Black Friday or Cyber Monday?

By Minjune Kim


Black Friday & Cyber Monday: Some Quick Facts

• Black Friday spending rose 0.5%, ($54 million), to $10.7 billion, this year from last year.
• Online sales up 17% (Thurs. to Sun.) over the same period last year.
• Cyber Monday up 11%, more than they did a year ago.
• Shoppers spent less per transaction: the average size of each sales ticket decreased nearly 14% from last year.
• Amazon.com and Walmart.com were the most visited online shopping sites.


This holiday season shoppers found deep discounts in a competitive Black Friday and Cyber Monday. Approximately 195 million shoppers, an increase from 172 million last year, either shopped at stores or online over the Black Friday weekend, typically the Friday, Saturday and Sunday after Thanksgiving. The National Retail Federation reports sales totaled $41.2 billion, up slightly from $41 billion reported during the four-day weekend last year

John Gerlach, a professor of Finance at Sacred Heart University, prefers cyber-shopping to walking the malls to purchase holiday gifts for friends and relatives.
"I prefer to do as much as I can online," Gerlach said. "I can shop that way on my schedule, even late at night. Online stores don't close. And, of course, there are no crowds. We're seeing more and more people doing their holiday shopping online."
Gerlach is part of a swelling crowd of online shoppers that have retailers catering to cyber-customers with special deals as well as reduced or no shipping charges. In fact, many online retailers have noticed a spike in sales on the Monday after Black Friday. The trend has grown to the point that online retailers typically refer to this day as "Cyber Monday."

You can't throw a rock without hitting an online retailer prognosticating about Internet holiday shopping trends. HauteLook, an online retailer that does limited-time sale events, said that from Nov. 26 to Nov. 30, sales rose 500 percent compared with the same period last year. According to a Shop.org survey, 96.5 million Americans said they'd shop on Cyber Monday this year, up from 85 million in 2008. But according to ComScore, those estimates are wildly high. It says that only 8.7 million people made online purchases on Cyber Monday and that retail e-commerce spending rose just 5 percent, to $887 million. Coremetrics painted a rosier picture of Cyber Monday: Compared with 2008, it said, sales were up 13.7 percent and the average amount consumers spent on each order was up 38.2 percent.


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CONSUMER FINANCE: Online Tools To Make Holiday Shopping Easy

Written by Jennifer Openshaw
Posted by Minjune Kim


This holiday is all about finding the right present for the right price. Luckily, there are some new online tools to help you do just that. After all, if you're not careful, you may end up spending more time hunting for deals online than you would by simply heading to a discount warehouse and doing your shopping in one fell swoop.

And these tools are not just for young technology geeks. "An older woman sitting next to me was raving about new apps," says tech expert Omar Wasow, referring to applications that enable you to do a host of activities from your smart phone, including detecting a police car or conducting a stock trade.

"She was exhibiting the same behavior as nerdy boys. Apps have gotten so easy to use that you see a much broader swath of the population using them," he said.

But before I share these new apps--plus seven other useful online tools that don't require a smart phone--let me remind you of the most important holiday shopping tip: Make a list and check it twice, and set a budget or the holidays won't be so nice.

OK, now for some top tips from Santa and the elves:

1. Coupon clipping the e-way
Most of you know you can head to Apple's store for a host of iPhone apps. Now, there's an app that allows you to get coupons in your area. Say you're looking to buy Nintendo's Wii. With the free Yowza!! coupons app, you'll discover which stores have the best prices within, say, a 15-mile radius of your home. Once in the checkout line, the agent will scan a barcode on your cell phone, avoiding the dreaded coupon clipping.

"If I'm at the mall, I may use my Yowza!! feature and see if there's a better deal up to 15 miles around," Wasow says. "It might be 10% or 15% off at a nearby store, and that can make the difference."

The RedLaser app allows you to scan an item's barcode--say, a DVD player--and get instant access to prices online. You can also scan items and send them to yourself to view later on a larger screen.

2. Be a fan for savings
Retailers are now turning to social media tools like Facebook and Twitter to market special deals and, at the same time, test these new marketing tools. "You can search for your favorite retailer on Facebook and join their fan page," says Michelle Madhok, founder of SheFinds.com. "They'll release special deals, and hot items will then show up in your news feed when you log into Facebook."

3. Price alerts
Serious investors know they can set up alerts for stock price gains or drops. Now, you can do the same for electronics, clothes and other gifts on your list, receiving instant alerts in your inbox when an item's price drops. Shopstyle.com offers sale alerts for fashion items and Pricespider.com does the same for electronics.

4. Visit the online 'dollar store'
A big part of Overstock.com's business, Madhok says, is selling items not sold elsewhere, sort of like the online version of the dollar store. While the products can really range in quality, you can buy last year's items--say an iPod--at huge discounts of 50% or more. And many recent book titles can be had for $1, cheaper than Amazon.

5. Bank and save
Look to your bank for special offers. Bank of America Corp. (BAC) is among those with a shopping program designed to encourage customers to use their debit cards. With the "Add It Up" program, you can shop for products through any of the 300 listed retailers, buy at the discounted holiday price if available, and receive up to 20% cash back on your purchase.

Many banks, such as Wells Fargo & Co., also offer tools to manage your expenses in real-time, so check them out so you avoid that holiday debt hangover.

