Black Friday Best Practices in 2025

Black Friday has evolved from an American tradition into a worldwide shopping phenomenon. Every year, on the Friday after the 4th Thursday in November, retailers slash prices and consumers open their wallets. But is it really the best time to buy? And how can you participate without wrecking your budget?

Let's explore the history of this shopping holiday and share our best practices for navigating the sales.

A Spirit of Thanksgiving

The roots of Black Friday trace back to 1621, when English settlers in Plymouth Colony celebrated their first successful harvest. The Wampanoag people, who had taught the colonists agricultural techniques, joined in what became a multi-day feast.

Of course, the true history of this celebration is quite a bit more nuanced and historically sketchy. But the spirit of gratitude and abundance became intertwined with American identity, eventually evolving into the Thanksgiving holiday we know today.

A Short History of "Black" Friday

So why "Black" Friday? The term derives from 19th-century accounting practices. Bookkeepers traditionally used red ink to denote financial losses, reserving black ink for profits.

The day after Thanksgiving became known as the day when retailers finally moved from "the red" into "the black"—their first profitable day of the year. Whether this etymology is entirely accurate is debated, but the name stuck.

Shopping Fever

Today, Black Friday is big business. 187 million American shoppers spend upwards of $100 billion on Black Friday shopping events alone. The sales have expanded beyond a single day, now encompassing the entire week (or longer), including Cyber Monday for online deals.

But with so much money flying around, it's easy to get swept up in the excitement and spend more than you should. Here are our best practices for shopping smart.

1. Save and Budget First

Before Black Friday arrives, use budgeting tools to plan your purchases. Research what you actually need versus what you want. Look up historical prices to understand whether a "deal" is genuinely good or just clever marketing.

Wallet by BudgetBakers can help you set aside money specifically for Black Friday shopping, so you know exactly how much you can afford to spend.

2. Skip the Store

Here's a counterintuitive tip: online shopping reduces impulse purchases. When you're in a physical store surrounded by sale signs and other frenzied shoppers, it's easy to grab things you don't need.

Shopping online lets you take your time, compare prices, and avoid the psychological pressure of crowds. Plus, you can easily check competitor prices with just a few clicks.

3. Wait for Post-Christmas Deals

Black Friday isn't always the best time to buy. Shopping after Christmas often offers better value, particularly on items retailers are trying to clear from inventory.

If you can wait, surplus inventory in late December and January often sells at even deeper discounts than Black Friday prices.

4. Sign Up for Email Discounts

During the peak shopping season, retailers offer exclusive deals to their email subscribers. Capture these marketing offers by signing up for newsletters from your favorite stores.

Pro tip: create a separate email address for shopping newsletters to keep your main inbox clean while still catching the best deals.

5. Use Loyalty Programs

If you regularly shop at certain stores, maximize your rewards and points. Many loyalty programs offer extra points during Black Friday, which can translate to significant savings on future purchases.

Just don't let loyalty programs trick you into shopping somewhere more expensive just to earn points—do the math first.

6. Be Careful with Credit Cards

This is crucial: never spend beyond your ability to repay immediately. Credit card interest rates can quickly erase any savings you got from Black Friday deals.

If you can't pay off your credit card balance in full when the statement arrives, you're not saving money—you're going into debt. That 30% discount means nothing if you're paying 20% interest.

7. Forget Gift Cards

Here's a surprising statistic: Americans hold over $23 billion in unused gift card cash. Gift cards seem like convenient gifts, but they often go unspent or are used on items the recipient doesn't really want.

Consider giving cash, which is universally useful, or take the time to pick out something specific and meaningful.

8. Check Competitors

Never assume the first deal you see is the best one. Price comparison across retailers takes just minutes but can save you significant money.

Use price comparison websites and browser extensions to ensure you're getting the best available price. Sometimes the "amazing deal" at one store is just the regular price somewhere else.

The Bottom Line

Black Friday can be a great opportunity to save money on things you genuinely need. But it can also be a trap that leads to overspending on things you don't.

The key is preparation: know your budget, know what you need, and don't let the excitement override your financial common sense. Happy shopping!