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Christmas Becomes A High-Tech Holiday

CCC Staff — Tue, 20 Nov 2012 21:26:35 +0000

1918 Eatons Santa Claus Parade

Christmas is a time for food, family, traditions...oh, and don't forget, holiday shopping. Year after year, we carry on classic holiday traditions from the past. Keeping the memories alive with traditional family side dishes, neighborhood holiday parades and the spirit of gift giving. Remembering the past is an important part of culture, but at the same time, we feel the need to add in our own modern day touches to create a more up-to-date tradition that fits our present day lives.

Adding in those modern day touches to our classic Christmas traditions is creating a trend towards a more "High-tech Holiday" as holiday shoppers, Credit card companies and even good ol' St. Nicholas are turning to mobile technology and the power of the internet this holiday season.

High-Tech Parade

2012 Santa Claus Parade - Photo by Brian Morton

Hundreds of thousands gathered in the streets of Toronto over the weekend, waiting for a chance to see St. Nick officially kick off the holiday season in the annual Santa Claus Parade. This year celebrated the 108th time the holiday tradition took place down the streets of Toronto. It also marked a new era for the parade as Santa Claus went digital.

"We want people to connect with the 108-year-old tradition, but in a way that allows them to share their memories and photos in a more media-rich environment,” said Barry Miller, parade board member, in a recent article "Santa Claus joins the digital revolution" by The Star.

In an effort to bring the Santa Claus Parade more up-to-date, parade directors created a smart phone app to help patrons track Santa along this years' route, along with a Facebook page to share tips on how best to view the show. They also created a dedicated YouTube channel to show video highlights from this year's parade, as well as others throughout it's 108 year history.

Digital Wish-List

The Santa Claus Parade is not the only organization turning to social networks this holiday season. Credit card companies are also using apps and social networking this Christmas, in an effort to assist consumers with their holiday shopping.

American Express is taking the lead this season with it's version of a digital wish list with their new Facebook app, Holiday Hotlist.

The American Express Holiday Hotlist allows users to share desired online items from hundreds of American Express merchants with family and friends on the popular social network, Facebook. Users no longer have to drop subtle hints about what's on their Christmas Wish-List, as their Holiday Hotlist automatically provides that information directly to their loved ones on Facebook.

That means no more guessing what to buy Uncle Bob and forget receiving generic gifts like that red scarf or cozy socks! With this high-tech wish list, you'll know exactly what to get your family/friends and they'll know exactly what to get you.

Virtual Shopping Carts

Not only is the tradition of the Christmas Wish List going high-tech this year, holiday shopping is continuing to go digital, as more & more shoppers trade in plastic shopping carts for virtual ones this Christmas.

According to a recent survey by American Express Canada, almost a quarter of respondents mentioned they would rather stay home and clean their toilets than venture to the shopping mall during the peak of the holiday season! In the same survey, 56 per cent of Canadians are planning to shop online this season, up five per cent from 2011.

Looks like the days of navigating congested parking lots & waiting in massive lines may soon be a way of the past!

What will be in those Virtual Carts this holiday?

Entertainment (57%)

Electronics (39%)

Clothing and accessories (38%)

Toys (28%)

(source: American Express Survey)

Applying modern technology to the traditions of our past has the potential to change the way we celebrate the holidays. A more "High-Tech Holiday" may alter the way we express our desires and shop for those we love. It may also make the holidays more efficient and more convenient...but, unfortunately, it still won't guarantee you a spot on Santa's Nice List!

Canadians Ready to Spend More this Holiday Season

Janet Hutchins — Fri, 02 Dec 2011 17:33:15 +0000

Canadians are preparing to spend more this holiday season. According to a recent survey from the Royal Bank of Canada, each Canadian plans to spend, on average, $15 more this year than last year. The average Canadians expect to spend about $640 on gifts this year. The number is higher, though, for Atlantic Canadians who report that they will spend $877 on gifts this year. They will also spend on decorations and entertaining -- to the tune of an extra $100 this year.

