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Cyber Monday: A Digital Bank’s Take on the Shopping Extravaganza
Cyber Monday may help you get the best deals on holiday gifts.
Looking to grab holiday gifts at a more affordable price? Cyber Monday is one of the most popular shopping events of the year. It happens after Black Friday and helps you find great gifts for yourself and loved ones.
Prepare yourself for the holiday shopping season by knowing where to find the best Cyber Monday deals.
Key Takeaways
Cyber Monday is a major online shopping event that occurs on the Monday after Thanksgiving. Some retailers extend sales for the entire week.
Shoppers may find steeper discounts on some products than they’d find during Black Friday.
Cyber Monday often sees an increase in cybercrime and identity theft. Shoppers should take precautions by buying from secure websites and using two-factor authentication to protect payment information.
History of Cyber Monday and Cyber Week
The National Retail Federation created the term “Cyber Monday” in 2005 to describe the increase in online sales on the Monday after Thanksgiving.1 Some retailers have begun extending their Cyber Monday throughout the week after Thanksgiving, creating Cyber Week.2
Previously, most holiday sales happened on Black Friday in brick-and-mortar locations. Now stores offer similar deals online, appealing to people who don’t want to wait in lines for marked-down items.
As e-commerce grew throughout the early 2000s, Cyber Monday sales grew steadily. The shopping holiday saw the greatest increase during the COVID-19 pandemic, with Cyber Monday 2020 becoming the largest online shopping day in US history.3
Cyber Monday vs Black Friday
As mentioned, generally the difference between Cyber Monday and Black Friday is how the sales happen. Black Friday shopping events tend to lean toward retailers that have physical storefronts and maybe extend their sales online as well, whereas Cyber Monday events are almost exclusively online.4
While more people typically shop on Black Friday, people tend to spend more on Cyber Monday, with sales in 2023 reaching $12.4 billion.5
Each year the lines between the two shopping days blur more and more. In fact, many retailers are merging Black Friday offers with Cyber Monday specials, creating a new phenomenon known as Black Friday/Cyber Monday or BFCM sales.
Create a Cyber Week Budget
If you plan to shop during Cyber Week, create a clear budget now. Here are a few tips to help you create a budget that works.
Create a shopping list: Identify the products you’re looking for and any gift items you want to buy.
Set spending limits: Avoid the temptation of impulse buys by creating a shopping budget with reasonable spending limits.
Open a dedicated savings account: A dedicated savings account for your holiday savings may make it easier to cover your purchases. Choose an account that earns a competitive rate and compound interest to help your money grow on its own, potentially increasing your overall savings.
Top Cyber Monday Deals 2024
Most years, Cyber Monday sales include discounts on televisions, computers, smartphones, and more.6 Keep in mind that the exact sales you’ll find depend on the retailer you’re shopping with.
As the holiday season approaches, consider signing up for email newsletters with the retailers you hope to buy from. These newsletters help you stay in the loop and could give you early access to the list of sales and deals you’ll find (and maybe even a discount code or two!)
Paying for Cyber Week Purchases
If you’re worried about overspending on Cyber Monday, several options are available to help pay for your purchases.
Your savings: The best way to avoid going into debt is to use your holiday savings to pay for your Cyber Week purchases. By limiting your spending to what you’ve saved up, you may be able to avoid relying on credit cards to pay for items.
Credit cards: If you’re confident in your ability to pay off what you charge to your credit card, using your card may be a good option, especially if you have a rewards card, since you earn points or rewards on what you charge.
Buy now, pay later (BNPL): Buy now, pay later programs let you effectively finance the purchase of your items. You make an initial upfront payment when you make your purchase. The remaining amount is billed to your credit card or automatically withdrawn from your checking account. Some programs charge interest and fees, so make sure you understand the terms before you sign up.
Layaway programs: Layaway programs are a blast from the past, but you may have seen that they’ve made a comeback with certain retailers. These programs let you set items aside and pay for them over time. The exact terms vary by store, but buying on layaway is typically interest-free.
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Shop Safely During Cyber Week
Shopping online exposes you to different types of threats and security risks. Nearly 36% of shoppers have fallen victim to a holiday shopping scam, resulting in an average loss of $387 per incident.8 But there are ways to protect yourself from cybercriminals.
Look for security certificates: Look for URLs that use the “https://” before the rest of their web address. And if your browser tells you that a site isn’t secure, don’t proceed to the page.9
Use two-factor authentication: Especially those that store your payment information. This makes it harder for cybercriminals and hackers to intercept your data and steal your identity.10 You may also use a third-party payment service like PayPal or Apple Wallet to make purchases without giving websites your credit card information.11
Watch for phishing scams: If you receive an email from an address you don’t know or if you receive an email from your bank, credit card company, or other service provider asking you to verify your personal information, don’t. Contact the organization directly via their customer service line or directly by typing into your own browser, and make sure the request came from them.
Use strong passwords: If you set up an account when making a purchase or to take advantage of store loyalty programs, use strong passwords with upper and lower case letters, numbers, and symbols to help protect your information.
When in doubt, trust your instincts. If a site or email seems fishy or not legit, don’t provide the site with your personal information.12 This may help you avoid falling victim to the most common financial scams.
Is Cyber Monday Worth It?
You may be able to lock in lower prices on electronics and other popular items during Cyber Monday and Cyber Week sales events. Prices are often lower on technology items than they are during Black Friday, which could help you save on your holiday shopping.13
However, prices may still be lower at other points in the year. Leading up to Cyber Monday, consider using a browser extension to track prices and receive alerts when items you’re interested in go on sale.14
Post-Cyber Monday Money Management Tips
Once you finish your Cyber Monday and Cyber Week shopping, you want to make sure your finances are still in good shape. That means keeping track of what you’ve spent and maintaining receipts for each purchase. Those receipts could also come in handy if you need to return or exchange any of your purchases.
Keep track of payment due dates, whether for items on layaway or on a buy now, pay later program. Remember, if you miss a payment, you could end up having to pay fees or interest on the purchase.
If you find your holiday spending exceeded your budget, try to pay down your balance before any high interest kicks in. Two approaches that may help you tackle your debt include the debt avalanche and debt snowball method. You may also consider consolidating your holiday debt with a personal loan as these loans tend to have lower rates than credit cards.
Final Thoughts
Cyber Monday is one of the biggest shopping days of the year. Though it means you may be able to snag great deals on amazing products, you still want to keep your budget in mind. If you start saving ahead of time, you may be better able to make those purchases without stretching your budget or relying on credit cards.
Check out our guide on choosing the right savings account to prepare yourself for Cyber Monday.