10 Tips For Managing Holiday Spending

by Julie Crawshaw

That magical, whirlwind time between Thanksgiving and New Year's Day-when the pressure to buy is heaviest and managing spending can be difficult-is upon us.

A recent Gallup poll showed that American consumers will spend an average of more than $900 buying gifts this year.

Since that's a mean average figure, many of us need to spend a good bit less-and while nobody wants to think like Scrooge, good planning is clearly the key to managing holiday spending.

Use the 10 tips below to avoid having a "money hangover" when January 1st rolls around.

• Hold a family pow-wow: This is a great way to reaffirm the true meaning of the season by planning low or no-cost things the entire family can do to celebrate the season. Putting plans and events on your calendar and post it where everyone will see it daily. Knowing when you're going to bake cookies, go ice skating or caroling or attend a seasonal concert keeps everyone in the loop and creates a pleasant anticipatory glow.
• Make a list and check it twice: Do what Santa does and make a list first. Then remove anyone to whom you don't genuinely want to give a gift. Remember, the season is supposed to be about giving because you genuinely want to not because you feel guilt or obligation!
• Plan purchases and have alternate selections: Ask your "giftees" to suggest three or four things they would enjoy receiving within the price range you can spend. That way, if the sweater at the top of your sister's wish list is sold out, you have a couple of "back up" choices that cost about the same to fall back on.
• Draw a shopping map: As the big day for gift giving gets closer, it's easy to feel pressure to get your shopping done. But before you grab your car keys and head for the mall, sit down and map out a shopping route that begins with the store that's farthest from your home. Following a planned route saves gas and time. Knowing exactly where you plan to spend your money help keeps you from making budget-busting random or impulse purchases.
• Keep shopping forays short: Short trips make it easier to stay focused on buying only what you've planned to buy. They also guard against becoming overtired, which can cause you to mislay your list, lose receipts or make other avoidable errors.
• Stick to your budget: While this seems obvious, few people actually do it-much to the delight of credit card companies, whose January statements universally reflect our excessive holiday spending. Keep track of how much you spend on each shopping trip and deduct that amount from your overall gift budget. If you spend a bit more than anticipated for one person's gift, be sure to adjust your spending downward on one or more of the other gifts you plan to buy.
• Give personal gift certificates: When money is tight (and even when it's not) friends and family members can give personal gift certificates that entitle the recipient to a specific service. A certificate for a special dinner with all the recipient's favorite foods, an afternoon of babysitting, a day spent cleaning out the garage, getting the spring garden into shape or other service that saves your giftee time and labor are often among the best gifts of all.
• Keep receipts: Not every gift works out. The jeans you were sure would fit your brother may not. Your cousin may already have the CD you bought for her. Let recipients know that receipts are available if needed.
• Protect your purchases: Never leave packages into the trunk of your car and continue shopping. Experienced thieves who can pop your trunk lid in a few seconds frequent mall parking lots at this time of year.
• Plan for next year: If you'd like to have a few more seasonal decorations, don't buy them until December 26th, when merchants often reduce prices by as much as 75%. Saving money on next year's holiday dcor and gift wrapping supplies allows you to deduct those costs from the amount you need to set aside for next year's gift-giving. If you buy a gift you plan to give next year, be aware that it probably won't be returnable since most merchants impose a time limit on returns.