Make Your Gift
List...and Check it Twice
Avoid last minute gift purchases
(November 16, 2004) - If
you're like many shoppers during the holidays, it's easy to get caught up
in all of the merry-making and cave in on credit card spending. What's one
more gift? Roll of wrapping paper? Or a dozen more gift cards for all of
your children's teachers?
Expenses can add up quickly,
especially the ones that are not in the budget.
"Having a budget plan for
holiday spending is really the key to financial peace of mind," explains
Jody Anderson with the LSS Financial Counseling Service. "Holiday
gift-giving is a wonderful tradition, but without a plan, you could still
be paying for this year's gifts when next Christmas rolls around."
Retailers are expecting that
shoppers will spend 4.5 percent more on holiday shopping this year over
last year, or $219.9 billion, according to National Retail Association.
Each household is expected to spend $702 on gifts for others, plus $90 on
themselves. Online spending is anticipated to increase 29% in November and
December over the comparable period last year, according to emarketer.
Anderson emphasizes that a
holiday spending plan should include all of the little things that are
often forgotten, including gift wrap, postage, holiday treats, and
decorations, as well as, small gifts for teachers and others.
"It's all of the small
expenses that really add up and often give us the biggest surprise when
credit card bills come due," Anderson said. "Our philosophy is this: The
better your plan, the happier your holiday will be."
Here are a few holiday
spending tips from the LSS Financial Counseling Service to help keep your
budget in the black:
-
Plan ahead. Hold a family
meeting to decide on gift giving guidelines.
-
Set limits and create a
holiday budget for all purchases.
-
Draw names instead of buying
for every friend or family member.
-
Include all the 'extras' in
your holiday budget.
-
Give yourself time to
comparison shop. Avoid last minute purchases.
-
There are always seasonal
bargains. Watch for sale flyers.
-
Shopping by catalog or through
an on-line secured web site can be a great way to save time and money.
-
Pay with cash whenever
possible. Don't be tempted to borrow for the holidays.
-
If you're short on cash for
holiday expenses, consider taking a part time job for the season. Many
retail and service industry employers hire extra help during the holidays.
-
Not enough funds to afford the
holiday you hoped for? It's not too early to start planning for next year!
Make this the last year that you are unprepared.
Take these tips to heart and
you'll breathe a lot easier in January when credit card statements begin
appearing in the mailbox. If you've kept to your budget, you'll also start
the New Year with less debt stress. But don't stop your financial planning
after the holidays. Plan for the coming year!
Need Help Setting Up A
Budget Or Getting Back On Track?
Lutheran Social Service has trained and certified credit counselors who
offer confidential financial counseling and debt management services
through in-office appointments, phone counseling or the Internet. Budget
counseling is free. Lutheran Social Service is a member of the National
Foundation for Credit Counseling (NFCC). For more information, call
1-888-577-2227 or visit
www.lssmn.org/debt
