to find the best deal, plus track prices, get price-drop alerts and more. And of course, even when shopping in stores, checking other retailers’ prices with your smartphone before making a purchase can help you determine if it’s worth your while to hold off on buying and get the item somewhere else at a lower cost.

  6. Make your own gifts

    Especially if you’re crafty or have a knack for making any gift-worthy items for your friends and family members, consider making DIY Christmas gifts this holiday season. Some of the recipients on your list are likely to appreciate a handmade gift even more than a store-bought one, as it shows that you’ve put extra time and effort into your gift-giving. And of course, many DIY gifts cost substantially less to create than their store-bought counterparts, helping you lower your seasonal spending and improve your financial wellness.

  7. Limit your evenings out

    When family and friends gather for the holidays, it can be tempting to regularly go out for meals and seasonal activities. One smart holiday budgeting tip is to stay in and spend quality time together doing things such as cooking meals together, having a game or movie night, baking holiday cookies, or simply gathering around the fireplace and chatting. This can be even more memorable than a night on the town and can lead to big money savings, too.

  8. Find free (and festive) activities

    When you do choose to head out during the holidays but want to save money, try to find fun activities with minimal cost involved. Check your local community calendars for inexpensive holiday events and tips on activities such as parades, performances or festivals with little or no admission fee charged. Join neighbors for a night of door-to-door caroling, or simply drive around your hometown to take in the area’s best Christmas lights. With a little research and preparation, you can find activities that lift your seasonal spirit without taking a big toll on your budget.

Looking to learn more about ways to build up your holiday savings? Read our blog article, “A 6-Step Process to Start Saving for the Holidays Early.”

Proudly serving South Carolina since 1933, Arthur State Bank offers accounts and services to meet a variety of financial needs. To help you achieve all your financial goals, the bank offers in-person service as well as a range of convenient digital solutions. To learn how Arthur State Bank can help you with banking needs ranging from checking and savings to retirement accounts, mortgages, other personal loans and more, visit arthurstatebank.com.

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AnnualCreditReport.com is the only source for free credit reports authorized by the federal government. Every 12 months, you can get a free copy of your credit report from each agency.

Your credit report has your credit history for all of your credit accounts as well as any credit inquiries and public record court information such as collections. In addition, the report provides personally identifiable information such as your name, address, and employment.

Be sure to carefully review all three reports to identify any problem areas that you may need to clean up prior to applying for a mortgage. If there is any incorrect information, follow the reporting agency’s rules to correct it or add a notation to the report to explain the situation.

Your FICO Score is a score combines data from several areas include payment history, the amount owed, length of credit history, new accounts. Many lenders use this score as a guide. This score is not provided as part of the free annual credit report.

Learn more about how your credit score impacts your ability to secure a loan.

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Couple looking over finances

Primary considerations for setting your housing budget require an assessment of your income, debt and current savings for the down payment on the home. The following are generally recommended guidelines; however, you should meet with an Arthur State Bank lender to get personalized mortgage information.

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Couple meeting with lender

The pre-qualification/pre-approval letter is included with any offer you make on a house to inform the seller that you have met with a mortgage lender and you are prepared to make an offer. The letter states that based on certain assumptions, the bank is prepared to lend you up to a specified amount of money for a home mortgage.

When choosing a loan officer, we recommend going local to work with someone who understands your community’s real estate market. This blog on first-time home purchases includes questions to ask your lender that may be helpful when preparing for your meeting.

Helpful Resources:

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Realtor shaking hands with a client

When a house is sold, the seller typically pays real estate commission to both the listing agent and the selling agent. It is extremely beneficial for the buyer to use their own real estate agent. Loan officers can often recommend selling agents in the area; ask your officer about realtor referrals when discussing your loan.

A good realtor will know the local market and can help you find an ideal home based on your budget, location and desired features. During your search, understand that you will most likely need to compromise on some items, so it’s important to identify your critical needs versus your wants.

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Couple searching online for a home

Additionally, when you start with the house search and work backwards, homes can often go off the market while you’re completing steps 1-4. While browsing homes immediately can be tempting, we recommend following these steps in order so that, once you find your dream home, you’ll be well-positioned to take action immediately.

When you find the home you want and you think you are ready to put an offer on it, you will want to make sure you have all the information you need to make a solid offer.

  • Evaluate the neighborhood.
  • Drive by the house at different times of the day.
  • Examine how other houses in the neighborhood are maintained.
  • Consider any potential traffic or other disruptive noise.
  • Is there ample parking for you and visitors?
  • Read the details in any Homeowner Association agreements (HOA fees and rules).

