The Bottom Line
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Fall Smart Money Moves
5 Smart Money Moves to Make This Fall
As the leaves begin to change color, it’s time to start thinking about your year-end money strategy. The fall and winter holidays are close…closer than you think. Use the following strategies, Fall smart money moves, to make the rest of the year count.
- Clean out your closet. You looked into your closet and decided you have nothing to wear. Before you start buying new clothes, pull out your cold weather clothes and give them a good look. Try them on to make sure everything still fits and donate what you no longer wish to keep.
- Add holidays into your budget. This year, the year-end holiday celebrations will likely be virtual rather than in-person, so you’re less likely to have travel expenses, but there’s still a chance you may overspend on gifts and decorations. If you haven’t already made a spending plan for them, do so now. Figure out how much you can afford to spend and stick to that amount.
Save Now, Benefit Later
- Up your 401(k). If your budget can handle it, why not increase your retirement deductions by 1%? The more you save now, the more tax benefits you’ll get, AND the less you have to worry about the future.
- Spend your Flexible Spending Account (FSA) dollars. Use it or lose it. You’ve already saved this money, so don’t leave it on the table. Check your FSA documentation to see what health-related expenses you can use this account for and use those dollars.
Don’t Lose Your Time Off
- Plan to use your vacation days. Using your vacation days is key to living a successful, balanced life. Even if you have a staycation, it’s critical to use your well-deserved days off. If you plan now, you can even save for a weekend getaway before the end of the year. Life is all about balance.
As the weather turns colder, it’s a great time to reflect on the money progress you’ve made throughout the past year and start focusing on small wins to finish the year right.
Are You Ready For The Holidays?
By Jean Chatzky*
Ready For The Holidays?
Every year the folks at consulting firm Deloitte come out with predictions for the holiday shopping season. This year they’re projecting that spending from November to January will increase 1% to 1.5% and – if we get another round of stimulus from Uncle Sam, those numbers could rise. Considering that a recent TransUnion study showed that COVID-19 continues to impact the finances of 52% of Americans (hitting Hispanic consumers and Americans with children at home even harder), I wasn’t expecting that.
Accounting for the rise, Deloitte and others point to the strength of e-commerce, which may really be the gift that keeps on giving. Although just half of consumers did the bulk of their holiday shopping online last year, this year nearly-three quarters say they plan to do so according to CreditCards.com. Millennials are leading the way here with 74% steering clear of brick-and-mortar stores this year, compared with 70% of Gen Z, Gen X and Baby Boomers. Why are they sticking so close to their computers and mobile devices? Convenience is the most cited reason – even topping the desire to avoid human contact among the older folks who are likely to be most at-risk of COVID-19.
Ready For The Holidays
And you can expect this holiday season to be different in a few other ways as well. For instance:
- Halloween’s loss may be the rest of the season’s gain. Every year, about 40% of shoppers start their holiday shopping before Halloween. This year, with a bit of a damper on other Halloween activities (the number of people trick-or-treating and handing out candy is down according to the National Retail Federation, although the number who say they’ll decorate their homes is up), it may begin earlier still. Keep your eye on 10/13/20 – that’s being reported as Amazon Prime Day (although Amazon has yet to confirm) other than saying it will be in October. Whenever it falls, it will likely mark the start of the holiday shopping season.
Don’t Wait To Buy
- If you like it, don’t wait to buy it. Inventories are expected to be leaner this season than in years past – in part because retailers who struggled through the pandemic (in some cases filing bankruptcy) didn’t order as much as they typically would. If you suspect an item is going to go quickly, go ahead and buy it. Then, save your receipt and watch for sales. Typically if the price falls within the next two weeks many retailers will give you credit for the difference.
- Consider curbside pickup. The closer it gets to the holidays, the more you’ll pay for shipping. Fed Ex, the USPS and UPS have all said that they will be imposing surcharges during peak season. Some retailers may absorb some of these charges, but others will likely pass them along to consumers. Do the math to figure out if you’re better off spending the money on gas and time out of your day to pick the item up or having it shipped to your door. Also: Cutoffs for holiday delivery will likely come sooner than in prior years.
Different Gifts Are “In”
- Experiences are out. Cozy is in. Shopping patterns thus far during the pandemic have given us a heads up about where we’re likely to spend this holiday season. With many theaters still dark, travel slow and other in-person experiences still unavailable, chances are good we’ll be gifting more things this season. Beauty products (particularly skincare), anything for the home (because we’re all nesting) and cozy scarves and sweaters (who doesn’t need a little comfort right now) will all be popular gifts this season.
- Let’s bake. Finally, if you are the holiday cookie, bake for the crowd type, you may want to load up on flour and yeast while the getting is still good. We ran out of those things early in the pandemic. You don’t want to run short on them now.
* This guest article, “Are you ready for the holidays?”, is from the “Your Money Blog” in Mid Oregon’s digital banking Credit Savvy resource. “Are you ready for the holidays?” is made possible by Savvy Money.
Local “Bite of Reality” Recognized
The Credit Union National Association (CUNA) acknowledges Mid Oregon Credit Union’s work educating high school students about budgeting and money management. The effort of our local “Bite of Reality” experience has been recognized with a national financial literacy award.
Youth and Adult Financial Education Award
Mid Oregon has been recognized by the Credit Union National Association in the northwest region with an Alphonse Desjardins Youth and Adult Financial Education Award. Mid Oregon’s Bite of Reality program received accolades for teaching high school students about budgeting and money management.
Financial Simulation Using App
The Bite of Reality program app guides students through a day in the life simulation of an adult’s financial responsibilities. Each student receives an occupation, income, partner, child, and possible debt using an app. The student purchases necessities, including rent/mortgage, car payment, groceries, and lifestyle items. They also navigate financial setbacks, such as medical emergencies, surprise bills, and cash windfalls.
Last year, Mid Oregon Credit Union hosted three Bite of Reality events attended by 120 students from Central Oregon schools. The credit union also regularly presents free financial workshops for adults.
In 2020, before COVID-19 changed the education landscape, Mid Oregon presented four additional simulations in three Central Oregon high schools. Three more on the schedule were cancelled. A new virtual version has recently been made available, and should allow the progress to continue.
Virtual Awards Celebration
Mid Oregon Credit Union’s team members (Kyle Frick, Jodie Rogers, Tiffany Dyer – in the photo,
and Wayne Hanson) who worked on the Bite of Reality program
On December 2, eight credit unions from Idaho, Oregon, and Washington will receive regional CUNA awards at the Northwest Credit Union Association’s virtual awards celebration. For additional details, visit this link.
“We are honored to be recognized by CUNA in our region. It’s rewarding to see our community efforts with financial literacy, especially those focused on younger generations, achieve recognition. We look forward to expanding this program to more schools in the future,” says Kyle Frick, VP of Marketing for Mid Oregon Credit Union.
About CUNA
The Credit Union National Association is a national trade association for both state and federally chartered credit unions located in the United States. CUNA provides member credit unions with trade association services, such as lobbying, regulatory advocacy, professional development, and professional services management. For more information, visit cuna.org.
About NWCUA
Northwest Credit Union Association is the trade association representing more than 175 credit unions in Idaho, Oregon, and Washington, with associate members in Alaska and Hawaii. Their support helps northwest credit unions of all sizes thrive for their 7.3 million members. For more information, visit nwcua.org.