Click here to read more

Ways to Save Money This Winter

Posted By: Pete Hill

Although the economy seems to be recovering from the recession, it is still important for people to save money. A big component of saving money is by spending smart. Especially this time of year, where people tend to lose track of budgets and overspend given the holiday season of “giving”, there are ways to still save money. The three big ways to save money are by smart Christmas spending, lowering home energy costs, and by investing those saving to see a return.

Christmas does not need to be a time to spend all of your money just because it was what you did in the past. Through cookies, recording family gatherings, creative Christmas cards, there are plenty of ways to give memorable gifts without spending more than fifteen dollars.

At home there are ways to cut your spending, without anyone ever noticing. Energy bills are on the rise, but are easy to counteract. If you turn your thermostat down two degrees, you will save four percent off your heating bill. Additionally, turning down the hot water heater just ten degrees will save you five percent or fifteen dollars. Repeating this process will allow for savings, and make sure money is not being wasted in your own home.

Lastly, if you invest the money that you are saving from holiday spending and energy bills, you will make money on the initial savings!

Sources:
http://www.bankrate.com/finance/personal-finance/12-ways-to-create-holiday-magic-for-less-than-15-3.aspx
http://www.bankrate.com/finance/money-guides/energy-savings-get-the-most-for-your-money-1.aspx
http://www.bankrate.com/finance/investing/9-cash-saving-tips-that-pay-big-bucks-1.aspx

Cyber Monday is a larger success than Black Friday

Posted By: Pete Hill

The last week of November is an especially important one for the U.S. economy. Following the Thanksgiving holiday on Thursday is Black Friday, traditionally the best sales day of the year for retailers as Americans rush to do their Christmas gift shopping.

Monday brought a bit of holiday cheer for online retailers as shoppers spent less time but more money than last year.

Many predicted that Black Friday would be bigger than Cyber Monday, but the results were surprising. U.S. consumers spent ten percent more on Cyber Monday than on Black Friday. Monday's sales were up fourteen percent compared to last year and the number of items per order also climbed thirty percent.

Online shopping can be much more beneficial to a consumer by comparing prices, instead of going right into one store. If you can figure out a way to get good at the internet, consumers can have some fun at this. It will be helpful, more than ever before, in this economy to help our dollar go further.


Sources:
http://english.chosun.com/site/data/html_dir/2009/12/03/2009120300475.html
http://www.nytimes.com/2009/11/28/your-money/28money.html?_r=1&ref=your-money
http://www.latimes.com/business/la-fi-cybermonday2-2009dec02,0,7649378.story

How to Survive the Holidays Financially

By: Laura Reginelli

The holidays are a time of family, joy and generally gift giving. Whether the gift is big or small, most people have become used to the tradition of exchanging gifts for the holidays. For many families, the holiday spending is enough to break the bank and as we go through these economically tough times many may be wondering how to get through the holidays without overspending. It’s a balancing act of give and take. Read below for tips.

· Take advantage of the digital age and start to shop online. Often times it is less hassle and much less expensive. Shopping online allows you to easily compare prices of goods from different stores, ultimately leading you to leave with a deal!

· Don’t fear signing up for rewards cards that you come across. Often times rewards clubs have exclusive offers for members around the holiday time and they can help you keep money in the bank. Remember every little bit helps.

· Another good idea is to create a spending limit for yourself and then budget out how much you want to spend for each individual. If you have a budget you are likely to spend less and seek out the deals that are available.

· Just like when you go grocery shopping you should also bring a shopping list for holiday shopping as well. This will help eliminate time and hassle.

Sources: http://www.ehow.com/how_2133778_save-shopping-holiday-season.html?ref=fuel&utm_source=yahoo&utm_medium=ssp&utm_campaign=yssp_art

http://family-budgeting.suite101.com/article.cfm/christmas_shopping_on_a_budget

http://familyfinances.suite101.com/article.cfm/how_to_avoid_christmas_shopping_stress

Low Cost, High Thought, Holiday Ideas

Posted By Pete Hill

The time of the year starting with “Black Friday” and ending on Christmas Eve is a time in which spending increasing, and many budgets are not followed as planned. However, there are ways to spend efficiently, and give gifts that will be thoughtful and beneficial.

Many holiday shopping strategies focus on getting more for less. But in actuality it is just better to give and get less stuff for a lot less money. Two of the easiest ways to cut down the holiday spending is to not buy yourself presents during the holiday season, and do not buy items for your spouse. Homemade gifts that last forever and can capture more loving memories are always preferred and cost much less money.

Another big problem of the holiday shopping season is that many people buy gifts that have a higher price tag than the value it actually brings to the recipient. For example, you may buy a present for some for fifty dollars that they may not spend fifty dollars on, or even buy all together. As a result, there is one present that is always effective- cash.

With new fees and restrictions on gift cards, money becomes the much more useful and thoughtful gift. Money can be used everywhere, even internationally. In addition, you can buy anything at anytime, with no penalty for holding onto it too long.

As a result, during the holiday shopping time, cash are perfect presents although with thoughtful, homemade gifts.

