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Financial tips to help prepare for the unexpected

Over the past year, most people have noticed how truly unpredictable life can be. While it’s impossible to predict what the next few months have in store, practicing a few fundamental financial skills can help you prepare for whatever comes next.

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Photo by Damir Spanic from Unsplash.com

Over the past year, most people have noticed how truly unpredictable life can be. While it’s impossible to predict what the next few months have in store, practicing a few fundamental financial skills can help you prepare for whatever comes next.

“According to a survey by Bank of America, 42% of (people) say their top financial goal over the next three months is to increase their savings,” said April Schneider, head of consumer and small business products at Bank of America. “The pandemic has highlighted the importance of building a safety net. Whether you’re looking to improve your current financial habits or starting from scratch, the most important thing is to make a plan that fits your needs and to stick with it.”

Consider these tips from Schneider:

Track your expenses. Review your expenses, big and small, and separate them into categories like groceries, transportation, utilities and entertainment. Then total the amounts in each category to get a better picture of your monthly expenses. Knowing how much you spend each month is the first step toward finding money to save.

Make a plan and set a budget. Categorize your expenses into wants versus needs. Groceries, rent and mortgage payments are examples of needs while streaming services are a want. Compare your expenses against your total household income to figure out if you have money left over to save or if you can find money to save by reducing your spending on nonessentials. For example, keep an eye out for phantom charges – or reoccurring payments – you may no longer need and redirect that money into savings.

“If you’re already saving, that’s great,” Schneider said. “Review your behaviors and see if there’s room for improvement. It’s also not too late if you haven’t begun saving – everyone has to start somewhere.”

Also keep in mind your budget is meant to adapt with your circumstances, so make sure you’re updating your budget as your life changes.

Make savings automatic. Saving can fit seamlessly into your everyday life when you set up automatic transfers from a checking to a savings account. Saving automatically helps prepare you for the future without adding to your to-do list. You can start small by automatically transferring a few dollars each week.

Build an emergency fund. Take a look at your current expenses versus total income to identify any extra wiggle room where you can save. Next put your emergency savings in a separate, but accessible, account to avoid temptation and accidental overspending.

“When building an emergency fund, I recommend saving enough money to cover 3-6 months of expenses,” Schneider said. “Contributing to an emergency fund keeps saving a priority and ensures you have financial flexibility should the unexpected occur.”

Use spending tools for savvy savings. Being a better saver means becoming a smarter spender. While looking for deals and price shopping can be helpful, there are times when it’s better to spend a little more for quality. For example, buying a more costly refrigerator may pay off in the long run compared to buying a cheaper option that could break down after a few months.

Another way to be a smarter spender is by earning rewards on your everyday purchases. Whether you’ve seen your costs shift from in-person to delivery services, using a card that adapts and rewards your spending can be a valuable asset.

While you may not know what the future holds, planning and actively taking steps can help you feel more secure and prepared for whatever it brings.

Find more tips at bettermoneyhabits.com.

Strategies

Consumer openness to smoke-impacted wines, offering new market opportunities

Consumers, particularly those that like smokey flavors in food and beverages, are open to drinking smoke-impacted wines. Also, the type of information on the label can modulate consumer acceptance.

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Certain groups of consumers appear to be open to drinking smoke-impacted wines, a finding in a new study that could provide market opportunities for winemakers increasingly dealing with the effects of wildfire smoke on grapes.

The study by researchers at Oregon State University and in New Zealand found that consumers, particularly those that like smokey flavors in food and beverages, are open to drinking smoke-impacted wines. They also found that the type of information on the label can modulate consumer acceptance.

“This research provides vital information for the wine industry,” said Elizabeth Tomasino, a professor of enology at Oregon State. “It demonstrates that with certain wine drinkers there is a potential market for these smoke-impacted wines.”

As the number and size of wildfires grow globally, the wine industry has been heavily impacted. For example, an economic analysis of the 2020 wildfires on the West Coast of the United States estimated wine industry losses up to $3.7 billion.

