It's that time of year again. The malls and discount stores are starting to display more red and green. Christmas trees, poinsettias and snow globes are popping up everywhere you turn. If you have kids, the "I really want a…" have started already, and if you're like many Americans, you're wondering how you'll survive another Thanksgiving and Christmas season.
It may sound like wishful thinking, but you can survive the holiday gift-giving and travel season without breaking the bank, and in an uncertain economy, that's a goal many share. Here are some general tips:
- Plan ahead, decide on your budget, put it on paper and stick to it. You've heard this advice before, but repetition doesn't diminish its value. Decide how much you can afford to spend and then decide on the actual gifts. If you're married, visit with your spouse regularly about what's been spent.
- Comparison shop. Many national discount chains have begun lowering the price on popular Christmas gifts now, and national toy store chains have matched prices on many products. Compare prices on the stores' websites, or if these stores are close enough together, check several at one time.
- Shop early. By starting your shopping in October or November, you will spread your Christmas budget across more months. This allows you the possibility of Christmas spending out of more paychecks and perhaps eliminating the need to use your credit cards to cover Christmas gifts.
- Shop late. Many families can't get together until January due to other family commitments. Wait to shop at after-Christmas sales for those friends and family.
- Avoid debt. If necessary, consider eliminating gifts for certain individuals or decide to draw names for gifts this year. No one wants to wake up to a big credit card statement in January, and while giving gifts is a sign of appreciation and affection, it is not smart to pay for that until next Christmas.
- Consider low-cost gift themes. Maybe you'd like to pool money and give to a favorite charity, or everyone can commit to buying a book or video at a used bookstore. Creative ideas don't cost a lot of money but can be a lot of fun.
- Look for seasonal employment. Many businesses need additional help during the busy Christmas season and would appreciate your time and talents.
- Look for travel discounts. Going over the river and through the woods to grandmother's house may not be cheap. Keep your car tuned up, tires properly inflated, obey posted speed limits and maintain your car. If you're looking for affordable airfare, consider traveling on off-peak days when demand — and thus prices — may be lower.
- Find extra money in your budget. Commit to saving the money you receive from your health care or childcare reimbursement account for money for Christmas gifts. Or clear out the clutter and have a garage sale to fund Christmas gifts. You can also cut out some nonessential expenses to make room for gifts for others (e.g., your daily pumpkin spice latte). Figure out how to make it at home and save $5 a day!
- Think about next Christmas. Christmas spending should not come as a surprise to anybody. Once the gifts are unwrapped, consider setting aside money each month to pay for gifts next Christmas.
Even though Christmas is quickly approaching, some careful planning now can make spending for the holidays less painful on your pocketbook.
Article
• Dec 28, 2020 