Sources:
http://money.blogs.time.com/2009/11/19/cash-the-perfect-gift/
http://money.blogs.time.com/2009/11/20/have-yourself-a-merry-anti-consumer-christmas/
http://money.blogs.time.com/2009/12/04/135-money-saving-resources-and-tips-special-holiday-season-edition/

How to Improve Your Credit Score After Bankruptcy

Posted by: Janielle Viggiano

Bankruptcy can be devastating to your credit score, but if you know how to bounce back it can be easy to get your credit score back up. If you want to build your credit back up fast you have to get and use credit. A bankruptcy can technically stay on your credit score for up to ten years, but according to MSN Money, “if you adopt responsible credit habits such as paying your bills on time, using only a small portion of your available credit and not applying for too much credit at once (2009).”

People interested in improving their credit scores can opt for a secured credit card and payroll deduction credit cards. “One can get approved for a secured credit card within 6 months of a bankruptcy discharge. The card is secured by a cash deposit that acts as a collateral for the same. Although, the fees required for secured credit cards are much higher than those levied on unsecured credit cards, the consumer may find it difficult to get approved for unsecured credit cards due to poor credit scores (2009).” The only pre-requisite for a payroll deduction credit card is that the applicant must be employed because the money that is used for the card is deducted from the person’s paycheck over a 2 month period.

According to Smart Money, here’s how to raise your credit score as quickly as possible after declaring bankruptcy:

1. Damage control
2. Get new credit cards
3. Piggy bank
4. Bigger loans

Sources: http://articles.moneycentral.msn.com/Banking/BankruptcyGuide/BounceBackFastAfterBankruptcy.aspx

http://www.smartmoney.com/personal-finance/debt/declaring-bankruptcy-can-improve-your-credit-score-20681/

http://www.buzzle.com/articles/improve-credit-score-after-bankruptcy.html

Disappointing "Black Friday" Reports

By, Meredith Anderson

While some enjoyed their Thanksgiving breaks at home with family relaxing and catching up, others were watching the clock on Thanksgiving. Many people would agree that the holiday season officially kicks of with the Macy's Day Thanksgiving Parade. However millions other agree that the Friday after Thanksgiving, which has come to be known as "Black Friday," is the real deal. Hundreds of people wait outside stores with the sun hours from even rising to try to grab the best deals.

It's been said that "Black Friday" is not only a great time of profit for companies, but also a very helpful predictor for how the rest of the season will play out. With all the hard months in the past this year was suppose to be a good day for everyone. In fact sales increased .5% from last year.However with this excitement can some disappointment when more analysis showed that the increase in shoppers was making this data seem more favorable then it actually was. Almost 2 million more people showed up at stores on Black Friday, making the sales for this year an actual loss of 8.6%.

The newest introduction to the retail tradition now known as "Cyber Monday," was actually retailers best hope this year. The sales that continued online till Monday showed a drastic improvement of 19.6% from last year. Internet is still only a small portion of the industries sales, however it is showing the strongest future for this season.


Sources:

http://www.examiner.com/x-2988-San-Diego-Economy-Examiner~y2009m12d2-More-reports-that-Black-Friday-spending-was-down-due-to-recession
http://www.examiner.com/examiner/x-2988-San-Diego-Economy-Examiner~y2009m11d30-Black-Friday-sales-numbers-worry-retailers--Is-this-another-bad-year-for-retail
http://news.yahoo.com/s/ap/us_holiday_shopping

When NOT TO Cancel a Credit Card

Article by Matthew Maillet

Making the decision to cancel a credit card has many associated risks that come along with it. For example, closing an account may hurt your credit score for up to two years. These repercussions can have lasting effects on your ability to access a loan, acquire financing, etc. With that said, there are many considerations to take into account before choosing to close an account.

If you are on the market for a substantial home or auto loan, it is most important for your credit score to be as strong as possible—every little detail counts when a lender is determining payments and length of the loan. Thus, refrain from closing an account until you have already been approved for the loan.

If you are struggling to boost a low credit score, you should avoid cancelling credit cards at all costs. “You particularly want to preserve your oldest and highest-limit accounts when you're in credit-improvement mode.” With that said, it is typically unwise to cancel a credit card with any credit score lower than 700. If closing your account is a desperate measure that is unavoidable, delay cancelling the account as long as possible. Wait until you are in the most stable position possible before you make the decision to cancel your account.

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Yet Again, Congress has Ignored the Best Interest of the Consumer

Article by Matthew Maillet

Banks have been given a two month grace period before new laws are formally enacted. The Congress opposed a bill presented by the House that would have made new banking restrictions enforceable on December 1^st, 2009 as opposed to February 22^nd, 2010. Thus, banks are reacting aggressively by taking advantage of the last few months before new laws come in to affect. While the banks’ dissatisfaction is mostly caused by lawmakers, many companies have attacked their own customers—while ignoring consumers’ credit scores and payment histories in the process.

By banks unjustly attacking consumers with 20%-30% rate increases in recent months, many companies have risked losing their core base of customers. Any consumer with decent credit has the opportunity to switch banks if he or she pleases, thus there is great risk in these tactics. Those Americans with poor credit history however are faced with the threat of default. This domino-effect has all come in response to government measures that were originally put in place to PROTECT the consumer, not BANKRUPT the consumer.

The blame should be directed towards Congress. The vast majority of banks facing the new 2010 laws in the near future are in fact prepared to meet these new regulations today. However, Congress has ignored the best interest of the American consumer while siding with the banks.