The news is being taken as a welcome sign that consumer sentiment toward the economy is improving. In the United States, Black Friday and Cyber Monday just broke records. Canadians are also shopping more, buying online, and visiting offline stores.

Making the Most of Your Holiday Spending

When planning holiday spending, it's important to make the most of it. According to a poll from TD Canada Trust, 80% of Canadians are influenced by discounts when making their holiday shopping decisions. There are plenty of good deals out there, so be sure to look for them. You can find good deals online, as well as in stores. Many Canadian retailers are starting to offer more deals before Christmas -- instead of waiting until Boxing Day for the best discounts (although you can still probably get great deals after Christmas).

You can also get more out of your holiday spending by using a credit card to maximize your rewards. Plan ahead, and earn a lot of points this holiday season. Earning perks and points and cash back. That way, you can offset some of your spending.

It's important, though, to budget for your holiday spending. This is because there's a good chance that you could overrun your planning. According to the TD Canada Trust survey, shoppers spent $521 more than planned last year. You don't want to be one of those, so it's importnat to track your spending and keep to a budget.

And, if you do decide to use a credit card, make sure you plan to pay it off as quickly as possible. The last thing you want to do is carry a balance.

Image source: Brandon Kua via Wikimedia Commons

Do You Practice Conscious Spending with Your Credit Cards?

Janet Hutchins — Tue, 11 Oct 2011 17:45:53 +0000

If you're being honest with yourself, it seems pretty obvious that credit cards often make it easy to spend without really thinking about what you're doing. It's so easy to just swipe your credit card and go on your way.

When you have one of the best Canadian credit cards, you might not think about what you are spending money on, and just go for it. However, this might be a quick way to financial problems. Conscious spending requires that you stop and think about what you are spending. While it is a little easier to spend consciously when you are using cash, or even a debit card, it is important to remember to take a step back before you use your credit card on a purchase.

Conscious Spending: Answer These Questions

Before you pull out the credit card for a purchase, you should make sure that your spending is keeping in line with your financial values and goals. Ask yourself these questions -- and be sure to answer them honestly:

Do I need this? Figure out whether or not you actually need the item. If you don't need it, then you might consider putting it back.
Why do I want this? Of course, there is nothing wrong with buying something you want, even if you don't need it. However, before you spend the money, ask why you want it. Do you want it because someone else has one? Or is it something that you truly want and will enjoy? Avoid making purchases to look good, or keep up with someone else. Instead, focus on buying things that you really want.
How often will I use this? Consider the true use you are going to get out of the item. Will you use it once and then place it on the shelf? Be honest about how often you are likely to use something. If you know you won't use it much, but need it for something specific, consider borrowing it, or renting it.
Where will I put it? One of the drawbacks to buying more stuff is that it is difficult to know where to put it. Do you have a place for it? If your home is becoming cluttered, maybe you should reconsider buying anything new until you have got rid of some of your other items.

Honestly answering these questions can help you evaluate whether or not you really should be spending money on something. You don't have to always be pinching pennies and living frugally, but you should think about your spending. Simply buying to buy can result in a build up of material items, and it can also lead to difficulty in reaching your financial goals. If you take the time to evaluate your purchases, you will find that the results are more satisfying, and that you waste less money on the less important things.

Image source: TomAlt via Wikimedia Commons

Don’t Break Your Budget this Christmas: Plan Your Spending Now

Janet Hutchins — Tue, 04 Oct 2011 16:30:58 +0000

Yes, it seems a little bit strange to plan your Christmas budget right now. After all, we haven't even reached Halloween yet! But, the truth is that it is vital that you plan ahead for events like Christmas. The entire holiday season represents an "unexpected" event that seems to cause budgetary strain whenever it arrives. You know Christmas is coming, but it still comes as a shock when your December budget blows up.

Remedy the problem by taking a few precautions that can help you spread out the cost of Christmas through October and November as well, rather than just trying to cram it all in during December. You don't want to have to resort to carrying a balance on your Canadian credit card to make your Christmas ends meet.

Make a List

The first thing to do is make a list. Indeed, creating a list is almost always a good idea when it comes to any budget goal. You can use your last year's spending as a guide. Figure out what you spent on food, decorations, gifts, entertaining and other expenses. Decide what you will buy this year for the holiday season, and estimate your costs. This will help you make a Christmas spending plan.

