Please ensure Javascript is enabled for purposes of website accessibility

Tag: holidays

Post-holiday Credit Card Debt: How To Dig Out and Get Ready for a New Year

According to a recent U.S. News & World survey, Americans spend on average between $500 to $1,000 during the holiday season, with nearly 42% expecting to go into debt to pay for their spending in November and December. With the holiday season now over, many Americans are struggling with the aftermath of debt and a desire to get rid of this not-so-merry pile-up as fast as possible. Here are a few ways you can confront your post-holiday debt and set yourself up for a financially strong new year. 

READ — 2023 Will Be the Year of the Earndown: What Every Colorado Small Business Owner Needs to Know 

Take Inventory of the Holiday Debt Damage 

Once the final present has been opened and the bills start to roll in, it is time to begin tackling the debt you have accumulated throughout the holiday season. First, assess the impact on your financial picture, including total debt amounts and monthly expenses. Gather every receipt and review your bank account transactions to determine how much money you spent and the amount of debt you owe. Next, make a list of your payment due dates, minimum payment amounts, current interest rates and an ideal timeline of when you would like to have your debt paid off. 

Find a Payment Strategy That Works Best for You

It is very important to make your credit card payments on time, regularly check your credit score and ensure your credit report is reflecting fiscal responsibility and care. You can consider following the avalanche or snowball strategies to tackle your holiday credit card debt. The avalanche strategy focuses extra payments (after you have paid the minimum amount due on all of your outstanding accounts) toward the bills with the highest interest rate. The snowball strategy directs you to place extra funds toward paying off the smallest debt balance first, then working up to the largest balances as you pay them off. Whichever strategy you choose, be sure to stick with the plan and continue to make progress on your holiday debt payment goals. 

Create a Realistic Budget for the New Year

Now that holiday spending is over, it is time to either build or re-evaluate your budget for the new year with your debt in mind. Your budget should be tailored to your specific financial needs and have your annual income, the amount you are spending or have spent, and how much you have put into savings all included. Then, look at how much money you will need to cover your recurring living expenses and the amount you would like to put away for both short-term and long-term savings goals. 

Cut Back on Unnecessary Expenses and Save Money

To recover from your holiday debt quickly, you will need to slow down your spending on items or experiences you do not need right now, such as the latest tech, reoccurring monthly subscriptions, discretionary shopping, eating out and impulse buying. These temporary lifestyle changes will allow you to have more money to set aside for savings, while you continue to recover from your holiday season expenses. These financial belt-tighteners can help you quickly pay down the new debt, and set you up for a strong financial year.

READ — Our Economy in 2023: What to Expect

Get Ahead of Next Year’s Holiday Shopping and Spending

To avoid post-holiday debt next year, plan for the expenses you know will come around again and save for them. For instance, if you typically travel, purchase gifts or host holiday gatherings, you can plan for those costs in your budget month ahead of schedule. This would be a great time to consider opening up a savings account dedicated to your holiday spending needs. In addition, to offset the end-of-year spend, you can prioritize your anticipated holiday expenses and spread your shopping out throughout the year. This helps ensure you do not experience a huge blow to your bank account right before the New Year. 

The holidays and the financial aftermath of gift-giving can be a stressful time but getting a handle on your debt does not have to be. By following these tips, you can enter the holidays financially confident and avoid the post-holiday debt blues. 

 

Jim Caniglia 1b149035Jim Caniglia is the SVP and consumer credit risk director at UMB Bank.

The Serious Business of Shopping Small

We all know the benefits of shopping small – it supports members of our own community, puts money directly into the local economy, and is the best way to discover unique, not-found-elsewhere gifts. Over the past two years, we have also learned both how essential these businesses are to our communities, and how critical it is for us to support them.

But small business owners also understand the significance of making the shopping experience a memorable one, in hopes that customers return multiple times; and they are investing more time, effort, and budget than ever before in creating those meaningful interactions. Cultivating customer loyalty is as critical as attracting the attention of new customers; and these initiatives accomplish both goals. As corporate marketing gets louder, bigger and more prevalent, small businesses must continue to be creative in their efforts to attract and retain customers. Below are several ways to create unforgettable experiences that extend beyond simply shopping for items on a list and keep people coming back.

