PHOENIX — The tree is up and signs are in the windows, advertising sales at Outlets North Phoenix.
Chayton Bower has been picking gifts up throughout the year but is still continuing his holiday shopping.
“Just looking for the deals,” Bower said.
Bower said this year, he’s opting to buy fewer gifts, but more valuable ones for those who are on his list.
“It’s altered a little bit, I was kind of more financially stable last year, so it’s been a little tighter,” Bower said.
Other shoppers aren’t cutting their lists but also aren’t adding anyone to their gift lists either.
“There’s an uncertain feel to the economy,” Kathleen Kennedy, associate professor of practice at the University of Arizona, said. “And when people are uncertain, they tend to be more conservative in spending.”
Kennedy focuses on retailing and consumer science and notes that this year, it’s the middle third of the economy that’s likely to spend less this year.
“Consumers have racked up a whole lot of consumer debt,” Kennedy said. “In addition to that, millions of people will have to be paying student loans this year during the holiday season. So, we have some people who are going to have less money to spend.”
In terms of spending the money that consumers do have, Matt Schulz, the chief credit analyst at LendingTree, suggests making a budget.
“If you go in with a budget and a plan and a list of what you’re going to buy, it helps keep you a little more focused -- maybe make you a little less likely to go off the rails and spend too much and end up with a little bit of debt afterwards,” Schulz said.
Schulz also suggests looking at if there’s a way to cut some subscriptions or memberships out of the budget temporarily to free up the budget for some holiday spending.
"There's no one-size-fits-all answer for what the best way is to make that shopping list for yourself, you may need to trim it a little bit, or you may need to kind of dial back the amount that you spend on various people, or it may just be a situation where you need to reprioritize some of the spending," Schulz said.
But Schulz also says the right credit card can make a difference too.
“The right credit card used wisely can actually help extend your budget this holiday season,” Schulz said. “Whether it's with a signup bonus or just some extra rewards, points or cashback that you get, that can be really helpful, too.”
However, Schulz warns consumers to pay those store credit cards off with the first bill.
“Those store credit cards come with really, really high-interest rates, even by typical credit card standards. So make sure you know what you're getting into before you apply for those,” Schulz said.
To help the whole family, others are continuing to creatively scale down the list, knowing the gift-giving season isn’t always easy.
“We do draw Secret Santas,” Mary Berg said. “We each have to make up a bit of a list and we do have a dollar amount.”
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