Figure Out How Much You Need to Set Aside

Now that you have a list, you can figure out how much you need to set aside until December/Christmas. If you think you will spend $600, you will need to set aside $200 each month to meet your requirements. You can break it down to $50 a week, or even to $7.14 a day (or round up to $8 a day to provide you with more room). Plan to spend $8 a day on Christmas related planning. If you don't spend the $8 that day, put the money into some sort of bank account (preferably a high yield savings account) that can help you build it up for pricier purchases down the road.

Keep an Eye Out for Sales and Discounts

Among the lists you should be making is a gift list for others. If you know what you are going to buy for your kids, or for your sister, you can keep an eye out. Watch for sales and discounts. Meanwhile, you will be saving your money in a high-yield account. When you see something on sale, whether it's a case of bubbly that can be used for a party, or a great deal on the digital photo frame you want to get for your mom, you can scoop it up for less. Spread out your purchases, starting now, and your bank account won't be as impacted.

Use Credit Card Rewards

If you are smart about your credit card spending, you can use rewards credit cards to help you this holiday season. You will still want to set money side on a daily or weekly basis, to make sure that you have what you need to pay off the credit card balance so that you aren't paying interest. But you will find that using your rewards credit card for holiday shopping can be a real help. You don't have to get into debt this holiday season, and you can build up cash back and other rewards without carrying a balance. Plan ahead, and you will find that this Christmas goes better than last year.

6 Weird Things You Can Buy with Your Credit Card

Janet Hutchins — Tue, 30 Aug 2011 14:54:47 +0000

You can buy just about anything with a credit card -- assuming the limit is high enough. If you have a credit limit of $15,000 to $20,000, there are a number of things you can buy online and charge to your card. However, there are also plenty of low cost options for you to use to spruce up your abode. Of course, the best result comes if you can use your rewards credit card -- and then pay off the balance. Here are some of the items that have been available to buy with your credit card:

1. JL421 Badonkadonk Land Cruiser/Tank

Let's be honest. This tank is awesome. However, apparently someone already bought it all out -- since it is no longer available online. The tank cost about the same as a car -- $19,999.95. This "recreational vehicle" was available for customizations and everything.

2. Friends!

One of the strangest successful eBay auctions was an auction for four Aussies to provide a weekend of fun, including beer and laughs. If you had $1,300, you could use your credit card to buy yourself friends, and an unforgettable weekend.

3. Radioactive Uranium Ore

You, too, can test your geiger counter. At least that's what you're supposed to do with this sample of uranium ore. If this product were still available on Amazon, I'm pretty sure there would people trying to use it to turn themselves into superheroes.

4. Moose Poop - As Jewelry

Nothing says "I love you" like a classy necklace with a moose poop pendant. The eBay seller promises that this is a genuine moose poop nugget from Maine. The price is $16.99 -- and shipping is free! This could be the jewel of your fine collection.

5. An Immortal Soul

Are you tired of your own soul? Well, you could get a shiny new one, for the right price. Someone actually bought a 20 year old boy's soul for $400. Normally, eBay would take such auctions down, but this one managed to squeak through. If you know where to look, it might be possible to get someone else's soul.

6. $40 in Pizza

Okay, so buying $40 in pizza with your credit card isn't so strange. The reason this item makes the list is because the $40 in pizza was bought by a millionaire with a stolen credit card. Millionaire dentist Richard Lewis Ludwig found a credit card on the ground, and proceeded to buy some pizza. When police arrested him, this formerly upstanding member of the community had $250 in his pocket. I guess you can't use a credit card to buy honesty.

This post was included in the Totally Money Blog Carnival at Canadian Finance Blog.