Following the 2020 fires, a research team, led by Oregon State scientists, received a $7.65 million grant from the U.S. Department of Agriculture to study the impact of smoke on wine.

Since then, the researchers have made several key advances. They discovered a class of compounds that contribute to smoke impact in grapes. They also developed spray-on coatings for grapes that have shown promise in preventing off flavors in wines that result from contact with wildfire smoke.

The latest research, published in the journal Food Research International, focuses on consumer attitudes toward smoke-impacted wine, a topic that has received very little attention.

For the study, Tomasino and Jenna Fryer, a doctoral student in her lab, sent smoke-impacted and non-smoke wine made from Oregon pinot noir grapes to New Zealand. There, working with Amanda Dupas de Matos and Joanne Hort at Massey University, they recruited 197 participants for the study.

They conducted the research in New Zealand, a region where winemaking has not been significantly impacted by wildfire, because they were interested in how people would respond to the wines. Future research will compare the results from New Zealand to findings from tasting panels in Oregon and Ohio.

With the research in New Zealand, two clusters of consumers were identified, one that liked the smoke-impacted wine (110 people) and the other that disliked it (87 people).

Findings of the study included:

  • The smoke-liking group had an average liking score of 6.86 out of a nine-point scale.
  • The smoke-disliking group had an average score of 3.26.
  • The introduction of labels, versus unlabeled wine, increased liking of the smoke-impacted wines for the smoke-dislikers from just over three to more than five on the nine-point scale. One of the labels overtly referenced wildfires with the words “Smoke Stack, experience the 2020 vintage with this unique, lightly smokey wine.”
  • The different labels didn’t have much of an impact on the smoke-likers, but their average scores were still above six, outpacing the dislikers.

The findings indicate that there are potential tools winemakers can use to make a smoke-impacted wine viable for the market, the researchers say. One option is blending, a common winemaking technique that in this case could involve mixing a smoke-impacted wine with a non-impacted wine. Winemakers can also take different approaches to labeling and marketing to specifically target the smoke-liking group.

“Our findings indicate that there is more forgiveness among consumers for these smokey wines than winemakers think,” Tomasino said. “It seems winemakers have a lot more options if they want to sell wine made with these grapes.”

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BizNews

Women more likely to choose wine with feminine labels

The more strongly the participants identified with other women, a phenomenon called “in-group identification,” the greater this effect was. A feminine label also influenced their expectation that they would like the wine better.

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To appeal to the majority of consumers, winemakers may want to pay as much attention to what’s on the bottle as what’s in it.

A three-part experimental study led by Washington State University researchers found that women were more inclined to purchase wine that had labels with feminine gender cues. The more strongly the participants identified with other women, a phenomenon called “in-group identification,” the greater this effect was. A feminine label also influenced their expectation that they would like the wine better.

With women representing 59% of U.S. wine consumers, the male-dominated field of winemaking might want to pay attention to the perceptions of this understudied group, said Ruiying Cai, lead author of the paper in the International Journal of Hospitality Management.  

“When you look at the market segments, women are actually purchasing a lot of wine. They are a large group,” said Cai, an assistant professor with WSU’s Carson College of Business. “We found that feminine cues speak to women consumers. They have more favorable attitudes toward the label and the wine itself. They were also expecting their overall sensory experience to be better, and they were more likely to purchase the wine.”

Gender cues often rely on stereotypes, and in initial tests for this research, a group of 90 women rated wine labels as more masculine when they featured rugged animals like wolves and stags as well as portraits of men. They designated labels as feminine that had cute animals, flowers and female portraits. Labels with castles and bunches of grapes were seen as neutral.

In two online experiments, a total of 324 women were shown fictitious wines with labels designed with these gendered cues. The participants showed higher intention to buy wines with a feminine label, such as a woman holding flowers, as opposed to a wine with a masculine label, such as a bulldog in a spiked collar. When asked about the expected sensory experience, they rated their liking of every sensory aspect higher, including the color, taste, aroma and aftertaste.

