Money Management

Christmas Shoppers Are Getting Smarter

December 23, 2014 By Sherry Tingley

Smart phone apps allow users to scan bar codes to find the best prices for items.

It happens every year. Suddenly, the shopping frenzy is upon us and the race is on.

Many Americans are taking advantage of the electronic age to get it done smarter, faster and more efficiently. They know how to find legitimate deals, avoid the fake ones and how to leave items in online shopping carts while they make sure they have the best deals they can find. To spot a shopper in the aisle of a leading retailer using a smartphone to check competing prices in another outlet is not outside the norm.

It’s this kind of savvy that took some of the energy out of Black Friday and other mega sales days this year. Many retailers who invested in huge advertising promotions before Thanksgiving apparently left customers with the impression that the deals were so big they had plenty of time to take part in the annual shopping spree without hassling the crowds.

C. Britt Beemer of America’s Research Group, reported that 75 percent of of the Black Friday shoppers were focused only on the door busters, deeply discounted specials that retailers hope will get people into the store. Last year, only 49.9 percent of the Black Friday shoppers said that the door buster was their main objective. The stores, many of whom have losses on the door busters, also lost the additional revenue generated by the impulse spending they hoped for once the customer was inside the doors.

ShopperTrak, a consumer analytics company that tracks in-store purchases, pegged the Thanksgiving weekend sales at $21.76 billion, a dip of 2.1 percent over the last holiday season. Sales rose 8.5 percent on the Monday after that weekend, an indication that more people were opting to miss the rush without feeling they might miss the best deals. Even so, before the end of the year, sales for November and December will have increase by 4.1 percent, the National Federation predicts. Most retailers see 20 percent of their sales in those two year-end months.

This is how shoppers are doing things smarter and changing the way the retailers are likely to approach the holidays in the future:

It takes more to catch the buyers’ attention now than in a less sophisticated day. If the retailer offers 20 percent off, they may ask for free shipping too. They are more savvy about the elements of retail selling and more apt to press the limits. Free shipping is, in fact, a big factor in online shopping. Merchants that don’t offer the service have 10 to 15 percent lower sales on their websites, according to analysts. Target is piloting a free shipping policy and saw online sales surge, the company reported. Their free shipping deal is available through Dec. 20.

Online buying obviously is making more inroads into store sales. Shoppers are not in such a hurry as they once were. This year has not seen any toys that are so hot people have a hard time finding them, reducing the mad scrambles that occurred in the past with such items as Cabbage Patch dolls and Tickle-Me Elmo. The shopper is willing to wait for further discounts as the season progresses. That puts the customer in the driver’s seat.

Online shoppers are learning to hold items in a shopping cart while they take time to look for better deals. They may have full shopping carts waiting for some time before consummating their deals.

In all, the 2014 shopping season may impact what happens in the future as shoppers become even more tuned in. Watch and see.

Top 10 Price Comparison Smart Phone Apps

December 17, 2014 By Sherry Tingley

Top 10 Price Comparison Apps — Get the best prices while shopping by using Smart Phone apps.

Notice just how many people are using their smart phones when you are out shopping. According to Shopatron’s Retailer eCommerce study, 86% of shoppers consult their smartphones. Over half of them are looking to compare prices, but they also want some extras, like product reviews.

PC magazine recently published a list of the top 10 smart phone apps in 2014. These apps have just about anything you would ever want from a price comparison app. Try some out and see if you don’t end up saving some money this Christmas season.

1. RedLaser – Simply scan the bar code and do your price comparisons.

2. ShopSavy – Input a product and the app will look for it. Handles bar code scanning and it has a SKU finder.

3. BuyVia – Will alert you for different products. Has a bar code scanner. Quotes reviews on products.

4. Smoopa – Scan the bar code and get a yes or no for getting the best price on an item where you are shopping. Earn rebate dollars for use of the app.

5. The Find – Scan the bar code and locate nearby deals and whats available online. Set pricing alerts to notify you of the lowest price point.

