Smart Finances: Gift Giving

It’s the season of giving gifts – which means (sometimes) spending a little too much money on the people you love the most. When it comes to purchasing expensive gifts for family or friends, it’s easy to get caught up in the “buy now, pay later” options that exist in almost every large retail chain and online stores offer. While this can sometimes be a viable option for consumers, there are many downsides of this way to pay. 

In general, it’s a bad idea to carry debts for longer than you need to. Paying off a TV you bought for your spouse this holiday season is far less important than that monthly student loan. Think about the other payments you have to make and really consider how important that one gift is in the long-term. 

Additionally, there are some companies that will set up an automatic payment for the purchase with interest on your debit or credit card. If something terrible were to happen and you needed every last cent in your bank account, that third monthly payment on the TV could put you in debt. 

Overall, you must be mindful about purchasing luxurious gifts without breaking your bank this holiday season. Often times there are major sales throughout the year such as Black Friday and Cyber Monday, as well as some Day After Christmas sales. Talk with the person you want to purchase this luxury item for and work together to gift them exactly what they want without harming your personal finances. 

 

Source: https://www.nerdwallet.com/blog/credit-cards/buy-now-and-pay-later/

 

Written by: Cady Ruth Stoever, G.S. Woods Financial Solutions LLC, Marketing and Communications Associate

Check the background of this financial professional on FINRA's BrokerCheck
Check the background of this financial professional on FINRA's BrokerCheck