Plan Now for Next Holiday Season

Many families find themselves in financial difficulty at this time of year as a result of overspending during the holiday season. Don’t wait until the next holiday season to implement budget-wise strategies. Here are some tips to consider now to help you avoid the debt trap next year.

Plan ahead for spending. Make a reasonable spending plan with family members. Decide how much the family will budget for the season. If necessary, make adjustments in the number of gifts and the type of gifts according to your budget. Don’t forget to include hidden costs of the holiday such as clothing, extra groceries, carpet cleaning, wrapping paper, cards, postage and travel.

Guide children to be realistic about gift requests. It is OK to say to your child that a certain item is too expensive. Base gift purchasing decisions on available funds. Set a limit on what will be spent on each gift to avoid overspending. Set aside time for preview shopping so that you become an informed consumer. Options include store shopping, catalogue and internet browsing. Note prices and make final gift selections based on your budget.

One method of controlling special occasion spending is to pay for gifts in cash. Carry only the amount of cash budgeted for the item. When the cash runs out, stop shopping. This system helps to restrain impulse spending. Online shopping presents different challenges. Decide what you want before logging on to the computer. Use a secure server and site. Remember to include shipping and handling fees as part of the total price of the gift.

Consider sending greeting cards on-line to save time, energy and money. Gift cards or certificates can be welcome gift ideas. Other options include homemade gifts of food or craft items. A homemade gift certificate volunteering to baby-sit can be a welcome relief to a new mother. Pass sentimental heirlooms or mementos to children and grandchildren. Consider giving one gift for family units such as married couples and families with children. Assemble gift packages that all members can enjoy. A thoughtful theme basket including items associated with favorite activities of the family can be a fun gift.

Avoid last-minute shopping. The stress and added pressure will weaken your determination to stick to your budgeted amount. If you use a credit card, keep a running total of all charged purchases. Take advantage of after-holiday and end-of-season sales. Begin your shopping early, even a year ahead! That’s when many items are marked down by as much as 75%.

Now is the time to plan for next holiday season. Make a budget, divide it by 11 and put that amount into an interest-bearing savings account each month for your holiday spending.