Capitalize on the Personal Connection

One of the key differentiators of small businesses is shoppers are very often interacting with the business owners themselves, people who have deep knowledge of the products they are selling – which allows for a more personal and meaningful shopping experience than relying on online reviews or big discounts.

But most small businesses are known for their personal touches and the relationships they build with their customers, so what else can they do keep their stores top-of-mind for consumers?

Enter: placemaking.

READ — 5 Tips for Overcoming Customer Service Obstacles as a Small Business

Become a Destination – Not Just a Stop

Creating a sense of place within your own community, a destination people are proud of, feel welcome in and want to return to, possibly with friends and family, has become increasingly popular among small businesses. Bonus if they can partner with other small, locally-owned spots to leverage the placemaking feel.

We have embraced placemaking at Stanley Marketplace: in addition to the gifts and services offered by our boutique retailers, local restaurants, fitness studios, salons, and service providers, we offer free events and creative activations to keep the community engaged, interested and excited to visit again and again.

Give Back to The Community That Gives to You

Of course, giving back to the community is a priority to small business owners and employees. They want to reflect and return the support they receive from their neighbors back into their own local communities and continue to strengthen those ties.

The benefits of providing unique, curated experiences for consumers who shop small are significant. You create memorable traditions for neighbors and community, turning your business into a must-visit holiday destination while emphasizing the importance of shopping small. As a result, at Stanley Marketplace, we welcomed more shoppers than any past holiday season in 2022 — a refreshing difference from the relative quiet of the past two pandemic-affected years.

As small business owners and supporters, the goal in implementing these creative initiatives is to create return guests who are inspired to make your business a treasured part of the holidays each year, supporting their neighbors and community along the way. Through these efforts, we also hope to remind people to shop small and local year-round.

 

Allyson Fredeen
Allyson Fredeen

Allyson Fredeen is the General Manager at Stanley Marketplace in Aurora, CO, a community gathering place which houses 50+ independently-owned businesses including retail shops, restaurants, bars, fitness, services, and classes.

How to Prepare Your Finances for the Holiday Season

The year’s closing months are an ideal time to be proactive about your finances and set yourself up well for the holiday season and the new year ahead. For many, financial concerns often rise with expectations to spend on gifts and entertaining family and friends this time of year, and this pressure may feel amplified given the uncertainties of today’s economy. According to a recent survey by Deloitte, Colorado consumers plan to spend 12% less compared to last year.  While worrying doesn’t solve much, having a plan to manage financial challenges can help ease the stress.

READ — On The First Day Of Christmas, My True Love Gave to Me: A 10.5% Price Hike (PNC CPI)

Here are some tips for tackling your money stress and taking control of your finances during the holiday season from Bank of America’s Better Money Habits®.

Determine a Goal and Create a Budget for it.

Write down everyone you plan to give gifts to – from your nearest and dearest to your in-laws and the mail carrier. Then put a dollar figure next to each name. Setting price limits help you keep your holiday budget on track. For big-ticket items, start saving in advance and utilize your bank’s automatic transfer feature.  And keep in mind costly shipping fees – keep watch for special “free shipping” days.

Make Your credit card work for You

Many credit cards offer benefits from purchase protection and free credit score information to loyalty points and monetary rewards for everyday purchases like groceries and gas that help stretch your dollars further. Review what benefits your credit cards may provide. However, it’s essential to manage your credit responsibly and pay your credit card bill on time and in full each month whenever possible.

Make the Most of Your Income

When money is tight, it’s important to make the most of the income you do have. Know that small steps add up. For example, you may not be able to cut any one expense by $500 a month, but you may be able to identify five that you can cut by $100 each. Identify nonessentials you can scale back, such as entertainment and dining out, and do more free activities. And if you see that perfect gift but it’s out of your budget, price shop online – many stores will match the lowest price.

Homemade Gifts Are Always Appreciated

Homemade presents are great ways to save money while creating something memorable. These gifts might not work for everyone on your list, but they’re good options for some. Consider photos for grandparents or cookies for your kids’ teachers.