The participant’s level of wine expertise moderated their taste expectations but surprisingly, not their purchase intentions.

“Whether they were knowledgeable or less knowledgeable about wine, when they saw those feminine cues, they had a higher intention to buy the wine. The gender cue influence was so strong, it trumped the effect of that knowledge,” said co-author Christina Chi, a professor at WSU’s Carson College of Business.

A third experiment with another set of 138 women involved a taste test—also with a surprising finding. Researchers gave bottles of the same red wine with one of the gendered labels. More women who tasted the feminine-labeled wine ranked it higher in fruit flavors such as red current and blueberry than those who tasted the same wine with a masculine-cued label—and despite the fact those flavors were not dominant components in that particular wine. Women connected more mineral flavors with the masculine-labelled wine.

However, the participants who tasted the feminine-labelled wine reported liking it less than the women who tasted the masculine-labelled wines. The authors said this could be a result of the incongruence between the expected flavor influenced by the feminine label and the actual taste of the wine sample, which had a medium body, tannin and alcohol level.

Few studies have focused on the perceptions of women wine consumers in a field where 82% of the winemakers are men. That lack of perspective is very apparent on wine aisles, said Chi, noting that many vintners seem to favor masculine imagery like stallions, bulls and roosters–and one brand even features a prisoner in a jail cell.

“When designing the labels, winemakers should involve more women in the process, and it’s highly advisable to pilot test the labels among consumers for gender cues,” she said.

In addition to Cai and Chi, co-authors on this study include recent WSU graduate Demi Deng now at Auburn University and Robert Harrington of WSU.

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Strategies

Tips that businesses should consider during the holiday shopping season

Highlight your strengths—whether it’s one-of-a-kind products, exceptional offerings, or a strong local connection. Design your holiday strategy around what sets you apart and amplify these messages through social media and your marketing materials.

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As the holiday shopping season approaches, small businesses are gearing up for one of the busiest times of the year, from Black Friday to Small Business Saturday and beyond. 

SCORE, America’s largest network of volunteer, expert business mentors, offers entrepreneurs practical advice to make the most of the season.

Plan for the Holiday Rush

Reflect on last year’s performance. Did you meet your sales goals? Use your previous data to forecast sales, set promotional strategies and manage staffing needs to provide for outstanding customer care.

“It’s about more than just sales; it’s a powerful opportunity to connect with your community, attract new customers and reinforce relationships with loyal ones,” explains SCORE mentor Lizz Smoak.

If you plan on extending store hours during the holidays, communicate these updates with your team early so you are prepared to handle increased sales traffic. Ensure that employees are aware of the holiday schedule and have submitted any time-off requests to avoid last-minute scheduling conflicts. 

Create an Experience for Customers

“Engagement is key when customer traffic spikes during the holiday season,” notes SCORE mentor Christy Jones. “Consider offering curated gift guides or exclusive bundles to simplify decision-making for your customers, especially as you compete against large retailers like Amazon.” Plan a special event or connect with other local businesses to promote shopping small.

Stand Out from the Crowd

Consider how you can make your store or service the preferred choice. “Small business owners should contact their existing customers and highlight their unique level of service,” advises SCORE mentor John Doyle.

Highlight your strengths—whether it’s one-of-a-kind products, exceptional offerings, or a strong local connection. Design your holiday strategy around what sets you apart and amplify these messages through social media and your marketing materials.

Be E-Commerce Friendly

As you roll out holiday promotions, make sure that your digital doorstep is ready, too. Confirm your hours, location and contact info are updated on your website, Google Business Profile and other local listings. Many customers will be shopping on their phones so be sure your website is optimized for mobile use and that your most popular products are easy to find. A smooth checkout process is vital for keeping customers happy and encouraging repeat purchases.

“Small Business Saturday offers a prime opportunity for small businesses to step into the spotlight,” said SCORE CEO Bridget Weston. “With a strategic approach, small businesses can leverage this season and see big returns.”

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