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Ways to make money in the market

posted by Pete Hill

With the market increasing to back up over sixty percent of where it was prior to the recession, investors are still able to make returns if done properly. The first step to investing well is to take your emotions out of the equation. In theory, you should put money into the market when no one else wants to. But that's easier said than done because people still remember what happened last time.

“Wall Street likes to think of the stock market as an emotionless discounting mechanism of future corporate earnings, but in reality, it's a creature of turbulent emotion, especially in the short term.” stocks are your best bet for gains over long periods of time. If you have a long-term goal, such as retirement, you need to tiptoe back into the stock market, if only to get returns a little above nothing.

The best bet is stocks, bonds, and money market funds. The best mix to have in this current economic condition is twenty percent in money market, thirty percent in bonds, and fifty percent in stocks.

Although the market is still hated among many investors, it is bouncing back and there is potential to make money if done cautiously.

Sources:

http://www.usatoday.com/money/perfi/columnist/waggon/2009-11-13-invest13_ST_N.htm

http://www.usatoday.com/money/perfi/columnist/waggon/2009-11-20-invest20_ST_N.htm

http://www.usatoday.com/money/books/reviews/2009-11-15-the-sellout-book_N.htm

Loan scammers hide behind 405 area code

South Carolina woman bilked out of $2,400 by Canadian con artists

Written BY VALLERY BROWN
Posted by Stefanie Marty


Bad credit? No credit?

Offers abound to help individuals get loans or credit cards, even with less-than-perfect credit history. A South Carolina woman learned the hard way that some deals are too good to be true.

Tyna Milcetich, of Charleston, S.C., had an opportunity in August to move out of her rental home and into a houseboat. She started looking for a loan to buy the $30,000 boat and found Birchmount Financial Services of Oklahoma City through a Google search.

Milcetich said the Web site and the loan application offering personal loans to consumers with poor credit looked like the real thing.

She filled out online forms requesting information about a loan.

The next day, she received a phone call.

"They contacted me back and sent me contracts,” Milcetich said. "Then they told me I’d been approved.”

A poor credit history made Milcetich ineligible for most bank loans. She said her common sense was overcome by the surprise and joy of being approved.

Milcetich filled out contracts, gathered documents and faxed everything back to the company at their 405 area code.

A representative instructed Milcetich she would need to pay $2,400 in collateral before the loan could be disbursed.

Thinking it the opportunity of a lifetime, Milcetich emptied her savings account and wired the money.

Click here to read more.

Credit Card Hardship Programs

By Stefanie Marty

In difficult economic times many people have trouble meeting their financial obligations and get behind in credit card payments. These missed payments damage credit scores and cause additional charges. To help borrowers maintain their debt and avoid defaulting many financial institutions offer credit card hardship programs.

A credit card hardship program is an agreement between a borrower and a credit card company under which a payment plan is set up. Payments are delayed and interest rates and monthly payments are reduced to a level the borrower can afford. By offering these programs the lender hopes that the borrower will be able to make full payments on the account in the future. Also, credit card hardship programs are not offered to everyone. Typically, they are limited for financial hardship caused by life-changing events.

Credit card hardship programs also have their potential downsides. It is only a myth, and not reality, that with such a program you will be able to reduce your credit card balance in half. Further credit card hardship programs will hurt your credit score and also affect your credit card account.

So make sure you know enough about a credit card hardship program before applying for it. It might be a good solution for some borrowers, but not for others.

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Fewer Shoppers Using Credit This Holiday Season

Posted by: Janielle Viggiano

An estimated 28.6% of people will be using credit to pay for holiday gifts this year, down from the 31.5% that paid with credit last year. According to the Wall Street Journal, credit is still more actively used than debit for online shopping, mainly because the protections are better when using credit in case of fraudulent overdrafts.

If you’re one of the 28.6% of people using credit this year, beware of the consequences. Dallas News states, “Running up your credit card bills could be extra costly this year as card issuers scramble to change many terms before federal rules restricting their practices take effect in February. They're raising annual percentage rates, instituting fees, slashing credit limits and even closing some accounts, all of which could put consumers who carry large balances in a bind (2009).” If you are planning on using your card, make sure not to charge anything that you don’t think you can pay off in three months.

According to Michigan Business, “The number of credit cards outstanding has declined to 325 million -- down from the peak a few years ago of 425 million, according to Diane Swonk, chief economist for Mesirow Financial in Chicago (2009).”

When you’re shopping this holiday, develop a spending plan before you head to the stores and a list of people you are planning on buying for, how much you want to spend on them, and what you plan on getting them. This will make it easier to stay away from making impulse purchases. Pay in cash or use debit, but if you decide to use debit make sure you keep track of your spending and your bank balance so that you don’t overdraw your account.

