Three Sure Ways To Beat Inflation This Holiday Season

Sure, there will lots of sales. But everything from gassing up to go shopping, travelling and food costs more.

So it’s not surprising that 47% are planning to spend less during the holidays this year than they did last year while 32% of Americans plan to keep their spending about the same compared with 38% last year, according to a MassMutual survey.

What can you do? Focus on cash contributions. I would avoid gift cards. though. Write a check or make a contribution. Here’s what you can do:

• Cash is Still King. Write a check or hand out legal tender. It’s always useful. Forget about cryptocurrencies.
• Make A Contribution to an Emergency Savings Account. A frightening number of people don’t have a rainy day fund. Set up one in a money market fund or insured bank account. Money-market funds pay higher yields as interest rates rise.
• Contribute to a 529 College Savings Plan. Every state offers these programs, which help parents save for college. Earnings within the plan grow tax free. Proceeds are also tax free — if used for qualified educational expenses.

How do these things help the recipients of your cash gifts beat inflation? While everything costs more, a cash cushion gives them some buffering, something that works in any economic climate.