Black Friday spending predicted to fall this year; here’s how to save

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Black Friday spending overview: 

• Who: Mastercard revealed in its recently released SpendingPulse report that consumers are expected to spend less this holiday shopping season.
• Why: The report predicts consumers will be more weary of spending this year due to rising inflation.
• Where: The report predicts consumer behavior nationwide. 

Black Friday and holiday spending is expected to decrease this year as consumers grapple with rising inflation heading into the holiday shopping season. 

Predictions say that consumers will dial back their discretionary spending this holiday season while placing an added emphasis on discovering good bargains through e-commerce sales, Reuters reports. 

Mastercard’s SpendingPulse report laid out what to expect this holiday shopping season as consumers continue to deal with higher prices for food and at the pump. 

The report predicts overall holiday spending growth to decrease from 8.5% to 7.1% from last year, with online sales, however, expected to increase 4.2%, Reuters reports. 

The breakaway from retail shopping this holiday season will reportedly leave big box stores such as Walmart and Target with a backlog of inventory that the companies apparently stocked up on following shortages caused by supply chain disruptions last year. 

Retailers looking to counter a potential backlog are expected to offer heavy discounts to clear out extra stock, according to Mastercard . 

Consumers seek ways to save money this holiday shopping season

There are a number of ways consumers say they plan to save money this holiday shopping season, including buying gifts from less expensive brands, making their own do-it-yourself gifts or purchasing fewer presents. 

Consumers who responded to a Bankrate survey also revealed they planned to gift secondhand items, use credit card rewards points when buying presents and start their holiday shopping sooner, CNBC reports. 

Consumers can control Black Friday spending and save money this holiday season by creating a sinking fund of extra cash. 

The benefit of a sinking fund is that it can prevent a consumer from digging into their savings when it comes time to make holiday-related purchases, CNBC reports. 

Consumers can also transfer funds they plan to use for holiday shopping into high-yield savings accounts that will reward them with higher interest returns than a traditional savings account. 

Consumers can use credit cards, browser extensions to get cash-back on purchases

Consumers can also save money through reward stacking, which is when a consumer combines shopping rewards programs when making a purchase. 

An example of reward stacking is using a credit card that offers cash back, while making the purchase on a browser extension that also provides cash back. 

A variety of credit cards and web browsers offer cash back rewards on purchases, CNBC reports. 

In related spending news, Retail Brew and Harris released a poll in August that revealed consumers hesitated to purchase American-made products due to rising inflation. 

In September, meanwhile, management consulting company Deloitte forecast that holiday sales would increase by 4% to 6% this year, with consumers expected to be willing to spend more money as the effects from the pandemic lessen. 

Do you have a plan for your Black Friday spending and holiday shopping this year? Let us know in the comments! 

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