Sources:http://online.wsj.com/article/SB10001424052748704107104574570110802685606.html?mod=WSJ_hpp_sections_personalfinance

http://www.dallasnews.com/sharedcontent/dws/bus/personalfinance/stories/112309dnbusperfi.3c94af6.html

http://www.freep.com/article/20091203/BUSINESS06/912030582/1318/Beware-of-a-credit-card-Christmas

Understanding Your Credit Score

Posted by: Janielle Viggiano

Credit scores or FICO scores are numbers that are assigned to you that represent your credit history. According to the Associated Press, “The information that is used in determining your FICO score comes from a variety of places including the major credit bureaus, credit card companies that have issued you a credit card, banks and other financial institutions where you have loans, and other data bases that have consumer data on them (2009).” The numbers are added up and determine whether you are eligible for low cost credit, higher risk credit, or no credit at all. The higher your score the better your credit rating, which translates into lower interest rates on loans or other credit items.

According to Lending Tree if you have a credit score of 720 or above, you have excellent credit and will most likely receive a lender’s most favorable rates. “Lenders will often allow you to borrow more than 80 percent of the value of your home, and may not require private mortgage insurance. You will likely be able to get a home equity loan or line of credit with an interest rate equal to the prime rate, or even below it. You can also look for a credit card that will reward you with a low interest rate -- while many cards charge 18 percent, you should be able to obtain a rate under 10 percent (2007).” 675 to 719, you’re not going to get the best rates but should still have no difficulty finding a good loan. “On a 30-year fixed-rate mortgage, expect to pay up to half a percentage point more than someone in the top category (2007).” 620 to 674, “With a below-average credit score, your options will be reduced, and you’ll pay a premium on your loan -- perhaps as much as 2 percent more than borrowers with excellent credit. You may need to provide more documentation than those with higher scores, including a formal appraisal of your home’s value (2007).” Lastly, below 620 puts you in a category of a “sub-prime” borrower. You’ll most likely pay at least 3 more percentage points than someone with excellent credit and will be in the double digits for a home equity loan. A poor credit score can hurt your rate for car insurance and even put a damper on a job search.

One can improve their credit scores by paying their balance on their credit cards on time, at the end of each billing cycle, and not just paying the minimum amounts. According to Buzzle.com, “Existing lines of credit should not be canceled since doing so will increase the debt utilization ratio. The ratio between the outstanding balance and the amount of available credit is known as the debt utilization ratio. Again, increased credit limit will result in lowering the debt utilization ratio. A low debt utilization ratio is good for the credit score while a high ratio impacts the score negatively (2009).”

Sources: http://www.associatedcontent.com/article/74007/credit_scores_understanding_what_they.html

http://www.lendingtree.com/credit-resources/advice/credit-scores/what-do-credit-scores-mean/

http://www.buzzle.com/articles/credit-scores-and-what-they-mean.html

Holiday Credit Card Tips

Posted by: Christina Dove

In the midst of the holiday season, there are several credit tips that must be followed to avoid added financial stress. With so many purchases during this time it is important to keep track of how much you are spending on each credit card. One of the most important tips are not to fall into the trap of buying an in-store credit card. Many retailers offer these cards and try to entice you by offering some inital discount of 10-15% off of your first purchase with the card. However, this superficial offer can get you into some trouble in the future.

"In-store credit cards are structured like subprime credit cards. Even if you start with a low rate, these rates generally go into the low 20s," said John Ulzheimer, president of consumer education at Credit.com. "Terms retailers offer, a 24.9% interest rate and a credit limit of $1,000, are terms reserved for high-risk borrowers," he adds. Another trap many holiday credit card users fall into is not knowing how much they are spending or at what rate they are borrowing. Both of these habits can be very dangerous and cause a lot of added stress after the holiday season. Make sure to use the credit card that has the lowest rate as well as remember to only spend as much as you plan on being able to pay back.

Credit card companies can be relentless during this time of year and are looking to take your money, no matter what cost it is to you. So it is very important to be aware of how much you are spending on your credit cards and to be smart this holiday season.




Sources:

http://money.cnn.com/2009/11/18/pf/holiday_credit_card_tips/index.htm

http://www.federalreserve.gov/newsevents/press/other/20091125b.htm

http://news.morningstar.com/articlenet/article.aspx?id=316546&pgid=rss

People Looking to give more charitable gifts in bad economy

Posted by: Christina Dove

In this bad economy people are struggling to figure out how to afford the Christmas gift giving season. With so many bills and loans to pay people do not have the extra expenible income that they have had in the past to spend on Christmas gifts. Even if you have not lost your job or been severely impacted in other ways are finding it difficult to decide how to effectively spend their money this holiday season.

One option a lot of Americans are taking advantage of is donating gifts to charities on behalf of people they are giving gifts to. This is a great way to help out the charities in need as well as save money on expensive, nonmeaningful gifts. As a result of the current economic climate, seven in 10 adults (71 percent) will spend less money on holiday presents this year, and about half (49 percent) are now more likely to give a charitable gift as a holiday present. Also, more than four in five adults (84 percent) would prefer to receive a meaningful gift that would help someone else rather than a traditional holiday gift such as clothing or electronics. These statistics show that now more than ever is the time to truely be giving this holiday season and donate gifts to those who need them most.

Not only is this a great opportunity to save money, it is shown that people would rather receive a meaningful gift rather than a standard thoughtless store bought gift. So this holiday season start being creative in your gift giving and save some money in the process.



