Holiday shopping tips: How to budget and save money on your gifts this year

Here are some ways to budget for and save on holiday gift shopping this year as the pinch of inflation is still felt acutely in consumers' wallets.

Here are some ways to budget for and save on holiday gift shopping this year as the pinch of inflation is still felt acutely in consumers' wallets.

Here are some ways to budget for and save on holiday gift shopping this year as the pinch of inflation is still felt acutely in consumers' wallets.

Here are some ways to budget for and save on holiday gift shopping this year as the pinch of inflation is still felt acutely in consumers' wallets.

CHICAGO (WLS) -- While inflation overall has been going down, prices are still high and consumers are feeling it as they shop for holiday gits.

The latest inflation rate is at 3.2%, which means it could be a challenge to buy for everyone on your list. Here are some tips to help save money on gifts this holiday season.

"We do not want the overwhelming thoughts of holiday shopping to derail building long term wealth, " said City Treasurer Melissa Conyears Ervin. "Number one, create a budget. That is so important; so easy, yet difficult to stick to"

Conyears Ervin advises your shopping budget should be 1.5% of your total income.

"So if you make $50,000 a year you want to try to have a budget of $750," she said.

Now that the budget is set, beware of layaway deals and store credit cards offers.

"We all love purchase now pay later. While that may be a great benefit during the holiday season, please make certain that you are reading the fine print because what we don't want to do is purchase now and pay more later," Conyears Ervin said.

And make sure you pay off all credit card balances.

Robin Strach avoids credit cards all together.

"I live a cash life, what I spend I am not going to have to pay later," she said.

While in stores, you can price match. The store may honor the lower price you find at a competitor's website.

And don't forget to use store rewards programs and promo codes, Conyears-Ervin said.

"We want to make sure we are stacking rewards. Many ways to build on cash back rewards get discounts on top of discounts," she explained.

"Things are more expensive without doubt but I still had to buy the gifts I had to buy," said Stratch.

A study from consumer experts at Bankrate said 73% of Americans will change the way they shop this year because of inflation.

The City of Chicago Treasurer also reminded people to support small businesses. Doing so can help the local economy and local residents.

EXCELSIOR, Minn. — Have you made your holiday list? A new survey found we'll spend nearly $900 to celebrate the holidays this year. It's an increase of more than $40 from last year.

While shoppers are spending more, sales are starting earlier and lasting longer.

No matter how you shop, there are ways to get more for your money this holiday season. A new National Retail Federation survey found 62% of people say sales and deals are even more important to them than last year. 

RELATED: Consumers expected to spend record amount on holiday shopping this season, says retail group

Stores know that, and they're responding, according to Dave Glaza, a shopping expert working in digital savings.

"We will see a lot more deals this holiday from all the retailers than they have in previous years," said Glaza, founder and CEO of DIGITS.

He says great deals are no longer relegated to a single day.

"If you wanted the best price you had to go out at 4 a.m. on Black Friday, but now with that business moving online a lot of retailers are offering deals the whole shopping season," he said. 

He also says shoppers are leaving money on the table if they're not signing up for loyalty programs. The largest one in Minnesota is Target Circle.  

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"Every week, about every day, about 600 different deals that are personalized in the app," he said. "All the way from milk and groceries to toys and TVs."

Wherever you choose to shop, Glaza has these four money-saving tips. First, make a list of what you want to buy. 

"It's likely that that product is going to be on deal sometime between now and Christmas," he said.

Second, shop early. Don't hesitate on a great deal. It could be gone if you wait too long.

Third, if convenience is key, consider deals on delivery services.

"Both Shipt and Instacart offer deals, especially this time of year they offer deals on annual memberships," he said.

Finally, take advantage of cash-back offers and other rewards.

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"Make sure you look at your credit card and what promotions they might be offering to get free rewards and cash back," he said.

An important note for you Amazon-only shoppers: Amazon rose to popularity by undercutting competitors. But today, it doesn't always have the best deal.

Target, Walmart, Cub, or any other store you shop may have lower prices.

Derek James anchors Saturday and Sunday evening newscasts and contributes stories during the week on "The 4."