Turn spending into savings with cashback
Consider cashback programs to recoup some of the money you spend on gifts over the holiday season. “These websites and apps will pay you cash back into a dedicated account—usually after a waiting period—if you follow the links and instructions,” says CommBank personal financial expert Jess Irvine.
The money you get will often be a percentage of the amount you spent with an eligible brand or service or a set amount for reaching a spend threshold. CommBank Yello offers cashback on purchases such as groceries, fuel and entertainment, as well as products from retailers.
Make the most of points
Many retailers offer reward schemes for regular customers. You might also be able to grow your points balance if you make everyday purchases or buy gifts using a credit card with a rewards program, says Irvine. “Banking your points can create a handy savings pot to draw on when needed.” CommBank Awards points, for example, can be used to purchase everything from cookware and smartwatches from Myer to gift vouchers, too.
Spread out the cost
Buying a big-ticket item can create financial stress in the holidays so consider spreading out the cost to ease some of that pressure. Using an installment plan like SurePay is an option if you have an eligible credit card. These purchase plans allow you to set up repayments at zero per cent interest for recent buys of more than $100, with a small fee.
Take advantage of sales
Sales events start long before Boxing Day and they offer a great opportunity to buy the gifts you want for less. You can make some big savings during Black Friday on 28 November and Cyber Monday on 1 December. Just be sure to approach the sales strategically. “Don’t browse,” warns Emma Edwards, a financial behaviour specialist and founder of The Broke Generation. “Search for a specific item on your list, add it to your cart and then move on to the next item.”
Plan ahead and make a list
Shopping for gifts during the holidays can spiral fast, says Edwards. “You might be stressed. You’ve heard the same Christmas songs over and over. Maybe you can’t find what you want—or don’t really know what you want—so one purchase leads to another... and another. Before you know it, you’re on a spending runway.” To stay in control and keep the season’s chaos from taking over your bank account, plan ahead. “Go gift shopping with a list and include backup gift ideas to avoid that runway.”