Sources:

http://money.cnn.com/2009/11/30/pf/charitable_giving.moneymag/index.htm

http://www.cnbc.com/id/34257037

http://www.worldvision.org/content.nsf/about/20081117-charity-giving-survey

Cyber Monday Posts Strong Sales

By Eric Gursky

Cyber Monday, the marketing term used to describer the monday following Black Friday took place this past week. Many online retailers count on Cyber Monday to be one of their biggest sales days just as malls count of Black Friday to deliver good results. In 2008 when our economy was in a recession many retailers were blindsided with the weak turnouts and low sales. This year was hoping to be much different.
By late Monday afternoon sales were already up 11 % from a year ago. Web retailers had stepped up promotions and discounts in order to capitalize on the shoppers not finding all their wish list items in stores. According to Coremetrics, a San Mateo, Calif.-based company which likes to compare Cyber Monday sales to online Black Friday sales, to see how "cyber" the Monday actually is. As of about 5 p.m. Pacific time, Cyber Monday was about 13 percent ahead of Black Friday.
Based on results from 500 participating vendors, including Macy's, Nordstrom and Bloomingdale's, Coremetrics said the average online order grew to $180.03 on Cyber Monday, up 38 percent from $130.24 on the same day last year.
NBC posted similar results on Cyber Monday, ShopNBC.com achieved its highest traffic day year-to-date, with 114,600 unique visitors to the site. In addition to surpassing 2008's Cyber Monday traffic by 14%, web penetration accounted for an industry leading 48% of the total company sales. The increase in traffic to the site, along with its extended product assortment and promotional offerings, led to an 18% increase in sales vs. last year's same period. Total orders on ShopNBC.com increased 40% over the previous year.

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G.E Agrees to Sell NBC to Comcast

By Eric Gursky

After many months of negotiations and publicity, the sale is finally complete. Comcast, the nations largest cable operator has reached and agreement to acquire NBC Universal from General Electric. This acquisition will allow Comcast to have a 51% majority ownership in NBC while G.E will attain a 49% ownership.
The deal is estimated to be valued at $30 billion. Under terms of the deal, Comcast will contribute its entertainment channels, including E and Versus; nine regional sports networks; and about $6.5 billion in cash in exchange for 51% of the new venture, which will continue to be called NBC Universal for the immediate future. G.E owned a 80% stake in NBC before the deal.
Chief Executive Officer of G.E Jeffery Immelt sees this NBC sale as an opening of new opportunities for G.E including but not limited to acquiring businesses in aviation and health care. After dividends and capital spending, GE will have $16 billion to $18 billion in discretionary cash next year. Immelt doesn’t expect to have to add capital to the GE Capital finance unit beyond the $2 billion in 2011 that may be required by an agreement between the division and the parent company.
For Comcast this is a win-win situation as it allows them to grow bigger and expand their markets while other media giants are shrinking. This deal is a perfect fit for Comcast and will allow them to become a leader in the development and distribution of multiplatform 'anytime, anywhere' media that American consumers are demanding.

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The 5 C's of Credit

By Shawn Chandok

Regardless of your financial stability, there is a high possibility that you will require a loan at some point in your life. Whether this is a bank loan, student loan, or any other type of loan, the qualifications for your eligibility will most likely be the same. Below, I will be discussing the 5 C’s of credit and how each one differs significantly.
1. Capacity is by far the most important of all the factors determines your eligibility for the loan because if specifies how you intend to pay the loan back. Lenders will usually project your expected cash flows and determine an interest rate suitable for you. Furthermore, they will look at your credit history to make sure you confirm you are a worthy investment for them and do not contain any risk, such as multiple previous bankruptcies.
2. Capital refers to the amount of your personal money you have invested for the project. The purpose of capital is to reduce the risk for the lender. If the lender feels you have a lot of your own money invested as well, his/her risk decreases because if the investment sinks, you sink as well. Thus he/she will be more willing to lend you money if you share the risk.
3. Collateral refers to the form of security you provide to the lender in case you cannot repay him/her. Most people will usually put their home/mortgage as collateral for the lender. If you cannot repay the lender, he/she will usually put a lien on your home until foreclosure is inevitable. What you should know is that, banks do not like foreclosures because they have to auction the home for a less value, which means they lose money.
4. Conditions merely reflect the circumstances for the loan. For example, are you taking the loan out for a family emergency or collage? Each condition creates a level of importance and lets the lender aware of your situation.
5. Character refers to the type of person you are. Lenders want someone who they know will pay them back on time. They usually check your educational background and confirm with your attitude. Although this may seem unimportant, this can sometimes be one of the most important criteria’s for a lender.

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Cyber Monday Outperforms Black Friday

Posted by Ahmed Al-Salem

The last week of November is an especially important one for the U.S. economy. Following the Thanksgiving holiday on Thursday is Black Friday, traditionally the best sales day of the year for retailers as Americans rush to do their Christmas gift shopping. The name was coined because businesses count on the day's sales to bring their balance sheets into the black.

With the rise of the Internet, the term "Cyber Monday" was coined in 2005, referring to the Monday after the Thanksgiving weekend when online shopping surges. The two days are of great significance as they serve as a bellwether for the U.S. economy, indicating the level of consumer confidence and illuminating consumption trends.

Experts paid particularly close attention this year because a rise in consumption could signal a recovery of the U.S. economy, and the world economy in turn, from the financial crisis, which started last September. Many predicted that Black Friday would be bigger than Cyber Monday as usual, but the results were surprising.

