Black Friday: History & Smart Shopping Tips

The day after Thanksgiving is synonymous with massive crowds, incredible deals, and the official kickoff of the holiday shopping season. But have you ever stopped to wonder, why is Black Friday a thing? It's more than just a day for deep discounts; it's a cultural and economic phenomenon with a fascinating history. Understanding its origins can help you navigate the sales frenzy smarter. And with modern financial tools like Buy Now, Pay Later from Gerald, you can shop now and pay later without the stress of fees, turning a chaotic day into a manageable and rewarding experience.

The Real History Behind the Name 'Black Friday'

Many believe the term "Black Friday" originated from the idea that it was the day retailers' finances moved from being "in the red" (a loss) to "in the black" (a profit) for the year. While this accounting-related explanation is popular and makes sense, the term's true origin is a bit darker. The name was first coined in the 1950s by Philadelphia police to describe the chaos that ensued when hordes of suburban shoppers and tourists flooded into the city for the Army-Navy football game, which was held on that Saturday. Police officers weren't allowed to take the day off and had to work extra-long shifts dealing with traffic jams, accidents, and shoplifting. As detailed by historians, the term didn't become widespread until the late 1980s, when retailers successfully rebranded it with the more positive "red to black" narrative.

From a Single Day to a Shopping Season

What started as a one-day event has morphed into a month-long shopping extravaganza. The rise of the internet extended the frenzy with Cyber Monday, and now, deals often start appearing at the beginning of November. This evolution is driven by fierce competition among retailers and changing consumer behavior. A significant portion of holiday shopping is now done online, which means you can hunt for deals without ever leaving your home. This shift has made it easier to compare prices and make informed decisions. The key is to avoid impulse buys and stick to a plan. Using a service that offers a pay later shopping option can help you stay on track and manage your cash flow effectively during this extended sales period.

The Psychology of the Sale: Why We Shop

Black Friday's power lies in its psychological triggers. Retailers use tactics like doorbuster deals, limited-time offers, and countdown timers to create a sense of urgency and scarcity. This can lead to a Fear of Missing Out (FOMO), compelling consumers to buy things they might not actually need. Understanding this can empower you to be a more mindful shopper. Before you click the 'buy now' button, ask yourself if it's a planned purchase or an impulse driven by a flashy discount. A great actionable tip is to make a list of what you need beforehand and only search for those items. This helps you avoid the temptation of a seemingly good deal on something you'll never use. It's about making the sales work for you, not the other way around.

Shop Smarter, Not Harder, This Black Friday

Navigating Black Friday successfully is all about preparation and using the right tools. With a solid strategy, you can get everything on your list without going into debt or feeling overwhelmed. Financial wellness should be the priority, even when deals are tempting.

Create a Detailed Budget

Before the sales even start, sit down and figure out how much you can realistically spend. The Consumer Financial Protection Bureau offers great resources for creating a household budget. Knowing your limit is the first step to avoiding overspending. Once you have a number, you can allocate funds for specific gifts or purchases. For more ideas, check out our blog on budgeting tips to help you prepare.

Leverage Fee-Free Buy Now, Pay Later

For larger online electronics purchases, a Buy Now, Pay Later plan can be a lifesaver. It allows you to break down the cost into smaller, manageable payments. However, many BNPL services come with hidden interest or late fees. Gerald is different. We offer a completely fee-free BNPL service, meaning no interest, no late fees, and no credit check. You can get that new TV or laptop now and pay for it over time without any extra cost, making it a truly smart way to shop.

Unlock a Cash Advance for Ultimate Flexibility

Sometimes, even with the best planning, you need a little extra cash for a surprise deal or an unexpected expense. Many people turn to a cash advance, but worry about high fees. With Gerald, after you make a purchase with our BNPL feature, you unlock the ability to get a fee-free cash advance. You can get an instant transfer directly to your bank account. It’s a perfect backup plan for your Black Friday shopping, providing a safety net without the predatory costs associated with traditional payday advance options. You can learn more with our cash advance app.

Is Black Friday Still Relevant in 2025?

With sales happening year-round, some shoppers question if Black Friday deals are as good as they used to be. The answer is mixed. While some of the deepest discounts are still reserved for this period, savvy shoppers know that good deals can be found at other times too. The key takeaway for 2025 is to do your research. Use price-tracking tools to see if a "deal" is genuinely a discount. Remember that the best deal is one that fits your budget. Don't feel pressured to shop just because it's Black Friday. Instead, use it as an opportunity to buy pre-planned items at a lower price, and utilize tools like an instant cash advance app for flexible, fee-free financial support.

Frequently Asked Questions

What is the main purpose of Black Friday?
Originally a term for post-Thanksgiving chaos, it's now known as the day retailers offer significant discounts to kick off the holiday shopping season and boost their profits for the year.
How can I avoid overspending on Black Friday?
The best way is to create a strict budget and a shopping list before the event. Use tools like Gerald's fee-free Buy Now, Pay Later to spread out payments and avoid using high-interest credit cards. Explore our money saving tips for more ideas.
Are Black Friday deals real?
Many are, but some retailers inflate original prices to make discounts seem larger. It's always a good idea to track prices for items you want in the weeks leading up to Black Friday to ensure you're getting a genuine deal.
Is a cash advance bad for your finances?
Traditional cash advance options can be costly due to high fees and interest. However, Gerald offers a fee-free cash advance, which can be a helpful tool for managing short-term cash flow without the debt trap.

Disclaimer: This article is for informational purposes only. Gerald is not affiliated with, endorsed by, or sponsored by HISTORY.com and Consumer Financial Protection Bureau. All trademarks mentioned are the property of their respective owners.