Back To School: 6 Things to Do As You Get Ready

Janet Hutchins — Tue, 09 Aug 2011 16:10:04 +0000

It's back to school time for many of us. The school year will be starting up again soon, and that means that there a number of things that need to be done in order for you to get your children ready for another year of learning. As you consider back to school, here are 6 things to do as summer draws to a close:

1. Go Through Last Year's School Supplies

The first thing to do is make sure that you are up to date on what your child already has. Have him or her try on the clothes worn last year, and check to see that they are in reasonably good condition. While part of the fun of back to school is getting new clothes, you shouldn't replace an entire wardrobe if there is no need to.

You should also go through backpacks, binders, pencils, pens and other school supplies. Figure out which items are still good for another year, and which items need to be replaced. Make a list of what you need. If you make a point to re-use some of the items, you will find that you can save some money with your back to school shopping.

2. Get Your Child Involved in Back to School

When you do your back to school shopping, make sure your child is involved. This can be a great chance to teach your children valuable financial lessons. Give them a set amount, and then have them use their own money when they go beyond that. You might be surprised at how much more careful they are once their own money is on the line.

3. Take Care of Checkups

Now is a great time to go to the eye doctor, dentist and pediatrician. Getting your child's eyes checked before the school year is especially important. You don't want to have a month or two of poor school performance before pinpointing the problem: That your child can't see what the teacher is writing on the board. See the dentist and the pediatrician as well, and get the year off to a good start (without taking your child out of class).

4. Get Back to a School Schedule

Technically, your child should have been reading all summer to keep his or her skills sharp. However, if this isn't the case, it's time to add a little more back in. It's also a great time to get back on to a school-type schedule. Start going to bed a little easier, and adding reading back into the routine. You want to make the transition as smoothly as possible, and that means that you need to start easing back into things now.

5. Take One More Staycation

It's probably a bit much to go on a full vacation, but you can take one more staycation as a family. A little frugal planning can ensure a fun summer fling before school starts. Consider using your Canadian credit card to earn a few more rewards points (just be sure to pay it off ASAP), and doing something fun close to home. It's a great way to enjoy one more great family memory before the school year starts.

6. Start Planning for Next Year

If you find that your budget is strained by this year's back to school expenses, now is the time to start planning for next year. Add up what you spend on extracurricular activities, school fees, and school supplies. Then, divide that number by 12. Put money in a high yield savings account designated as the "back to school" fund. Then, when next year rolls around, you won't have such a strain on your budget.

This post was included in the 49th Canadian Finance Carnival at Canadian Finance Blog, and in the Teaching and Learning Blog Carnival.

Mental health and Credit Card Use: Protect Your Loved Ones

Janet Hutchins — Fri, 22 Jul 2011 17:08:36 +0000

As the population ages, more and more seniors are showing signs of dementia. All types of dementia are on the rise around the world, and in Canada. As a result, it is important to monitor the spending of you affected loved ones. Dementia can result in expensive purchases with credit cards -- and there is little you can do if the business won't let you return merchandise bought someone with dementia. Even murkier are the concerns surrounding those with other mental health issues.

Dementia and Credit Card Spending

Many seniors, reports Ellen Roseman in the Toronto Star, begin spending a great deal when affected by dementia. Many older patients, especially those with Alzheimer's disease, might begin to lose their inhibitions about money, and begin spending more. Roseman shares the story about a 78 year old woman who began -- uncharacteristically -- buying jewellry using credit cards. Her bill reached nearly $13,000 before her husband realized what was happening and took action.

Even though the woman was diagnosed with Alzheimer's, her husband is having trouble returning some of the jewellry she bought. This is a common problem for those with dementia, and goes beyond credit card spending. Those with dementia might withdraw money from their bank accounts, or be more susceptible to scams. Roseman shares some ideas in her column about how to protect your loved ones with dementia from spending too much money, and we add some of our own:

Watch for small signs of changes to money behaviour.
Ask questions, and get a diagnosis, if you begin seeing changed behaviours -- especially with money.
Have bank accounts and credit card accounts flagged for unusual behaviors.
Have limits on credit cards lowered, as well as transactions at the bank monitored.
In some cases, it might be a good idea to have a financial guardian appointed.

What About Other Mental Health Issues and Credit Card Spending?

It's not just dementia that can affect mental health. Other mental health issues can impact financial decisions. From decisions about investments, to purchasing decisions, mental health issues can lead to poor money choices.

