Holiday Spending Tips

Holiday Spending Tips 

The prudent man and the prudent woman plan ahead before they buy for the holidays. With a few planning tips, you can limit overspending.

If you must cut back on your holiday spending this year, be sure to communicate that with your family. It doesn't mean that the holidays must be drastically different. Families need to talk about what's important to them this season and be willing to make adjustments if needed.

Set a holiday budget and keep track of what you spend. Don't just budget for the gifts. Figure the costs of food, entertainment, decorations, travel expenses, holiday cards and postage as well as new clothes for the season. If you can, review what you spent last year to help you set this year's budget.

Set spending limits for each person on your list as well as for the other items in your holiday plan. Write your limit on an envelope and keep it where you can see it. As you make a purchase, subtract the amount from the limit and place the receipt in the envelope.

Decide ahead of time how you are going to pay for your holiday spending. If you plan to pay with cash only, leave your credit cards at home when you shop. If you write checks, record each check in your register and figure your balance before writing another check. This will help you stay within your spending limit.

If you need or want to use a credit card, choose one to use for all your holiday spending. You can control your spending on one card much more easily than you can on three or four cards. Review your latest statement for each card to determine the annual interest rate. Use the one with the lowest rate. Only charge what you can afford to pay off each month. Be aware of your credit limit and know the guidelines if you use a charge card.

Don't be an impulse shopper. Start early enough so that you will not be pressured into buying the first thing you see in the store or catalog. This gives you time to shop around and take advantage of sales.

Talk with family and friends about drawing names for a gift exchange, setting dollar limits on gifts or not exchanging gifts among adults. You can make gifts by hand or give gift certificates promising your time or talents. Offer to give gifts for babysitting, car washing or a special talent such as photography. Family keepsakes or pictures can be gifts to treasure for years to come.

If entertaining family and friends takes a large part of your holiday budget, think about pitch-in dinners instead of trying to do all the work and expense yourself. You might also invite people for dessert and coffee or for a small luncheon, brunch or breakfast.

You can start planning for next year as early as this year. Be sure to take advantage of after-holiday sales. Good budgeting should be a year-around process, not just a holiday-time event.

Author: Barbara Rowe, Utah State University Extension Family Resource Management Specialist.

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