Review these helpful tips for managing your budget while you are planning for this holiday season. Be sure to develop a complete holiday budget that includes not only gifts but travel, entertaining and decorating costs.
Gifts
v Make a list of what you are going to buy for each person, and stick to it. This will keep you on budget.
v Draw names for gift giving if you have a large family.
v Buy gifts for children only.
v Volunteer to ring the bells for Salvation Army. Make it a family affair and teach the meaning of giving to others instead of purchasing everything on a child’s wish list.
v Embrace the holiday spirit and donate your time to serve holiday dinner to people at a homeless shelter.
v Start shopping early to avoid pricey, last-minute gifts.
v Recycle gift bags and wrapping paper from previous holidays.
v Use paper grocery bags for gift wrap and use pretty bows to dress up packages. Special meaning will be added to both giver and receiver if children are allowed to draw and color on the paper as well.
v Research layaway options.
v Comparison shop to ensure you are getting the best price.
v Charge smart. If shopping by credit card, use your credit card with the lowest interest rate. You will pay less in interest if you take a few months to repay your credit card debts.
v Use your credit card that offers rewards or cash back for purchases. However, watch interest rates on these cards, often they can be higher.
v A recently implemented federal law “Check 21,” will disable consumers from floating checks. The bottom line: before you write a check, be sure there is money in your checking account to make the purchase.
v If you know your bills will exceed your income, consider a seasonal job to bring in a little extra money. Many retail stores need extra help during the holidays, and you may even get an employee discount!
Travel
v Save on gasoline costs by carpooling to a relative’s house.
v If time allows, take a train or bus to your holiday destination as opposed to flying or driving. Tickets are generally less expensive.
v If you do have to fly, plan ahead to arrive at the airport early to find the least expensive parking available or have a friend of family member drop you off at the airport.
v Pack a cooler with beverages and snacks to save on food costs while on a road trip.
Entertaining and Decorating
v Shop dollar stores for holiday decorations, wrapping supplies and stocking stuffers.
v Big holiday meals can results in hefty grocery bills. Suggest a potluck to reduce costs.
v Have fun with tradition and string popcorn to use as garland on a tree.
v Dust off those old Christmas decorations your children made in years past. Have fun reminiscing with the children when they come home to visit.
v Hold a progressive dinner. Start at one person’s house for appetizers, go to the next house for the main course and have dessert at the last house.
If you find yourself feeling overwhelmed with post-holiday debt, relax. Employ these money management tips to regain control of your financial situation:
v Total your holiday charges so you have a clear picture on much you spent and how much you owe.
v Come up with a realistic plan/budget to pay off your credit card bills. If you try to put too much money towards your credit cards too quickly, you'll feel deprived or come up short on other bills. This will set you up for failure.
v Pay off credit cards with the highest interest rates first.
v Stop using your credit cards. Use cash to pay for necessities until you pay off your holiday debt.
v Start setting aside a little money every month for next holiday season, so you won't find yourself in the same situation next year.
v Save this year’s credit card statements to examine next year. You may be able to cut corners next year by learning from past habits.
Finally, if you feel your debt problem is beyond your control, go to www.familycredit.org or call toll-free 1-800-994-3328 to speak with a credit counselor who can help develop a plan with you.
|