To help stay financially fit during the holiday season, Bank of America offers a wealth of free tips and advice though BetterMoneyHabits.com.

 

Roberto HernandezRoberto Hernandez is the Financial Center Manager at Bank of America , Denver

On The First Day Of Christmas, My True Love Gave to Me: A 10.5% Price Hike (PNC CPI)

For the 39th year, PNC calculated the cost of Christmas. With the year-over-year increase in 2022 being the third highest on record, inflation for services far outstripped goods in this year’s PNC Christmas Price Index® (PNC CPI) — a light-hearted take on the Bureau of Labor Statistics’ (BLS) Consumer Price Index — which measures the average change in prices consumers should expect to pay for True Love’s gifts, outlined in the classic holiday carol, “The Twelve Days of Christmas.”

READ — 5 Ways Small Business Owners in Colorado Can Survive Inflation

“True Loves will need to come up with a record $45,523.27 to buy those 12 perfect gifts this year,” said Amanda Agati, chief investment officer for PNC Asset Management Group. “This is a disquieting development for many, as pandemic-related supply chain disruptions and elevated energy and commodity prices continue to impact the cost of goods and services. Despite True Loves’ generous intentions, the gifts that make up the PNC CPI are not well-insulated from what is being experienced across the broader economy.”

Driving much of the increase is the cost of some birds in the index. While the Partridge, Calling Birds and Swans saw no flight in price, the cost of others, including Turtle Doves, French Hens and Geese, flew up 20.1%. Services are also higher, contributing significantly to the overall increase.

The cost of all 12 gifts is reported on PNC’s interactive website, which is meant to be as fun as it is educational. Highlights of the double-digit increase in the PNC CPI to $45,523.27 include:

  • Far-out fertilizer prices: A key driver of the spike in the pear tree is the cost of fertilizer, which saw a growth of 28.4%.
  • Soaring service costs: Services inflation, driven by increased wages and labor costs, is higher than goods inflation in the PNC CPI, much like the BLS CPI. This year, services in the PNC CPI, represented primarily by the performers, are up 14.5% while goods increased just 4.2%.
  • Gold rings gaining: Given inflation concerns, some investors dashed for store-of-value assets like gold again this year. Gold ring prices are up a whopping 39% from 2021, reflecting the surge in the precious metal’s price during the year.

READ — Finding the Silver Lining Amidst Rising Interest and Inflation Rates

“While the gifts in this specialty basket of goods and services are truly unique, investors and consumers alike might consider asking their True Love for a different kind of gift this year instead,” Agati suggested.

The Federal Reserve has aggressively raised interest rates throughout the year to combat inflation against an already slowing economic growth backdrop and all indications are there is more to come.

“Markets continue to focus on two critical variables for the path forward: signs of inflation peaking and rolling over, and the Fed completing its tightening of financial conditions. In the absence of confirmation on both, we think the high volatility regime is going to continue to dominate and markets are likely to stay pretty choppy,” she added.

Price Increases for Services Outstripped Goods in 2022

True Loves who want to delight can do so with performers, but at a price. The price of Nine Ladies Dancing climbed to new heights, as did the Ten Lords-a-Leaping, who jumped for joy as they returned to in-person performances. Eleven Pipers Piping rose to a new tune, and the 12 Drummers Drumming found a higher beat. In aggregate, prices for performers increased 14.6% this year.

Although many states and localities across the country have raised minimum wages recently, the federal minimum wage has not increased since July 2009; thus, the Eight Maids-a-Milking haven’t seen a pay raise in more than a decade.

Unfortunately, tech-savvy True Loves will not save by going the e-commerce route. Buying all 12 gifts virtually is “just” 8.9% higher this year, still an eye-popping $49,663.73. Free shipping on livestock purchases is still not an option.

The annual PNC CPI tradition includes calculating the “True Cost of Christmas,” which is the total cost of items bestowed by a True Love who repeats all the song’s verses. Purchasing all 364 gifts will cost $197,071.09, which means that spreading cheer in 2022 costs 9.8% more than it did a year ago.

