 Money saving tips for the holidaysSure, your budget may be tighter than ever this year and your good intentions about putting aside money regularly for end-of-year presents and festivities never got off the ground. So, with the holidays just ahead, what do you do now?
Before you give in to the temptation of maxing out your credit cards, take heart. You don’t have to forgo gift giving or do the "re-gift" thing with that toaster you didn’t want and never took out of the box last year. You don’t have to go into debt this holiday season, either.
Here are money saving tips for shopping and celebrating that can help you avoid the post-holiday spending blues.
Get serious about a budgetIf your holiday budget is tighter than usual, take heart in the fact you aren’t alone. A pre-holiday survey conducted by marketing experts at BIGresearch found consumers are buying fewer gifts and doing more comparison shopping this year. In fact, 64 percent said they are spending far less on gifts in 2010 than in previous years.
Before you hit the stores, make a plan and be realistic about how much money you can afford to spend over the holidays. "Have a family meeting, talk about current challenges, and the need to avoid additional debts. Together, rethink the family philosophy about holidays and gift giving and what will be the ‘right’ thing to do to avoid financial challenges," Tahira K. Hira, Ph.D., professor of personal finance and consumer economics at Iowa State University, tells Synergy. "Set dollar limits and start to set aside some money now. Even if it is late in the season, it will help."
 Make your list and check it twice (or three times)Write down gift ideas and the spending range for each person on your holiday gift list. Make sure to also consider holiday decorations, extra food, and entertainment costs when you work out your holiday budget plan.
Think outside the (well-decorated and expensive gift) boxJust because you may have been a lavish gift-giver in the past doesn’t mean you have to opt for expensive gifts this year. Many friends and family members may be experiencing the repercussions of the slowed down economy and would welcome a friendly discussion on either skipping gifts this year or exchanging homemade goodies.
Often older relatives, such as great-aunts and grandparents have more "stuff" than they can use or want. "Think creatively about gifts that are good to communicate sentiments properly, but don’t require money. For example, consider a gift of time. Give an IOU to loved ones to do something that is meaningful and will cost money to the person if you did not do it," says Dr. Hira.
For example, a great present for an older relative is a homemade, typed up, and printed out coupon book that offers rides to the mall, the doctor’s office, the library, or an offer do to their laundry several times a year.
Avoid the credit card trapAlmost everyone uses credit cards these days and that makes it easy to whip out the handy plastic when you go holiday shopping. The pitfalls include going on a holiday gift buying spree and ending up spending more than you realized. Then later, being stuck with expensive credit card debt when you can’t pay off the balance in full.
"Using credit cards for holiday spending results in more debt, more payments, and even less money left at your discretion to meet needs in the future. You lose control over your own financial situation as more and more money is pre-committed to debt payments," Dr. Hira tells Synergy. "Leave credit cards at home when shopping and take the real money so you can stay within your budget guidelines. "
Stick to your planYou have your budget, cash in hand, and you have your well thought-out gift list. So what can go wrong? Plenty.
Dr. Hira says it’s important to recognize the holidays are an emotional time that can make you vulnerable to over-spending, despite your best intentions.
"Gifts are bought and given to make certain statements, to communicate things that we don’t know how to talk about. Gifts are also given in the form and fashion of what others are doing -- keeping up with Joneses," she notes. "At this time of year the strong marketing messages being given to people is to ignore the reality, follow the emotions, and just swipe their credit cards and join in the crowd."
Bottom line: be vigilant when you shop and stay focused. Just because stores are promoting sales with big discounts doesn’t necessarily mean the items are good buys. Crowded stores and Christmas bargains can lead to "frenzy spending," an adrenaline-fueled feeling of wanting to get all the shopping over with and buying items without careful consideration. Avoiding the most crowded retail days can help you stick to your plan.
 Shop online wiselyA new report by market research firm The NPD Group concludes online sales during this holiday season are likely to exceed their 2009 levels. There’s no doubt online shopping can save time and, sometimes, money (including the expense of driving from mall to mall).
Points to remember when you shop online:
- Don’t get carried away and charge too much. Check out other payment options that are closer to cash, such as Paypal.
- Shop the clearance and sale sections to find bargains on deeply discounted, quality gifts –- especially in online stores that sell books and movies.
- More online retailers than ever are offering promo codes that can add up to sizeable discounts, sometimes 10 to even 30 percent off. Do an online search to see if your retailer of choice has promo codes before making your purchase.
It really IS about the spirit of the seasonHaving a holiday party? Make it a potluck dinner, bring-your-own-bottle, casual get together. Or invite neighbors and family over for hot chocolate, homemade cookies, and a night of vintage holiday-themed movies.
Bottom line: the holidays should be a time of sharing with friends and families and warm memories. No expensive present is better than your presence. Some of the best holiday fun truly can be virtually free.
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