How many of you have thought, “I’m going to be better about my budget this holiday season?” C’mon, raise your hands, we’re guilty of it too. This is a noble mindset, but then your distant cousins are coming into town, and they’ll need to be fed, and then your daughter is bringing her new boyfriend to the get-together, and you can’t give him nothing, and soon, your budget is cooked more than the Thanksgiving turkey.
So, yes, budgeting is smart and is the way to go; however, we know that at this time of the year, things happen, and they happen fast. That’s why your Greenville Federal Credit Union friends have put together some tips and tricks to maximize your cash flow and shop a little smarter this Holiday Season.
Use those points
Question: Do you have a credit card? Follow-up question: Do you have a credit card that rewards you with points for your purchases? Do you know your current balance? Many people don’t realize they have been racking up points each time they swipe, and unless you plan on skipping Christmas to go on a tropical vacation, those points are collecting dust. You could be using these points for goods or services that could make your holiday shopping just a little bit easier. Most financial institutions offer multiple ways to check your point balance, either online or over the phone.
Use peer-to-peer apps, carefully
Peer-to-peer payment apps have revolutionized the way we send money to our friends, families, and even vendors. Now we can complete transactions with a flick of a finger, the push of a button, or the tap of a phone. This has also led to the rise in people getting scammed out of their money. We’re by no means saying don’t use these apps; we’re just cautioning you to be 100% certain you know where your money is going, especially when making charitable donations. Yes, even charities can accept Venmo these days, and you can bet there are people out there pretending to be these non-profits waiting to get their hands on your money. So, before you hit “send,” be sure you know who you’re sending your money to.
When it comes to these apps, we also advise against leaving your money sitting in them for too long. If Venmo were to disappear, can you guarantee your money would still be there?
Be smart about shop now, pay later
Klarna, Affirm, Afterpay, you may have heard these words, but might not be sure what they mean. They are all services that allow you to buy something now and then pay for it later. If you’ve done any online shopping in the last year, chances are you’ve seen this option. These platforms allow you to purchase goods or services on an “interest-free” four-month plan. Yes, this plays into our desire for instant gratification, but it can also be dangerous. If you aren’t on top of your cash flow, you could miss a payment. While that doesn’t seem like a big deal, this is the equivalent of missing a credit card or loan payment. Not only will you be hit with a fee, but the missed payment will also be reported to the credit bureau.
On the flip side, you get no benefits from the arrangement, as on-time payments are not reported to the credit bureau. We know that some of you reading this are going to utilize a buy now, pay later service this holiday season, and we just want you to be safe. Our recommendation? Use a low-interest credit card instead. You’ll boost your credit and possibly earn points in the process.
The gift for the person who has everything
Looking for a gift that fits everyone? Greenville Federal Credit Union offers VISA Gift Cards. And as an added perk, members of the credit union don’t have to pay an activation fee.
It’s never too early to start planning for next year
Believe it or not, some people are already done with their holiday shopping, and to those people we say, “teach us your ways.” No matter if you’re a get-it-done-before-Labor-Day type of person or a wait-until-6:30-PM-on-Christmas-Eve type person, it’s never too early (or too late) to start planning for next year. While you’re planning, wouldn’t it be great if your money could grow in the process?
With a Liquid CD from Greenville Federal Credit Union, you can lock in a great rate for a 28-month term. If you’re doing the math, you know next year’s holiday season is less than 28 months away. That’s the magic of the Liquid CD. You can withdraw 50% of the initial deposit over the 28-month term, penalty-free.
We’re here to help
Finances aren’t always simple. There are always new terms and new rates to consider and explore. If you ever need help, don’t hesitate to contact us at 800-336-6309 or visit one of our branch locations.
Each individual’s financial situation is unique, and readers are encouraged to contact the credit union when seeking financial advice on the products and services discussed.