Christmas Shopping Tips to Keep Your Holiday Spending Under Control
November 14, 2008
Do the holidays put a strain on your budget? It can be one of most expensive times of the year; it’s easy to lose control of your spending with all the expenses for gifts, entertainment, travel, and even higher heating costs. Here are some tips for taking control of your money this Christmas season.
Create a holiday budget: If you already have credit card debt you don’t want to increase it and if you’re debt free you certainly want to stay that way. Set a spending number you will not exceed and start setting aside cash in an account to cover it. When should you make the budget? As early in the year as possible, but if you haven’t started shopping yet, figure out how much money you can realistically set aside and stay as close to that number as you can.
Avoid the binge: Staying on a financial diet can be tough. Permit yourself to stray a bit, but commit to avoiding ANY unplanned purchase above a certain threshold, such as $25.
Revamp your gift policy for all the adults on your list: Does everyone on your gift list over the age of 21 really need a present? The answer is as individual as your family and friends, but if you think it might be welcome, make a suggestion for a gift drawing, a budget limit, a moratorium on gifts or some other alternative where you trade off gifts for quality time. For instance, you might agree to take each other out to dinner during the New Year or find some other fun way to spend time together. You could help a friend or family member with a household project that could save them money. In any case, you’ll save money and gas wandering around the mall wondering what to buy, and personal time might be more enjoyable in the long run.
Go debit: Debit cards wearing a bankcard logo are typically welcome at most stores where credit cards are accepted. This way, you pay cash without carrying cash. If you don’t have such a card, you can probably get one from your bank to replace your traditional ATM card, but remember to tell them to limit your buying power to the cash balance in your account.
Start your shopping list for next year: With your budget figure in mind, start jotting down items when your kids or other friends and family members mention something they want. If it’s something you know they’ll definitely want, keep an eye peeled for that item on sale before the holiday craziness begins. Granted, you might see an item at deep discount when the holiday season officially begins, but you won’t need to burn gasoline or fight your way into parking lots and through crowds to get it, which may be worth the whole difference in price.
Price gifts online, then compare by phone: Whether you plan to shop online is a separate issue, but browsing online can be a very good idea. “Shop-bot” websites like mySimon.com or cheapuncle.com can help you determine general price ranges for gifts you need that are sold online. Once you have those ranges, get on the phone and determine whether you can buy the same items more affordably at retailers close to home – again, save gas whenever possible.
Don’t forget the coupons: Coupons aren’t just in newspapers or direct mail anymore. If you know particular stores where you’ll shop, get on their e-mail lists – you’ll start getting coupons and news of specials on a regular basis. Now you can even sign up to receive mobile coupons on your cell phone, just take your phone into the store and show them the coupon for some Christmas deals. Also, if you do shop online, sites like BradsDeals.com and CouponCabin.com have promotional codes that you can type in for discounts before you hit the “total” button on an order.
Don’t forget taxes, shipping or fine print when shopping online: Online prices might look like a great deal until you realize you may be spending another 20 percent of the gift’s price to get it to your house or the recipient. Here are tips for saving money on shipping when shopping online. Also, read product descriptions very carefully to make sure what you’re buying contains all the features of the item that you could buy at the store. At the same time, if there is a legal opportunity to avoid paying sales tax, watch for that.
Allocate spending for charity: You can either make charity a separate item in your annual budget or part of your holiday budget, but if there are specific charities you want to support by yearend, it’s a good idea to decide on those amounts before the holiday shopping season gets underway. This way, you’ll support the organizations you wish to without going outside your budget. Also, don’t forget to check for employer matching contributions or if they’ll consider gifts of appreciated stocks rather than cash if it fits your charitable goals and tax situation. Here a few simple ways you can even donate money while you shop.
This article on Christmas shopping tips is produced in association with the Financial Planning Association (FPA), the leadership and advocacy organization connecting those who provide, support and benefit from professional financial planning.
[...] Christmas Shopping Tips to Keep Your Holiday Spending Under Control. This article is the antithesis of the piece I wrote for PC World in which I described how to find the best bargains on tech items this holiday season. When I originally asked a few colleagues for input, J.D. from Get Rich Slowly suggested I mention Buy Nothing Day. The blurb was eliminated by the editor. Rather than searching for bargains bargains on the “popular” electronics, maybe it’s time to cut back on shopping overall. [...]
I wanted to thank you for posting these great tips on how to manage
spending over the holidays. It’s always so tempting to regard Christmas
as a time that’s exempt from any financial planning. Staying away from
credit cards, doing more online shopping and online comparative research
are all activities that are certainly important given the current
environment. For your readers who are online shopping, I would like to
add that there are now many ways to pay with cash online, just as they
can in stores. eBillme is one method that does not require any credit
at all, and is free to use. It’s something like debit, but includes
buyer protection that caters specifically to online shoppers. eBillMe
has holiday gift deals that you can pay for in cash from your bank account.
There are also special rebates and a long list of stores that offer this method
of payment - so you can do all your shopping online without ever lifting a credit card.
Happy holidays, and I wish all your readers happy spending management.