Here we are, two weeks out from Black Friday frenzy. This time of year can be a weird mix – a time of joy, celebration, and, unfortunately for many—financial strain.
With the twinkling lights and holiday cheer comes the pressure to spend, often far beyond our means.
According to a report by the Federal Reserve, American household debt hit a staggering $17.80 trillion in the second quarter of 2024, marking the highest level in history.
Given the concerning economic climate and skyrocketing debt levels, it’s crucial now more than ever to practice financial mindfulness.
Before diving headlong into Black Friday deals and Christmas shopping sprees, let’s pause for a minute and ask a few mindful questions that could help you from making financial decisions you may regret down the road!
We’ve put together ten questions you should ask yourself to make more intentional and less burdensome financial choices this holiday season.
10 Mindful Questions to Ask Yourself Before Holiday Shopping
Before we delve into the 10 critical mindful questions to ask yourself, let’s underscore why this is so important.
The average American household debt at the end of Q2 2024 was $104,215. As the holiday season approaches, these numbers often spike even higher.
It’s a constant barrage of:
- advertising
- influencer endorsements
- peer pressure
It’s so easy to get caught up in the sales and encouragement to shop – but just as easy to lose sight of your financial well-being.
Before you go on that shopping spree, take a minute to pause and take stock of your situation.
The following questions serve as a guide to help you shop mindfully, ensuring that you can enjoy the holiday season without compromising your financial future.
1. “What is my current financial situation?”
Before diving into the shopping frenzy, taking stock of your current financial health is crucial.
Why This Question is Important:
Understanding your current financial situation is the foundation of all your spending decisions.
With household debt reaching a record high, the sobering statistic highlights the gravity of understanding your own finances. Without a solid grasp of your income, debts, and monthly obligations, it’s easy to get swept up in holiday spending and heighten any existing financial issues.
Suggestions:
Before you hit the stores or add anything to your online cart, review your financial statements for an hour.
Look at your:
- income
- debts
- recurring bills
- and any other financial commitments
Make a quick budget if you still need to do so. There are plenty of free apps and templates that can help with this. Knowing your limits is empowering and can help you make more mindful decisions.
2. “What are my spending priorities this season?”
Before you start drawing up your shopping list, think about what matters most to you and your loved ones.
Why This Question is Important:
Statistics show that the average American family spends over $700 on Christmas gifts alone. When you add in Black Friday deals, that number can soar. It’s essential to know your priorities to allocate your spending wisely.
Suggestions:
#2 of the mindful questions to ask suggests you list the names of the people you want to buy gifts for and assign a budget to each one. This way, you avoid overspending on items that are not your top priority.
3. “Can I afford to pay for my purchases in full?”
Don’t let holiday sales lure you into buying items you can’t actually afford.
Why This Question is Important:
Credit card debt spikes after the holiday season for a reason. The consequences of being unable to pay in full can haunt you long after the holidays.
Suggestions:
If you can’t afford it, don’t buy it. Consider alternative gifts or experiences that fit within your budget.
4. “Are these items wants or needs?”
Distinguish between what you desire and what you actually require.
Why This Question is Important:
People often regret impulse purchases. According to a 2023 Statista report, though impulse buying has gone down (yay!) more than 50% from 2022 ($314/month) to 2023 ($151), that’s still a fair amount of money to spend on things you didn’t plan for.
Suggestions:
If an item is a ‘want’ rather than a ‘need,’ it could be something to save for in the future, rather than something to purchase on the spot.
5. “What is the long-term value of my purchases?”
Another of the mindful questions that asks you to look beyond the initial thrill of the holiday deals.
Why This Question is Important:
Buying cheap items that don’t last is a false economy. According to research commissioned by Ladder and conducted by OnePoll, a survey of 2,000 Americans revealed the average American spends almost $1,500 a month on nonessentials like subscription services, takeout and dining out, paid apps and impulse purchases.
Suggestions:
Invest in quality items with lasting value, rather than disposable items that will soon need to be replaced.
6. “How will this purchase affect my financial goals?”
Remember the bigger picture when getting caught up in the holiday shopping.
Why This Question is Important:
Financial goals, such as retirement or home savings, could be derailed by extravagant holiday spending.
Suggestions:
Before spending, consider how much closer this purchase will bring you to your financial goals, or how much it will set you back.
7. “Are there alternative ways to make this purchase?”
Consider all available options before making a purchase decision.
Why This Question is Important:
Financing offers, while tempting, often have interest rates that make items significantly more expensive in the long run.
Suggestions:
Look for zero-interest options or consider layaway plans to spread the cost without incurring interest. You may also be holding onto Airmiles, or rewards that could net you gift cards, points or cash toward buying gifts at stores you shop at often!
8. “Am I being swayed by pressure to buy now?”
Don’t let the ticking clock on sales pressure you into rash decisions.
Why This Question is Important:
A Bankrate study shows that 45% of those Americans surveyed feel pressured to overspend during the holidays.
Suggestions:
Remember that sales happen throughout the year, not just during the holiday season. If you’re not comfortable with the price, wait to buy it.
9. “What is the return policy?”
Always know your options should you decide to change your mind.
Why This Question is Important:
According to the National Retail Federation, a whopping $743 billion in merchandise was returned in 2023. Make sure you avoid getting stuck with an unwanted item!
Suggestions:
Keep all receipts and understand the return policies of where you’re buying from. Some stores offer extended holiday return periods.
10. “How does this purchase align with my values?”
The last of the mindful questions, this one asks if you let your values guide your holiday shopping.
Why This Question is Important:
Aligning purchases with values can lead to greater long-term satisfaction than following fleeting trends. Ethical consumerism is also becoming a significant factor for many Americans.
Suggestions:
Consider the ethics of where you’re buying from—support local businesses or those that align with your values.
Navigating Holiday Shopping with Mindful Questions
The allure of holiday sales and the pressure to buy gifts can make it incredibly difficult to maintain financial discipline.
However, taking a mindful approach to your holiday shopping can make all the difference. By asking yourself these 10 questions, you are protecting your wallet and ensuring that your purchases add value to your life and the lives of those you love.
It’s okay to indulge occasionally, but remember that a moment of pause can save you from months or even years of financial strain.
Make this holiday season a celebration of mindful spending rather than a gateway to debt. With a bit of planning and a lot of self-awareness, you can enjoy the festivities without the financial hangover!
Editor’s note: This article was originally published Oct 28, 2023 and has been updated to improve reader experience.
