PLAN for Holiday Savings on “Black Friday”
Retailers call the day after Thanksgiving “Black Friday,” because the holiday spending that happens that day generally moves their balance sheet into profitability and “the black.” Barbara Stark, director of community development and education at the non-profit American Debt Counseling, Inc., says that smart consumers can think of the day as "green Friday," as in money saved.
"Retailers offer all kinds of deals to kick-start their all-important holiday sales numbers," Stark explains. "The key is to have your own game plan for the day so that you take advantage of the opportunities to save on your holiday shopping without being tempted to spend more than you should."
Stark recommends following this simple four-step system:
Prepare a strategy that puts your financial resources to their best use. Realistically outline your holiday obligations and how much you have to spend. Just like at the grocery store, you’ll spend more at the mall without a list. Next, decide what gifts on your list are “must have” and set your sights on getting them for the best price while they are still available.
Layaway is a good alternative to credit cards for expensive purchases if the store or online site’s fee is less than 10 percent of the value of the items. You can reap the same bargains and enjoy the same selection as shopping on credit as well as the added bonus of knowing it is all paid for when you take it home. Layaway is also a good way to curb impulse buying later in the holiday season by enabling you to buy the gift you really want at a good price. Each store has its own rules and it is important to read the fine print carefully to be sure you understand the fees and cancellation policies.
Avoid using credit. Shoppers spend 30% more on average when shopping with credit cards rather than cash. Also think twice before opening a new line of credit for a discount on that day’s purchases since any fees associated with a new credit card can end up costing you more than the money you're saving. Cash, checks and debit cards are the best choice, but if you must use credit, choose the card that gives you the lowest interest rate and most benefits, such as reward points or extended warranties.
Navigate the deals. In their efforts to get you into their stores and not the competitions', retailers advertise their sales. Many post them online as well as place ads in the paper. There are also internet sites devoted to announcing Black Friday sales in advance. Some stores open early or even on Thanksgiving Day and you should begin looking for the deals at the start of Thanksgiving week to be ready to put your holiday shopping and savings PLAN into action.