According to market researcher Coremetrics, U.S. consumers spent 10 percent more on Cyber Monday than on Black Friday. Monday's sales were up 14 percent compared to last year and the number of items per order also climbed 30 percent.

In contrast, the average U.S. consumer bought US$343.31 worth of goods on Black Friday, down 7.9 percent from last year, the National Retail Federation said.

Experts say that recession-weary consumers used offline retailers for window shopping before turning to the Internet to make actual purchases at better prices.

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Black Friday fails to boost stores

Parija B. Kavilanz

Posted By Ahmed Al-Salem

Retailers placed a lot of hope on the Thanksgiving weekend gift buying this year, but early sales results for the month released Thursday showed many merchants did not get the big boost they were seeking.

Some specialty sellers were hit especially hard. Among them same-store sales at teen clothing chain Hot Topic fell 11.7%. last month. Analysts had expected a decline of 8.1%, according to sales tracker Thomson Reuters.

Children's Place, a seller of clothing and accessories for young kids, suffered a 13% drop in its same-store sales versus expectations for a 1% increase.

Sales at another youth merchandise chain Abercrombie & Fitch (ANF) slumped 17%

Elsewhere, total sales at No. 1 warehouse club operator Costco (COST, Fortune 500) rose 6% compared to a forecast for an increase of 8.1%

Same-store sales are a key measure of a retailer's performance and measure sales at stores open at least a year.

Thomson Reuters, which tracks monthly same-store sales for 30 chains such as Target (TGT, Fortune 500), Gap and J.C. Penney (JCP, Fortune 500), said 15 of the retailers in its Same Store Sales Index have reported their results. Of those 15, 85% missed analysts' sales estimates while 15% beat expectations.

Overall, the firm has expected November sales for the group to grow 2.1% compared to a steep 7.8% decline last year.

However, the much softer-than-expected early numbers prompted Thomson Reuters retail analyst Jharonne Martis to say that November's performance will most likely be worse than expected

November is a critical month for retailers since it marks the start of the year-end holiday shopping season. November and December together can account for 50% or more of merchants' annual sales and profits for the full year. To top of page

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Early Holiday Shopping Numbers Cause Confusion

Posted by: Christina Dove

After Thanksgiving is when most people decide to start chipping away at their holiday shopping list. With the struggling economy many economists believed that people would be cutting back on spending this holiday season and spending more money at less expensive stores, such as Walmart. On the one hand, the International Council of Shopping Centers projected holiday sales would rise 1 percent to 2percent, and its survey suggested consumers will boost spending on gifts this year but will cut down on gift cards. However, we are determining that this is not the case.

The data complied so far this holiday season is conflicting and inconclusive about America's holiday spending tendencies this holiday season. We expect the sales to be about the same as last year, since we are still in the midst of an economic crisis. Black Friday lived up to its expectations and was one of the biggest shopping days of the year. Lines were long and businesses experienced a spike in sales that helped to make up for the lagging retail market.

Based on the numbers complied after Black Friday, The National Retail Federation estimated that the amount of money spent per shopper was $343.31, a decrease of 8 percent from last year’s $372.57. The NRF said this season’s shoppers stuck to their lists and bought only small-ticket items. This is to be expected as people have much less expendible income to spend on expensive and extravagant gifts. To conclude, we will have to wait until after the holiday season to truely appreciate how deveasting the economic crisis is on holiday shopping and consumer spending.

Sources:

http://www.slate.com/id/2237251/

http://www.google.com/hostednews/ap/article/ALeqM5gUKZVwCpm9cuY6cXgb2PVAKp0gSwD9CBF1C00
http://www.cw.ua.edu/post-thanksgiving-sales-draw-many-shoppers-1.2109084

Tapping The New Home-Buyer Tax Credit

Posted by: Christina Dove

House shopping usually slows down in the winter, as people put their home searches on hold to trim the tree, buy presents to put under it and avoid the chilly weather.

This winter, however, might be different, thanks to the extended--and expanded--first-time home-buyer tax credit.

"We're going to see far more interest in the fourth quarter than we generally do because of the tax credit," said Heather Fernandez, vice president of Trulia.com, a real estate search engine. Traffic surged on the site on Nov. 5, the day Congress approved the credit extension, she said.


The new law extends the tax credit for first-time home buyers and opens it up to some existing homeowners as well: The credit is now 10% of the home price, up to $8,000 for first-time buyers and up to $6,500 for repeat buyers.


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Shoppers Showed Up, but Spent on Bargains

By Lingxiao Li


More consumers flooded the nation’s stores on Thanksgiving weekend in search of bargains. Statistics have shown that some 195 million consumers visited stores and Web sites over the weekend, up from 172 million last year, according to the National Retail Federation, the trade group that reported sales results on Sunday afternoon. Average spending over the weekend, however, fell to $343.31 a person, from $372.57 a year ago. Total spending was $41.2 billion — about the same as last year.While retailers are encouraged by the number of Americans who shopped over Black Friday weekend, they know they have their work cut out for them to keep people coming back through Christmas,” Tracy Mullin, president and chief executive of the federation, said in a statement. “Shoppers can continue to expect retailers to focus on low prices and bargains through the end of December.The good news for retailers was that consumers opened their wallets for some discretionary items, albeit cheap ones. Shoppers not only bought gifts, but also took advantage of low prices to replace old household sundries, like irons, toasters and sheets. The NPD Group found that pent-up demand led some 63.8 percent of consumers to shop for themselves over the weekend.
Although the Friday after Thanksgiving is typically a busy day, a big turnout does not necessarily translate into significant profits or indicate how consumers will shop for the rest of the year. Last year, retailers posted the worst sales figures in decades. This year, sales are expected to be about the same as last Christmas.

