Every year on Labor Day, businesses offer great discounts, and many people see it as a good time to save money on shopping. However, financial experts warn that in a season of price inflation, it’s important to be mindful of your wallet and avoid excessive spending.
A nationwide survey conducted by the well-known American personal finance website WalletHub for Labor Day 2024 studied people’s Labor Day plans and the current economic environment’s impact on them. The results showed that about 74% of people believe that inflation is offsetting the rewards of their hard work, with nearly two-thirds of Americans stating that inflation is affecting their Labor Day plans. Compared to last year, 42% of people plan to spend less this year, and two-thirds of people admit to always overspending during Labor Day weekend. Additionally, 93% of people hope for a raise to keep up with inflation.
How can you save on Labor Day expenses and avoid excessive spending due to inflation? Baizhu Chen, a professor of finance and business economics at the Marshall School of Business at the University of Southern California, suggests comparing prices on websites before making a purchase.
Cathy Carey, an economics professor at the Kelley School of Business at Indiana University Bloomington, advises using higher interest rates and market returns for savings and delaying large purchases until your wages catch up with inflation or until prices drop.
Furthermore, she recommends tracking product prices before promotional days to ensure you are getting the best deals.
Compared to Westerners, the Chinese community is traditionally known for valuing hard work and thriftiness. How can they have a more affordable Labor Day? Fengyun Niu, a financial advisor at MassMutual with over 20 years of financial experience, notes that with current inflation leading to higher prices, it’s crucial to be conscious of your wallet and not buy things without considering their prices.
For those looking to buy discounted items on Labor Day, she advises, “There’s an old Chinese saying that goes, ‘Having money and not spending it for half a year is like hoarding.’ Don’t buy things and leave them untouched for half a year, as that would be a waste.”
For those considering purchasing financial products to combat inflation, Niu suggests two types of products to consider: “One is products with higher interest rates” and “the other is financial products tied to stock market fluctuations, such as bonds.”