6. PriceGrabber – Searches online stores for deals and compares online prices for you. Results from 160 U.S. cities.

7. Consumr – Bar code scanner and shows product reviews. Earn rewards for placing reviews.

8. ScanLife – Online and local price comparisons with product reviews. Allows you to share deals on Facebook. Earn rewards.

9. ShopAdvisor – Price comparisons through bar code scanning and magazine scanning. Set alerts for low price deals.

10. Walmart Savings Catcher – Scan your receipt and compare prices of items against competitors advertised deals. Receive money back on a rewards card.

Use Credit Wisely During The Giving Season

December 16, 2014 By Sherry Tingley

The ideal is to get through the seasonal spending

Based on an analysis of Federal Reserve statistics and other government data, the average household owes $7,283 on their cards.

frenzy with your credit untouched. But many Americans fall short of that ideal. Second best is to be wary and wise as you whip out the plastic as needed. In a preview survey, the National Retail Federation learned that about 38 percent of consumers planned to use credit to fund their Christmas purchases. That’s a 28.5 percent rise over last year.

Don’t start without planning ahead. Set yourself a limit and make a budget that will allow you to pay off the accumulated bills as quickly as possible. Carrying high balances on your cards may lower your credit score, which could have repercussions if you plan any big purchases (home or car, for instance) in the near future.

Credit card issuers add to the temptation by offering seasonal specials with discounts and interest rate grace periods. But don’t count on these come-ons to offset the cost of credit. No company will offer enough to offset the interest they expect to earn. Before you climb on the bandwagon, be certain you are fully aware of the details. Read the fine print.

Examples, according to an Associated Press article, are the deals offered by Macy’s and Kohl’s. At Macy’s approved customers get a card that offers a variety of discounts. Macy’s customers can get up to 20 percent off items, but the offer maxes out at $100. At Kohl’s you can get a card account that gives 15 percent off your next purchase, plus a 20 percent discount when the card is received. The card also promises at least 12 annual discounts ranging from 15 to 30 percent on select items.

But Macy’s asks an annual percentage rate of 24.5 percent and Kohl’s 23.99 percent. In either case, the interest may outweigh the discounts.

Cards that offer no-interest purchases for a year of more may save money over time,but beware that a single missed or late payment could nullify the deal, making the initial savings ineffective. At that point, a high interest rate kicks in. If you opt for such a card, take the amount you wish to purchase with the card and divide it into regular payments within the grace period. If you can’t do that comfortably, you probably don’t need the card.

If your current card includes awards, possibly now is the time to use them to buy gifts. Some plans let you cash in your awards or give credit against your balance or special deals at a point redemption store. Take advantage, if you can, to use a point store to accommodate that gift list.

Creating a repayment plan can help to put the brakes on spending. And after the holidays, if you find you can make small payments twice a month, or increase the usual payment, do so. That will help take the sting out of interest. Most card issuers charge you interest based on your average daily balance. Micro payments can reduce those costs.

Tax-Wise Moves To Prepare For 2015

December 12, 2014 By Sherry Tingley

If the year end comes, can taxes be far behind? December is typically a time to assess your life and set goals. And that means taking a close look at personal finances. Scrutinize investments and budgets and go into the New Year armed with a plan for the next 365 days.

Tax season may be several months in the future, but don’t allow yourself to be lulled into inaction. There are things you can do before Baby New Year puts in his appearance both to ease this year’s tax load and to streamline for the coming year.

It goes without saying that you update your tax software and gather your documentation well ahead of the deadline. Start off the year as financially fit and tax-ready as possible.

Consider putting more money into a pre-tax retirement account such as a 401(k) or IRA, Keep in mind the 2014 contribution limits: $5,500 for an IRA if you are under 50, $6,500 for those 50 and up. The 401(k) limit is $17,500 or $24,000 if you’re 50 or over.

Donating to charities will lower your tax able income, and there are many opportunities in December. Your tax consultant can tell you how much you can claim in donations, depending on your income. And while you are talking with the experts, discuss how you can optimize your retirement and savings options.

