by Emily Hechler 
If you’re anything like me, you’re counting down the days until Christmas. I look forward to this joyous season not only for the time spent with my loved ones but also the chance to challenge myself and shop wisely for the holidays. Whether you plan ahead like me or wait until the last minute and shop on Christmas Eve, knowing how you are going to pay for your holiday shopping can reduce the stress the long lines and shipping delays can cause. There’s no need to put your personal finance goals at risk. Check out these tips on paying for your holiday shopping.
Online Holiday Shopping Safety
Shopping for your holiday purchases is a convenient way to track who you’ve bought gifts for and save time by having them delivered to your door. However, the convenience can come at a cost of putting your personal information at risk. Follow these tips to safely shop online.
Shop on a secure website. If you’re in a rush, it might be easy to overlook the dangers of shopping on an unsecure website. When you shop online, look for the padlock symbol. The symbol means that the website has extra security, so it’s a more secure way for you to shop. Check the URL to see if it starts with “https” instead of “http.”
Check your Wi-Fi connection. While free public Wi-Fi is a convenient way to get some online shopping done, it’s better to make your purchases on your own Wi-Fi network or cellular network instead. Public Wi-Fi is easier for hackers to access than home Wi-Fi or a cellular network. If you make a purchase using a credit card or check your bank account while on public Wi-Fi, you’re putting that information at risk for getting compromised.
Update your passwords. Hackers are getting smarter. They can potentially steal your username, password, and other sensitive information from a retailer’s database that you recently shopped online at. A good rule of thumb is to update your passwords every 90 days, and don’t repeat passwords across accounts. That way, if a hacker were to get your information, it would be outdated and useless to them.
You can find out if passwords in your Google Account may have been exposed, are weak, or are used in several accounts. Click the three dots at the top of your Google browser, go to Settings > Passwords & autofill > Google Password Manager > Checkup. If you have any compromised passwords, change them quickly to keep your accounts more secure.
Use anti-virus software. If you shop from a laptop or computer at home, make sure you have an up-to-date anti-virus software. Scammers can send spam emails disguised as receipts to get you to click on it. This could result in a virus on your computer that gives the scammer access to your information and even break your device. Anti-virus companies regularly release updates to provide more secure systems that would catch such scams and warn you before you take an irreversible action.
Check your bank accounts. With online and mobile banking, you can easily monitor the activity in your account to make sure that all the charges in your account are legitimate. You can even set up alerts to warn you of suspicious activity. If you catch fraudulent activity, contact Alltru so we can help.
Credit Card Rewards Tips
If you’re shopping for gifts online, you’re likely paying with your credit card. Instead of charging all your purchases and paying them off at a later date, take advantage of the rewards you’ve earned over the year from your everyday purchases. Here are some ways you can use your credit card rewards points.
Get cashback. If you have an Alltru Signature Rewards Visa, you can earn points on your everyday purchases all year long and then redeem those rewards to offset the cost of buying gifts in cash. Plus, as a cardholder, you have access Roadside Dispatch 24/7 in case you have car trouble while you’re out doing your holiday shopping.
Buy a gift card. Take the stress out of finding the perfect gift by purchasing a gift card. I love getting gift cards for holidays because I can pick out whatever I want, when I want it. Many would rather receive a gift card and do their own shopping than be given a gift they’ll forget about in a few weeks. With a gift card, your friend can purchase whatever they desire, so it’s always a win.
Eat out. Eating out is a great way to meet friends and enjoy dinner without cooking while celebrating the holidays. Or, use the rewards to buy catering from a local chain and host the celebration at your house. If you’re feeling extra festive, buy some decorations and tableware with those points too.
Stick to the basics. You can use reward points to buy some household essentials like laundry detergent or light bulbs. These necessities are not fun to buy. I’d rather use my hard-earned money to buy something fun, not something for survival or basic hygiene. Create a list of some basics that are good to have on hand. Then, make your purchase from one store with your reward points.
Gift a charity. Local non-profits and charities are often in need during the holiday season. You can use your reward points to redeem gift cards or purchase other needed items for the organization. Many charities have wish lists or suggested donations online, so you know what to buy that would be helpful.
Save on your holiday traveling. If you’ve been saving your points for a while, you can redeem your rewards points for travel expenses. Plane tickets, hotel rooms, and gas station stops can be purchased with your rewards. Since you know the holidays are coming, redeem your points a little earlier in the year to secure a flight or hotel at a more reasonable price before the cost increases later in the year due to the high demand and volume of travelers.
Holiday Budgeting Tips
While getting the most out of your credit card is a great way to take advantage of the perks of being a cardholder, budgeting tips can help you not overspend this year. I often find myself setting a budget in my mind and then overspending for several people. Sure, it’s only $10 here and there, but it adds up quickly. Follow these tips to save money during your holiday shopping.
