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5 Ways the Middle Class Can Fight Inflated Prices This Labor Day
Inflation has been slowly declining. According to the latest Consumer Price Index data, inflation stood at 3% in June, down from 3.3% in May. And yet, higher prices continue to weigh on wallets.
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Indeed, consumers have been hurt by higher prices in their everyday lives — whether at the grocery store or due to higher mortgages and rents. And for many middle-class Americans, navigating day-to-day finances has become challenging.
Labor Day is coming up on September 2, marking the end of summer and the beginning of back-to-school season. It’s also another reason to shop and spend money, thanks to many stores holding Labor Day sales.
“While inflation has cooled, many Americans have yet to feel the effects of this shift,” said Scott Lieberman, founder of Touchdown Money. “Prices are still high, so even with stable inflation, it’s still difficult to shop.”
GOBankingRates’ recent Summer of Savings survey found that 27% of Americans plan to spend up to $50 on their Labor Day plans. Another 14% plan to spend between $100 and $199, 4% plan to spend between $300 and $399, and 4.4% plan to spend more than $500.
If you’re worried about inflation eating away at your vacation budget, you’re not alone. GOBankingRates reached out to the experts for ways to combat inflated prices and tips to help you save if you are thinking about buying things on Labor Day.
Plan your purchases and think about the future
Consumer Finance Specialist and Vice President of Brand at To reachTanya Peterson said Labor Day sales can offer great deals and therefore can be very tempting.
However, she also warned that it’s easy to get carried away and buy more than you really need if you simply go shopping — whether in stores or online.
“Instead, think about and list what you’re buying,” Peterson suggested. “Take time to distinguish between wants and needs.”
Another tip from her: think ahead, as the holidays are just a few months away.
“This is a great time to think about your gift-giving and celebration plans,” Peterson said. “List who you plan to give a gift to, along with gift ideas and a price range.”
And if you find something that meets your criteria during the Labor Day sales and fits your budget, you can To save moneytime and stress during the holiday season.
“If you know of other events you’ll need gifts for this fall — birthdays, weddings, other celebrations — you might find some great finds,” she added.
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Compare prices
Brett Narlinger, Senior Vice President of Global Commerce at Blackhawk Networkemphasized the importance of shopping across different channels: in-store, online and in-app.
“Marketers are aware that the economy is driving people to look for the best deals on everyday products and services, and most retailers are running promotions regularly — especially around Labor Day and back-to-school,” Narlinger said.
However, what many shoppers may not realize is that different shopping channels often offer different deals — even with the same retailers.
“Taking the time to compare prices across channels and even retailers will help your budget and ensure you get what you pay for,” Narlinger added.
Check your budget
According to Peterson, every family, large or small, should maintain a budget to know exactly what’s coming in and going out, and how well you’re doing toward the goals you’ve set.
“Whether it’s to buy a new appliance or mattress, or to be able to retire one day,” she said. “No matter how good the sale is, it’s not worth going into credit card debt over it.
“That great deal on a refrigerator or bike isn’t a great deal if you end up paying more than the purchase price in interest. And with credit card interest rates now approaching 25%, that can happen quickly.”
Look for summer items and mattresses
Lieberman recommended sticking with summer items. Since Labor Day signals the end of the season, it also means those seasonal items need to be moved.
“Buying them now and enjoying them in September and October means you’ll save a lot and be prepared for next summer,” he said.
The GOBankingRates survey showed that many consumers are planning to do just that. Sixteen percent of respondents plan to buy clothing during Labor Day — such as shorts, swimsuits and flip-flops. Meanwhile, 13 percent plan to buy summer essentials — such as sunscreen, beach towels and pool accessories — and 18 percent plan to buy outdoor essentials.
Lieberman also suggested checking out mattress sales.
“Mattress companies see their fiscal year end in the fall, so sales tend to be higher around Labor Day,” he said.
While only 4% of Americans say they plan to buy a mattress this Labor Day, according to the survey, these purchases can be quite expensive, so taking advantage of any sales is always recommended.
Consumer Affairs reported that the cheapest mattress options can range from $50 to $500, while the most expensive options tend to start at $1,800 and go up to $4,000 (if not more).
Buy in bulk
Labor Day is also a great time to buy everyday items and grocery items on sale in bulk. And according to the survey, food is the number one item people plan to spend money on.
In fact, the survey found that more than half of individuals who plan to spend money on Labor Day plan to spend it on food — 53.75%.
“This is something you can also prepare for, as many stores will be promoting their Labor Day deals in advance,” said Erika Kullberg, an attorney, personal finance expert and founder of Erika.com.
“Depending on what you’re buying, you’re likely to find some significant reductions during this time, so keep your eyes peeled for a deal.”
Since many people can end up overspending when it comes to bulk purchases, Kullberg recommended being careful about sticking to your budget.
“Stick with items that you are certain you will use thoroughly. If it is something that you and your family actually use regularly, then you will often [find] better per-unit prices at stores like Costco, which can help you maximize your available budget,” she added.
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This article was originally published in GOBankingRates.com: 5 Ways the Middle Class Can Fight Inflated Prices This Labor Day