“Like the index, consumer behavior is the drumbeat for the U.S. economy,” Agati said. “With 70% of U.S. GDP tied to consumption, consumer financial health is key to future market performance. We will be keeping an eye on guiding stars like retail sales, savings rates and consumer sentiment as indicators of the success of this holiday season.”

Screen Shot 2022 11 29 At 34803 Pm

 

Started in 1984 by a PNC predecessor bank in Philadelphia, the PNC CPI was initially developed to include in holiday messages to clients. Now, it is intended to educate consumers while spreading some holiday joy and highlighting market changes over time.

The PNC Financial Services Group, Inc. (NYSE: PNC) is one of the largest diversified financial services institutions in the United States, organized around its customers and communities for strong relationships and local delivery of retail and business banking including a full range of lending products; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management and asset management. For information about PNC, visit www.pnc.com.

 

Donations That Matter — What Cause Will You Support During ‘Colorado Gives Day?’

With the holiday season in full swing, the spirit of giving is upon us! Your kids may be begging for the newest iPhone, and your relatives may want the coolest Peleton bike on the market, but let’s not forget what really matters — supporting the betterment of our Colorado community. That’s where Colorado Gives Day, Colorado’s largest 24-hour giving event, comes in.

If you haven’t heard of the massive donation event, let us give you the run down. Colorado Gives Day, run by ColoradoGives.org, has been a massive initiative since 2010. Here’s how it works: on the first Tuesday of December since 2010, Coloradans come together to support nonprofits that strive to make Colorado, and the world at large, a better place. The initiative has collectively raised more than $362 million dollar for Colorado non-profits since its inaugural day of giving almost 12 years ago.

Better still, Community First Foundation, FirstBank and other Colorado community partners want to ensure your donations go even further. That’s why every donation made from November 1 through December 6 on ColoradoGives.org gets a boost from the $1.4 Million+ Incentive Fund.

Find a list of causes, non-profits and organizations to donate to through December 6th at ColoradoGives.org.

Christmas can never be cancelled

This is undoubtedly the most wonderful—and most challenging—time of the year, whether you’re celebrating Christmas, Hanukkah, Kwanzaa, or simply enjoying the lights, music in the air, and festivities of the holidays.

People of all faiths, or no faith, take this time to share love and traditions with family and friends. It’s also the perfect time to reflect on the past and think about what’s coming next.

In the aftermath of 2020, our reflections take on new meaning and importance.

None of us has the gift, the promise, of tomorrow. We only have the gift of today. At the end of this particularly difficult year, how do we appreciate this moment in our lives? And especially, how do we create joy in the midst of so many restrictions and such uncertainty?

Like millions of other people, I’m a cancer survivor. I’ve been on that ledge and know what the gift of the moment means. 2020 has created that same scary feeling for people all over the world. No matter what, please don’t let the spirit of the holidays get away from you. We’re all fatigued, and what we need right now is to find the joy in this special season and feel it deeply. Reflect on the major challenges you’ve faced and overcome this past year, take pride in your strength, and move into 2021 with hope and joy.

Keep in mind that no one can cancel your holidays or allow the current circumstances to pause the pleasure of living your life. Unless you let them, or unless you are controlled by fear. Now is the time to think about new ways to celebrate the present moment. Consider dusting off old traditions and creating a few new ones that bring joy to you in this crazy year, and maybe even carry them into future celebrations.

There’s a special moment every year where the spirit of Christmas fills me with joy. This year was no exception. That moment touched my heart on December 5th as I ventured out to shop for gifts in my favorite local store. My joy at running into friends, and theirs in seeing me, wasn’t a bit obscured by our masks or physical distancing. It felt so good, so normal, to be outside shuffling through the snow, feeling the winter cold, and choosing presents for loved ones and friends. The highlight of the day was seeing Santa in the mall. Yes, he’s still out there, spreading joy everywhere. Some traditions will last forever …

The Quinn Family Christmas will be different this year. We’ll be adapting and innovating yet cherishing every moment of it. My hope is that the spirit of the moment will fill your holiday as well.