http://www.nytimes.com/2009/11/30/business/30retail.html?_r=1&ref=your-money
http://www.nrf.com/modules.php?name=News&op=viewlive&sp_id=842
http://www.shop.org/c/journal_articles/view_article_content?groupId=1&articleId=1047&version=1.0

Save on Gift Giving

By Lingxiao Li



Holiday seasons are coming. Most of us are preparing gifts for family and friends.
If you’re planning to spend less on holiday gifts this season, instead of buying smaller and cheaper gifts for everyone on your list, consider setting up a high-tech Secret Santa program with your family or at your workplace.
With Secret Santa swaps, each member of the participating group is assigned another member to give a gift to anonymously, allowing participants to save because they only have to buy a gift for one person in the group. And setting up a swap no longer has to involve pulling names out of a hat. A slew of online sites and services can help you organize the swap and do the assigning for you.
Such sites say they have noticed more interest in the exchanges since the recession began. At one site, Elfster, users can create free group gift exchanges, specifying the spending limits and the e-mails of participating members. The site will then do the name drawing and let each participant know who they are buying a gift for. Users of the site can also send anonymous notes to others in their group (think “what does mom really want”) and create gift wish lists.
The number of gift exchanges started on Elfster in the week ending yesterday is up 58percent from the same period last year, which is more than double last year’s growth rate. There is more interest than ever in Secret Santa programs from consumers and also retailers, who are recognizing that consumers are looking for a more cost-effective holiday experience(NY Times).

http://bucks.blogs.nytimes.com/2009/12/01/secret-santa-sites-offer-another-way-to-save-on-gift-giving/?ref=your-money
http://bucks.blogs.nytimes.com/

GE New 5 Year Consumer Credit Card Extension

By Eric Gursky

STAMFORD, Conn. & GRAND RAPIDS, Mich.--(BUSINESS WIRE)--GE Capital Retail Consumer Finance, a consumer lending unit of General Electric Company (NYSE: GE) today announced a 5-year extension of its credit card program with family-owned, Midwest retailer Meijer, providing credit services and valuable programs to shoppers. The program started in 2003 with the launch of their first-ever private label credit card program for Meijer.

Since launching the private label credit card with GE, the relationship has expanded to include a general purpose Meijer MasterCard, and a prepaid card program both accepted at establishments outside of Meijer’s.

With 190 super-center locations and 174 gas stations in 5 states, Meijer credit cardholders enjoy a wide range of valuable benefits. The credit card program features a first purchase discount, monthly sale events, and 5 cent/gallon gas discount. The Meijer MasterCard also provides cardholders rewards on purchases made at Meijer as well as at other retailers.

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Shoppers Showed Up, but Spent on Bargains

Post by Shawn Chandok

Article by STEPHANIE ROSENBLOOM

More consumers flooded the nation’s stores on Thanksgiving weekend in search of bargains. But with retailers dangling rock-bottom prices and consumers only biting at less expensive merchandise like small appliances and winter clothes, the average amount spent by each shopper declined from last year.
Some 195 million consumers visited stores and Web sites over the weekend, up from 172 million last year, according to the National Retail Federation, the trade group that reported sales results on Sunday afternoon. Average spending over the weekend, however, fell to $343.31 a person, from $372.57 a year ago. Total spending was $41.2 billion — about the same as last year.

“While retailers are encouraged by the number of Americans who shopped over Black Friday weekend, they know they have their work cut out for them to keep people coming back through Christmas,” Tracy Mullin, president and chief executive of the federation, said in a statement. “Shoppers can continue to expect retailers to focus on low prices and bargains through the end of December.”

One report, from ShopperTrak, a consulting and research firm, showed spending on Friday alone ticked up 0.5 percent compared with last year, to $10.66 billion. A more complete picture of the first half of the Christmas season will not emerge until Thursday, when the nation’s chains report their November sales.

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Shop with no hassles on Cyber Monday: Online spending expected to exceed $486 million this season

Posted by: Andrew Pia

Written by: K.O. Jackson

Nov. 29--Concerns about the H1N1 virus and being around infected individuals may have kept some shoppers home on Black Friday.

But for anyone who missed out, there's always safe, at-home shopping on Cyber Monday.

Always the Monday after Black Friday, Cyber Monday is considered the unofficial start of the Christmas online shopping season.

Theresa D. Williams, director of the Center for Education and Research in Retailing at Indiana University's Kelly School of Business, said in-store crowds may be smaller this holiday shopping season in part because of an early flu season and the H1N1 virus.

Plus, people who have been sick and lost time at work, which can affect take-home pay, could have less money to spend, whether it be in stores or online.

"It's certainly going to have an impact on discretionary spending if you are paid hourly," said Williams, adding her center projects November-December retail sales to total $437 billion.

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