Navigating Labor Day Shopping Amidst InflationNavigating Labor Day Shopping Amidst Inflation Despite inflation easing slightly, daily finances remain a challenge for many middle-class Americans. As Labor Day approaches, experts offer strategies to help combat inflated prices and save money during shopping sprees. Plan and Anticipate * Create a shopping list to prioritize needs and avoid impulse purchases. * Consider upcoming holiday events and make gift purchases during Labor Day sales. Compare Prices * Explore prices across various channels (in-store, online, in-app) for the best deals. * Use price comparison tools or consult retailers’ flyers and websites. Consult Your Budget * Ensure that purchases align with your financial goals and avoid credit card debt. * Consider the total cost of the item, including interest on purchases made with credit. Focus on Seasonal Items and Mattresses * Take advantage of end-of-season sales on summer items like clothing, sunscreen, and outdoor essentials. * Explore mattress sales as companies typically offer deep discounts towards the end of their fiscal year. Buy in Bulk * Labor Day is an excellent time to purchase everyday items and groceries in bulk to save money. * Stick to necessary items and utilize stores promoting bulk discounts. By implementing these strategies, middle-class consumers can effectively budget and combat inflated prices during Labor Day shopping. Careful planning, price comparisons, and a focus on essential purchases will help alleviate the financial burden and make the holiday a more enjoyable and affordable experience.
Inflation is slowly coming down. According to the latest Consumer Price Index data, inflation was 3% in June, down from 3.3% in May. And yet higher prices continue to take a toll on the wallet.
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Consumers have indeed been hit by higher prices in their daily lives — whether it’s at the grocery store or through higher mortgages and rents. And for many middle-class Americans, navigating daily finances has become a challenge.
Labor Day is right around the corner on September 2, marking the end of summer and the beginning of back-to-school season. It’s also another reason to shop and splurge, thanks to the many stores hosting Labor Day sales.
“Even though inflation has cooled, many Americans have not yet felt the effects of this change,” said Scott Lieberman, founder of Touchdown Money. “Prices are still high, so even though inflation is stable, it is still difficult to make purchases.”
GOBankingRates’ recent Summer of Savings survey found that 27% of Americans plan to spend up to $50 on their Labor Day plans. Another 14% plan to spend between $100 and $199, 4% plan to spend between $300 and $399, and 4.4% plan to spend more than $500.
If you’re worried about inflation eating away at your holiday budget, you’re not alone. GOBankingRates reached out to experts for ways to combat inflated prices and tips to help you save when you’re ready to buy things this Labor Day.
Plan your shopping and think ahead
Tanya Peterson, a consumer finance expert and vice president of brand at Achieve, says Labor Day sales often offer great deals and can be very tempting.
However, she also warned that it’s easy to go overboard and buy more than you actually need when you only go shopping, whether in physical stores or online.
“Instead, think about and make a list of what you want to buy,” Peterson suggested. “Take the time to distinguish between wants and needs.”
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Another tip from her: think ahead, because the holidays are only a few months away.
“This is a great time to think about your gift-giving and celebration plans,” Peterson said. “Make a list of the people you want to give a gift to, ideas for gifts, and a price limit.”
And if you find something that meets your criteria and fits your budget during the Labor Day sale, you could save money, time, and stress this holiday season.
“If you know what other events you need gifts for this fall — birthdays, weddings, other festivities — you might find some fun things,” she added.
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Compare prices
Brett Narlinger, senior vice president of global commerce at Blackhawk Network, emphasized the importance of shopping across channels: in-store, online and in-app.
“Marketers are well aware that the economy is driving people to seek out the best deals on everyday products and services, and most retailers run regular promotions, especially around Labor Day and the start of the new school year,” Narlinger said.
What many shoppers don’t realize, however, is that different shopping channels often offer different deals, even from the same retailers.
“Taking the time to compare prices across channels and even between retailers will help with your budget and ensure you get rewarded for what you buy,” Narlinger adds.
Consult your budget
According to Peterson, every household, large or small, should keep a simple budget so you know exactly what’s coming in, what’s going out, and how far you’re going toward achieving the goals you’ve set.
“Whether that’s to buy a new appliance or mattress, or to retire one day,” she said. “No matter how great the sale is, it’s not worth going into credit card debt for.
“The great deal on the refrigerator or bike isn’t a great deal at all if you end up paying more than the purchase price in interest. And with credit card rates now approaching 25%, that can happen quickly.”
Search for summer items and mattresses
Lieberman recommended sticking to summer items. Since Labor Day marks the end of the season, that also means those seasonal items need to go.
“If you buy them now and enjoy them in September and October, you will save a lot and be prepared for next summer,” he said.
The GOBankingRates survey found that many consumers plan to do just that. Sixteen percent of respondents plan to buy clothing items this Labor Day, such as shorts, swimwear and flip-flops. Meanwhile, 13 percent plan to buy summer essentials like sunscreen, beach towels and pool accessories, and 18 percent plan to buy outdoor essentials.
Lieberman also suggested looking into deals on mattresses.
“Mattress companies see their fiscal year end in the fall, so sales often come in big time on Labor Day,” he said.
Only 4% of Americans say they plan to buy a mattress this Labor Day. However, the survey shows that such purchases can be very expensive. That’s why it’s always a good idea to take advantage of deals.
According to Consumer Affairs, budget mattresses can cost between $50 and $500, while more expensive mattresses typically start at $1,800 and can cost as much as $4,000 (or more).
Buy in bulk
Labor Day is also a great time to buy everyday and grocery items in bulk. And according to the survey, food is the number one item people spend money on.
The survey found that more than half of people who plan to spend money on Labor Day plan to spend it on food: 53.75 percent.
“This is something you can also prepare for, as many stores will be promoting their Labor Day deals in advance,” said Erika Kullberg, attorney, personal finance expert and founder of Erika.com.
“Depending on what you buy, you’re likely to find some big discounts during this period, so keep your eyes peeled for a bargain.”
Because many people end up overspending when buying in bulk, Kullberg advises being careful about sticking to your budget.
“Stick to items that you know you’ll use completely. If it’s something that you and your household use really regularly, you’ll often find better prices per unit at places like Costco, which can help you maximize your available budget,” she added.
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This article originally appeared on GOBankingRates.com: 5 Ways the Middle Class Can Fight Inflated Prices This Labor Day
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