Take a financial inventory so you will have a clear view of how you should approach investments to gain the best tax position for 2015. Learn how much your investment plans will require in taxes now and how much will be delayed until retirement. The experts can help you determine the best plan of action to maximize savings now and when you retire.

It’s possible that you can know your tax bracket but be unaware of your effective tax rate. That’s the percentage of your total income that you are taxed on. If you earn $90,000 and file as a single, you are in the 25 percent bracket. But if deductions lower the total to $80,000, you drop into the 22 percent bracket. Knowing these figures can help you make decisions about your investment accounts.

If you are looking into the future, think about whether you have more retirement funds in pre-tax categories. Might it be worthwhile to do some Roth conversions (which must be done by Dec. 31) so that you can put more funds into a category that will require taxes now. This could prove beneficial over the long term, especially if you expect your tax rate might increase as you age.

Look ahead if you have any suspicions that your tax load next year could be higher. Use your tax professional or good software to assess the figures. Make an adjustment in your withholding if necessary. On the other hand, if the pre-assessment suggests you can expect a refund, lower your withholding amounts.

If you have suffered any losses in investments, particularly in retail stocks, you may want to consider selling those investments, taking the loss this year. You can then write them off as you file in April. The market has generally been good this year, but if you don’t expect an improvement in sluggish investments, unload them. You can write off up to $3,000 per year in investment losses. Study your own situation and see what makes sense.

If you have used a Flexible Spending Account to lower taxable income, check on how much money is left in the account. If you don’t spend the balance before Dec. 31, you will lose it. A Health Savings Account also lowers your taxable income, but the balance can be rolled over from year to year. Try to use up your FSA balance by making necessary doctor appointments, updating immunizations and taking care of other health-related matters before the end of the year.

Everyone’s tax picture looks different, but a proactive approach at the year’s end will help avoid any problems that might have taken you unpleasantly by surprise when April 15 rolls around.

How To Choose Christmas Gifts For Teens

December 7, 2014 By Sherry Tingley

Choosing gifts for teens can be challenging.

Shopping For Teens Can Be Tough

Teens, bless them, can be a challenge when it comes to buying gifts. They tend to have extensive gift lists that change as often as their minds. They want the newest, trendiest items and what’s at the top of the lists may be changed from day to day.

Electronics

You can bet, though, that electronics of all kinds will be at the top of many lists. Your teen is likely into phones, accessories, video games, fashion accessories, active-wear and other items that say “let me be me.” The smartphone is far and away the most frequently sought in this age group. If you got the phone last year, try for accessories this season.

Gift Cards

Gift cards may have earned their reputation as quick and thoughtless, but they don’t lose popularity in the teen crowd. They beat a clothing, makeup or handbag gift that the particular recipient does not like. Those are items best left to the individual to select, and if the gift card fits . . . Even better is cash, that has no limits as to where it can be used.

Cash, gift cards or electronics, say the experts. And one larger gift card for one store beats a pile of smaller cards that fall short of price of a teen-coveted item. Mix-and-match. Match a gift card for iTunes, for instance, with new earbuds. A Darth Vader flash drive or a purse-size cellphone charger/flashlight might be the stocking stuffer of choice for many a teen.

Food

A gift of food can never be far wrong for the majority of teens. Candy, cookies, soft drinks, chips, etc., in a basket will keep the holiday alive, at least for a day or two. And again, a gift card to a local eatery will let them order for themselves.

Find Out Likes On Social Media Sites

With modern technology, it is possible to check out a teen’s social networks to learn if they have special interests in music, sports or hobbies. An item of clothing, say a winter hat, sporting the favorite team’s logo, is a good choice for the sports nuts.

Clothing

Teens are looking for items that set them apart as an individual. When you look for clothing items, take their personal choices into account. In active wear, sizing is easier if you stick with relaxed-fit items like jogger pants.

Providing the wherewithal for a teen to have a new experience such as flying in a jet pack or taking a hot air balloon ride may be the answer for the youth who has everything, or seems to have.