In addition to spending a great deal with credit cards, there are other money issues that come with mental health problems. Those vulnerable anxiety and depression might have a hard time coping with complex issues and making decisions about money. It can be intimidating, and sometimes it's easier to let things slide, or it feels good to just whip out the credit card and buy something.

We all have moments in which we are vulnerable. Many of us have our own issues with making poor money decisions during times of stress. Imagine if that situation was a regular part of life. It would be difficult to function making complex money decisions. This also applies to mental health issues that can arise from difficult situations in life, such as divorce. Getting help for your loved ones caught in poor money choices is important, especially when there are mental health issues involved.

Bottom Line

It is important to be aware of what is happening with your loved ones. Aging loved ones may fall prey to dementia, or you might have friends or family with mental health issues. Pay attention to changes in money behaviour, and work to limit the damage that your loved ones do to their finances through out of control credit card spending and other poor money decisions.

Image source: Frank Mayne via Wikimedia Commons

This post was included in the Carnival of Personal Finance at Dealerity.

Problem with Cool Credit Card Tech: Stores Aren’t Ready

Janet Hutchins — Tue, 17 May 2011 13:05:51 +0000

Not too long ago, one of my colleagues here at Credit Cards Canada went to the store and tried to pay with his chip and PIN card. The whole point of the card is that you are supposed to insert your card into the reader. The technology is designed to provide for more secure debit card transactions. However, my colleague discovered that he had to swipe his card -- the store didn't have a point-of-sale terminal compatible with chip and PIN.

Rolling Out New Credit Card Payment Technology

One of the issues with new credit card payment technology is that early adopters may not even get to use the new technology. In the U.S., a few years ago some credit card issuers began providing credit cards RFID technology. Simply wave your debit or credit card near the terminal, and the radio waves would help you complete the transaction. However, not every store in the U.S. is equipped with card readers compatible with the RFID technology. As a result, many Americans simply swipe, rather than take advantage of the RFID technology.

And, of course, before all Canadian stores can adopt chip and PIN, and before RFID becomes really widespread in the U.S., we've already got even newer payment technology coming out with near field communication (NFC). This technology would allow for you to use your cell phone as a credit card. It is also supposed to be quite secure. But how long will it take for stores to adopt terminals that are compatible with NFC? While we get excited about the cool credit card technology that would allow this sort of payment convenience, its widespread reality isn't exactly just around the corner.

You May Get a Digital Wallet, But Where Will You Use It?

The next big cool payment technology is the digital wallet. You are supposed to be able to use it cash free -- and plastic free, too. When Visa releases its digital wallet technology in the fall of 2011, you are supposed to be able to store all of your credit and debit account information in one app. You can choose which to use, and then wave it in front of the terminal, since the digital wallet makes use of NFC technology.

Once again, though, you might run into the problem of no one accepting your digital wallet. How many stores are likely to have terminals that support NFC by the fall? Making those sorts of upgrades can be expensive and time-consuming, and, in the present economy, many businesses are willing to pay the cost of upgrading swipe terminals to something that is supposed to be more secure. Even in Canada, the requirement for businesses to implement chip and PIN technology -- or be held accountable for fraudulent purchases -- has seen a number of delays.

Even with the delays, though, technology marches forward. Eventually, old terminals will have to be replaced. It's likely that in the next few years they'll be replaced by more advance terminals that can keep up with the developments in the best credit card payment technology. Until then, though, your digital wallet probably won't do you much good at the grocery store.

This post was included in the Integrated Finance Carnival at Integrated Loans.

North Americans Ready to Use Phones as Credit Cards

Janet Hutchins — Tue, 12 Apr 2011 16:18:35 +0000

It appears as though North Americans are just about ready to begin using phones as credit cards. We have already seen the evolution of smart phones into devices that can keep us connected -- no matter where we are. And, thanks to continued advancements in technology, it is even possible to use a smart phone as a credit card. Being able to scan your cell phone at check out, using at as credit card, could simplify matters a great deal.

