Supply chain issues are causing more people to focus on the holidays.
LINCOLN, Neb. (KLKN) – Supply chain issues are causing more people to focus on the holidays.
Financial professional Tim Kulhanek of Stonebridge Insurance and Wealth Management explains how you can prepare your finances for the start of the buying season.
Why are we seeing this rush to start shopping for the holidays now?
- A recent study found that businesses will have to spend an additional $ 223 billion on the cost of goods due to supply chain issues, postal service delays and staff shortages; these costs could be passed on to consumers
- Everything from toys, books, bikes, new clothes and more has been the subject of shortages, backorders and delays.
- The American Christmas Tree Association is asking people to get their trees early due to weather issues in the Pacific Northwest
How will the holiday shopping season be different this year?
- The holiday shopping season is already underway; big box retailers have already started offering Black Friday deals
- Americans are expected to spend 7% to 9% more than in 2020, for a total of about $ 1.3 trillion
- Online sales set to increase further, with experts forecasting an increase of between 11% and 15% this year compared to 2020
How to prepare your finances in advance during this holiday season?
- To avoid the anxiety of finding the perfect gift during a year filled with supply chain issues, you and your wallet will be better off if you start now; the earlier you start, the less you will have to spend on expensive last minute shipping costs, and the more likely you are to take advantage of early deals
Have a plan
- A successful shopping season starts with creating a spending plan, especially since sales start early and there could be less that most people are also used to.
- Be as detailed as possible; look at your budget to determine how much you can afford to spend this holiday season, then list each person you need to buy gifts for and how much you want to spend on them
- Don’t forget to budget for extras, like shipping, wrapping paper, and decorations
- Make sure to keep an eye on shipping times so you don’t pay extra; Kulhanek has a link on his site