Holiday Shopping on a Budget
Giving Gifts that Matter, Tips for Prioritizing Holiday Spending
Nov 26, 2008
The holiday seasons equals gift shopping and, for many Americans, accumulating even more credit card debt. Holiday shopping without debt can be a reality, however, with some changes in purchasing habits. Being intentional about gift giving can bring meaning and peace of mind back to holiday shopping. Enjoy the following tips for prioritizing holiday spending, and let sensibile shopping become a holiday tradition.
Create a Budget for Holiday Shopping
Be selective about gift giving . Make a list of the people with whom you exchange gifts, and who you want to receive a gift this year. The person at the office who never reciprocates- time to cross that person off the list. The children- do they really need fifteen presents each?
Prioritize the GIft List
Figure out how much you can afford to spend on gifts, and break it down by person. If the money doesn't go as far as you would like it to, think creatively. Consider the following questions:
What can I offer this person that will really mean something?
How much money do I have to spend to do this?
Often, the most meaningful gifts have nothing to do with money. Creative gifts are personal and meaningful, and be a life-saver to a stretched budget. Offer couples or families gifts they can share, or make coupons for special events together and include those in a card. Give home-made items such as knitting projects, carved objects, or other products from hobbies, and encourage children to do the same.
Balance Holiday Spending
To give the gift budget more flexibility, cut down on other areas of holiday spending. Send Christmas postcards or children's drawings instead of Christmas cards, email a Christmas letter to eliminate postage fees, encourage children to decorate brown paper for wrapping paper, have fewer sweets sitting around for the holidays, or insist on staying home to avoid the cost of gas.
Brainstorm a list of ways you can cut corners in your holiday festivities. Also, make a list of priorities for your family this holiday. Balance the two lists to make budget cuts that minimize disappointments and frustrations.
Smart Holiday Shopping
Enter stores with a pre-planned gift list, budgeted amount of money per gift, and an open mind for smart holiday shopping. Be careful and selective before purchasing any item, and ask yourself if the gift really is something that would mean something to the person.
Go shopping when you have adequate time, feel well physically, and are in a relatively good mood. Never buy on impulse, with time constraints, or while tired, hungry, or in a bad mood, as these are paths to poor purchase choices and acculumating more debt.
Use Credit Cards with Care
Smart holiday shopping uses a credit card wisely or not at all. Keep the credit card out of the wallet or, if using it is essential, make certain you can pay back the money within a month before being charged. If the money is not in your budget, ask yourself if the gift is worth the initial price plus 9%, 13%, 16%, 24% or whatever your credit card charges in interest per month. Thinking like this will, over time, discourage using the credit card unless absolutely necessary.
Avoid buying gifts to just buy a gift. Again, there are many ways to show someone you care without doing into debt for something they will forget about in a week.
Being selective, specific, and creative in holiday gift shopping are all key to eliminating credit card debt . With planning and purpose, this holiday season can stay within your financial means.
To save money buying clothes, try Clothes Shopping on a Budget.
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