Write it down. Documenting your anticipated expenses can help give you a realistic view of how much money you’re going to spend over the next couple of months. Don’t just think about the cost of gifts, consider the extra food you’ll purchase for family gatherings, gift wrapping supplies, and your annual matching Christmas pajamas. After you write out these categories, get specific so you know how much you’re willing to spend on these different purchases this year.
Reevaluate your list. You might find that you need to adjust some areas. You might have underestimated the cost of travel and have significant extra funds in your food category. When you reevaluate your list, consider how you can cut the costs in each category to save even more. Staying in a family member’s house when you travel can save you hundreds of dollars. Buying groceries in bulk can save you money too if you plan your meals ahead of time.
Keep an open mind. Even though you have your list and your budget, you don’t need to religiously stick within the categories or even individual items. Give yourself some grace to make adjustments as you shop. If you’ve found the perfect gift for you sister and it costs less than you expected, put the extra money towards a nicer gift for your husband. Please note that this is not permission to ignore your budget and overspend! Sticking as close as you can to the total you’ve allocated for this season will allow you to keep your personal finances in check.
Save through sales. Shopping on Black Friday and Cyber Monday are great opportunities to finding deals on items you planned on purchasing. As you get closer to Christmas, the sales start to disappear. If your gathering isn’t until a few days after Christmas, you can wait for a post-Christmas sale. Yes, the stores will still be crowded the week after Christmas, but you could significantly save.
Holiday Shopping Payment Options
With these shopping tips in mind, you’re probably ready to run to Target or open the Amazon app. Before you start spending though, have you thought about how you’ll pay for your purchases? Before you start shopping, take a moment to consider the payment methods you can use to cover the cost.
Swipe your low-interest credit card. Using a low-interest credit card can be a convenient way to shop now and make your payments in few weeks. If you find a low-interest credit card with rewards, you’ll reap the benefits of potentially improving your credit score and earning more rewards for next year’s purchases. However, if you have a poor credit score and often carry a balance into the next month, try to avoid this option.
Get a personal loan from Alltru. If you want to pay off your holiday expenses over the next several months, consider getting a personal loan from Alltru. Making your minimum payments on time for your personal loan is another way to increase your credit score. We don’t require any collateral, so you can get approved quickly for your loan. On the other hand, if you already have a significant amount of debt, don’t take out another loan.
Use interest-free store financing. If a large purchase like a diamond ring for your future fiancé or a new sectional for your living room are in your future, interest-free store financing could be a great option for you. This option allows you to pay back your purchase each month without interest for a predetermined time period. Some stores even take an additional percentage off the total when you choose this option. Be careful to make your payments on time though, or you’ll be stuck with hefty fees to pay.
Open a Holiday Savings account. If you don’t already have a Holiday Savings account, you can’t take advantage of the perks this year. However, you can open one now to start saving for next year’s holidays. If you already have a Holiday Savings account, you’re in luck. With a Holiday Savings account, all the money you put in the account over the year will automatically transfer into your Checking account in mid-October. Now you have your holiday shopping funds ready to go!
Holiday Savings Account Benefits
With a Holiday Savings account at Alltru, you can easily save for your holiday purchases, no matter the time of year. You can set up a payroll deduction, recurring deposit, or throw in some money sporadically to fund the account. Opening an account is easy. Here are some reasons why you should open a Holiday Savings account now to prepare for next year.
Save with a purpose. In any budgeting method you follow, there is always the category of savings. Instead of saving for anything that could happen in a hypothetical future scenario, you can save with a purpose. Saving with a goal in mind can help you stay motivated to keep making your contributions.
Deposit in a designated account. A perk of having an account designated to your holiday savings is that you know the money in this account is just for your holiday shopping. When all of your savings are in one account, it can be tempting to transfer money to your Checking account and use them for something else. By keeping your holiday shopping funds in a separate account, it’s easier to avoid using it for the wrong purpose.
Automatically make smart money moves. With a Holiday Savings account, you can easily set up payroll deductions or automatic transfers at specific times each month. This makes saving money simple. Since you can automatically save year-round, you likely won’t notice the money that you aren’t spending. When mid-October arrives, the money you’ve saved will automatically transfer to Checking, funding your account just in time for your holiday shopping.
Avoid credit card debt. Since you’re saving year-round, you can budget ahead so you’ll have enough funds to pay for all of your holiday purchases without needing your credit card. Saving $75 a month from January through October means you’ll have $750 waiting in your Holiday Savings account! Since the money you saved in your Holiday Savings account is transferred to your Checking account, your shopping can be done on your debit card instead.
Conclusion
Hopefully you’ve been able to benefit from these holiday shopping tips. In order to pay for your holiday shopping, you must determine how much you are willing to spend and who you are going to buy gifts for this year. Using points from your credit card is a great way to reduce your holiday shopping costs. By using your credit card wisely, you can earn points for next year’s shopping, but make sure you follow safe online shopping habits. If a credit card isn’t the right move for you, try other financing options instead. Since budgeting and saving is on the mind, open a Holiday Savings account to get yourself ahead for next year’s shopping. Happy Holidays from your friends at Alltru!