Make sure to do a preliminary check of house details:

  • Check the water:
  • Does it have good pressure?
  • How long does it take to get the water hot?
  • Is it well water or city water?
  • Turn light switches on and off.
  • Open and close doors and windows to make sure they work properly.
  • Review previous utility bill expenses.
  • Consider the property tax bill.

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Family meeting with realtor at new house

When writing an offer contract, be sure to pay attention to all of the details.

Offer Price:

Your agent should do a market analysis that pulls data on recently sold comparable houses. The best comparisons will come from the same neighborhood.

If you are asking for the seller to pay some of the closing costs, remember that this cost plus the sales commission determines the net amount you are offering the seller for the house.

Work with your agent on your negotiation strategy. There are many things to consider, such as how badly you want this particular house, whether it is a buyer’s or seller’s market and an assessment of the seller’s motivation to get the property sold.

There isn’t one best strategy.

Be sure to document in writing everything you want included with the house, such as appliances, etc. Your agent should guide you through the contract step-by-step.

Contingencies:

  • Home inspection.
  • Mortgage.
  • Final walk through (24 hours prior to closing).

Proposed closing date. Typically, this is 30-45 days from an accepted offer.

A good-faith deposit is required for the offer. This is typically between 1-10% of the purchase price of the house. The deposit is kept in escrow until closing and the money is applied to the purchase price of the house at closing. If the house does not close due to one of the contingency clauses, the buyer receives their money back. However, if the buyer decides not to close on the property, the seller may get the deposit money.

Attach your pre-approval letter to the offer.

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Two people in professional meeting

The clock starts ticking for everything documented in the contract, including mortgage application, inspections and closing date.

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Woman advising other woman on mortgage application

You will need to decide which mortgage to select prior to the application.

Plan for the following potential fees:

  • Application fee (many banks and mortgage companies charge an application fee; however, there is not an application fee at Arthur State Bank).
  • Credit check.
  • Appraisal (may be paid at closing).
  • Loan origination fee (paid at closing).

Once you have approval for your loan, make sure you don’t change anything that will impact the status of your mortgage. Banks do a final check on credit and jobs just prior to closing, so now is not the time to change jobs or make another purchase on credit such as a car or furniture.

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Home inspector going over findings with home owner

Depending on the size of the house, an inspection can cost on average between $300 to $1000.

Many real estate contracts specify how problems uncovered in the inspection will be resolved, up to a certain dollar amount. Should necessary repairs exceed that amount, the buyer has the option to cancel the contract without penalty and receive their deposit money back. Another option is for the buyer and seller to renegotiate who will pay for additional repairs.

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Woman happily holding keys to her new home
  • Homeowner’s insurance is required by the lender prior to closing on the loan.
  • Turn on utilities in your name, effective the closing date.
  • Change your address with the U.S. Postal Service.
    • Make moving arrangements.

Three days prior to closing:

  • You should receive your final Closing Disclosure from the closing agency. The final Closing Disclosure shows a column for the seller and a column for the buyer. All closing charges and credits for both the seller and the buyer are documented in the closing statement.
  • Review the closing statement for accuracy prior to coming to closing.
  • The final amount in the buyer’s column shows you the amount of money you need to pay at closing.

The closing office will provide specific payment instructions. Closing funds have become recent targets for cybercriminals. If you are asked to use a wire transfer, call the office and ask to speak to someone you have been working with to double-check the instructions.

Closing day:

In South Carolina, the closing will usually take place at the attorney’s office. Everyone signing for the mortgage must be present to sign the closing paperwork. Make sure you bring the following:

  • Cashier’s check or proof of payment for wire transfer.
  • Driver’s license.
  • Checkbook, just in case there are any additional items that were not on the closing statement.

Be sure to understand this information:

  • How and when you will pay:
  • Your mortgage.
  • Your property taxes.
  • Your homeowner’s insurance.
  • Any HOA dues.
  • Who to call with any questions.

The best practice is to go through the homebuyer’s roadmap in this sequence. However, if you jumped ahead early in your journey, just circle back to address the steps you missed.

Arthur State Bank’s loan officers are closely tapped into local real estate markets and experts at helping clients get what they need on terms that work for them. We also offer mortgage specials for first-time homebuyers.

To start planning your journey to your dream home, try out our mortgage calculator. If you’re ready to talk to a loan officer, contact Arthur State Bank to request personalized mortgage information today. Don’t forget to ask about our first-time homebuyer offer.

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