Are we ready to use smart phones as credit cards? According Mobio, we are. A recent survey indicates that 94% of North Americans would make a mobile payment. As long as they were confident it was secure.

Security a Concern for Canadians and Americans Interested in Phones as Credit Cards

The biggest thing holding North Americans back from using their iPhones and Android phones as credit cards when going through the check out line is the worry that the transaction won't be secure. Assuage those fears, and the cell phone could muscle out credit cards -- just as it is muscling out GPS devices, music players and digital cameras.

IntoMobile breaks down the information from the Mobio survey to describe who is most interested in using cell phones for mobile payments:

When you break it down by age it’s the 35 to 44 year old segment that’s most interested in mobile payments, with 84% saying they’d use their mobile phone to make a purchase versus 77% overall. For the sexes it’s the men who say yes to mobile payments 85% of the time compared with 73% for women. And as for the country, 86% of Canadians give mobile payments a thumbs up versus just 72% of Americans.

Canadians appear ready to move forward with technology -- and the convenience it offers. Canadians are using credit cards more and more, and they are ahead of the U.S. in various forms money transfer and banking. It isn't too surprising that they are more interested in using mobile phones to make credit card payments.

There are already applications that allow you to store loyalty card information and credit card information on your smart phone. Additionally, you can even store coupons on your phone. All you need to do is have a bar code scanner get the information. However, advancements in technology could mean an even easier way to pay. All you would have to do is wave your phone near the card reader. Simple and convenient.

Of course, there are concerns associated with having all of your financial information on a mobile phone. What happens if your device is lost or stolen? You could end up with someone able to run up your credit cards fairly quickly. If you do decide to use your phone as a credit card, it is a good idea to limit which Canadian credit cards you keep on your phone, so potential thieves have access to fewer accounts. You can also get apps that allow you to remotely disable the phone so that it becomes unusable if you misplace it, or if it is stolen.

It seems inevitable that payment by cell phone is on the way. As long as you are careful, you should be able to use your smart phone as a credit card without too much trouble.

What do you think? Would you use your phone as a credit card?

Credit Card Use: Buy Things That Make Sense

Janet Hutchins — Fri, 08 Apr 2011 18:03:46 +0000

One of the most difficult habits to overcome is spending money on things that don't make a lot of sense. Sometimes, we tell ourselves that we are buying something because it's a "great deal." Other times, we convince ourselves that we really want something. (Or worse, that we "need" it.) Perhaps the worst excuse for buying something, though, is that you want the credit card rewards.

Rather than just spending money to spend money, it's better if you buy things that make sense.

Why Do You Want That?

There are a number of gimmicks out there, trying to convince you that you "need" something. Or, barring actual need, that you want something. But what will you do with it? And is it really worth putting on your credit card? If you don't pay it off immediately, you might end up paying interest on it. So you really want to pay interest on a laser pointer or some other useless gadget?

Before you buy something, ask yourself why you want to get it. You should try to figure out what you will use the item for, and how often it is likely to be used. If you want something because it looks cool, or because your neighbor has it, it might be a good idea to rethink your assessment.

Clearly, if you need something (really need it), buying it might not be a bad thing. However, if you merely want it, you should examine your options -- and your motives -- more closely. Figure out why you want it. If you enjoy playing video games, and know that you will spend hours on the game, it might be worth the purchase. However, buying something that you will be bored of after a couple of hours might be a waste of money.

Imposing a Personal Waiting Period

Even on things you think you "need", it can be a good idea to impose a purchase waiting period. A three to four day period on things you need can help you decide if really need something. Take a full 30 days to consider whether or not you want something, and you might discover that what you thought would be so cool, really isn't.

A waiting period is a good way to save money, and ensure that you are only buying things that make sense for you. Before you make a purchase, think about your values, and your money goals. If the purchase isn't in line with what's important to you, or if it doesn't help you keep on track with your financial goals, think twice about buying it.

It's nice to get the reward points, but you can get into debt trouble even with the best Canadian credit card. Instead, buy only what makes sense in your life, and only use your credit card to buy things that you would purchase anyway. And be sure to pay off your balance each month.