11/18/2015
Citizens Bank offers tips to help consumers save money during the holiday shopping season
Enjoy the holidays more by being smart about gift buying
Providence, R.I. - Citizens Bank is offering holiday spending and budgeting tips for consumers during this busy shopping season. These guidelines can help consumers manage their money and prevent the accumulation of budget-busting household debt.
“The best way to approach the holidays is by planning ahead,” said John Rosenfeld, Head of Everyday Banking for Citizens Bank. “Planning can prevent overspending and unplanned debt. It is easy to break the family budget by getting swept up in the excitement of the holiday season. Developing a plan and a budget will pay dividends all year long – not just during the holidays.”
To help consumers manage their money, Citizens Bank suggests the following seven guidelines:
1) Make a list and check it twice
Make a list of all of the people you plan to buy gifts for, with an estimated spending budget for each person. Total the amount to see if you have a realistic spending plan, or if you need to revise and re-evaluate. Remember travel and shipping expenses, and make sure to add in a little bit of extra money for unforeseen or surprise costs.
2) Open a holiday spending account
Opening a separate, no-fee checking account for the sole purpose of holiday spending is a good strategy. While it may be a little too late for this holiday season, it’s the perfect time to be ready for next year. Deposit into the account only what your budget allows, and be sure to use that debit card when holiday shopping to ensure you are only spending what you have set aside for the holidays. This will help you avoid placing large purchases on credit cards you will just have to pay off later.
3) Make a plan to pay off holiday spending debt
Many people use credit cards for holiday spending to earn cashback or rewards points, but that really only makes sense if you pay it off quickly. If you plan on paying for your holiday costs with a credit card (e.g. gifts or travel), set a plan to pay off your debt by a specific date. This will force you to budget for the costs in the first months of the year, ensure you don't pay interest on the credit debt, and clear off the debt soon so it's not a holiday debt hangover for months on end.
4) Be Wary of Store Credit Card Deals –Many stores will give you a 10-20 percent discount on your purchase if you open a card with them. This is fine, if you have strong credit and good discipline about paying it off. However, you must remember to pay off that debt before the end of the grace period or you could end up paying back that discount and then some. Also, store credit cards typically carry much higher interest rates than credit cards that you get from a bank, so if you will need to finance your holiday shopping, you should shop around and find a credit card that provides a low introductory rate. A low rate card will enable you pay down more of your balance instead of the interest.
5) Research store layaway options
Many major retailers, such as Walmart, Best Buy, and Toys R Us offer store layaway. For big ticket items you may not be able to afford all at once, consider buying them now on layaway. You can reserve the item now and make payments over time leading up to the holiday season. Once the item is paid off, you can pick it up. Stores typically charge $5-10 to hold and reserve the item, but this can save you a significant amount of money compared to using a credit card and being charged interest.
6) Follow your favorite retailers on social media
Most retailers are active on social media, and give their followers exclusive deals and advance notice of sales. Be one of the first to know about sales, and make sure you aren’t missing any deals at stores where you frequently shop.
7) Start shopping now
Getting a jump start on holiday shopping now will help avoid product markups later in the holiday season. Buying early also helps spread out spending to avoid multiple expenses at once, and gives you plenty of time to wait for the perfect deal.
To learn more about Citizens Bank, customers can call the 24/7 customer contact center at 1-800-922-9999, Like the bank on Facebook, follow the bank on Twitter or visit the Citizens Bank website.
About Citizens Financial Group, Inc.
Citizens Financial Group, Inc. is one of the nation’s oldest and largest financial institutions, with $135.4 billion in assets as of September 30, 2015. Headquartered in Providence, Rhode Island, Citizens offers a broad range of retail and commercial banking products and services to individuals, small businesses, middle‐market companies, large corporations and institutions. In Consumer Banking, Citizens helps its retail customers “bank better” with mobile and online banking, a 24/7 customer contact center and the convenience of approximately 3,200 ATMs and approximately 1,200 Citizens Bank branches in 11 states in the New England, Mid‐Atlantic and Midwest regions. Citizens also provides mortgage lending, auto lending, student lending and commercial banking services in select markets nationwide. In Commercial Banking, Citizens offers corporate, institutional and not‐for‐profit clients a full range of wholesale banking products and services including lending and deposits, capital markets, treasury services, foreign exchange and interest hedging, leasing and asset finance, specialty finance and trade finance.
Citizens operates through its subsidiaries Citizens Bank, N.A., and Citizens Bank of Pennsylvania. Additional information about Citizens and its full line of products and services can be found at www.citizensbank.com.
