Having the Holiday Smarts

For many of us, Black Friday is the kick off to holiday shopping. On this day, stores will have door busters, sales, and (maybe) great deals on most items in the stores. It all has been planned to attract gift shopping. However, all this emphasis on spending leads many people to overspend. Those who do not budget their spending barely have any money for themselves and for their own needs. Or, if they splurge on themselves, they don’t have the money to buy presents for friends and family. So think ahead and learn a few ways to budget and save for the holidays.

Always plan your holiday budget before you start shopping! Make a list of everyone you plan on buying a present for. You might budget for one gift per person and mention on your list a possible gift you would like to get for each of them. When shopping, make sure you stick to your original budget because it can be very tempting to overspend!

If you have a credit card, check to see what your card benefits are. Some credit cards offer price protection, which might help if you bought something at one store, but later find it was less expensive somewhere else. Your card might cover the price difference of the item and give you a refund. All you have to do is file a claim within a certain period.

Your credit card might also offer holiday season rewards. A smart phone app called Wallaby can show you available rewards on your credit card.

Also be aware you do not have to buy gifts for everyone! An easy way to save on the holidays is to make gifts for people. Do a Google search or use Pinterest to find DIY holiday gift ideas. Making your gifts can be more personable than finding something on a store shelf.

Another option is to host a gift exchange during the holidays. Everyone draws a name out of a hat and the name you draw is the person you buy a gift for. This way you can buy something nice for one person, yet save money by shopping only for that one person. You could also create homemade “gift certificates” for friends and family. Examples of services you could offer include a month of babysitting, doing household chores for your parents, cooking someone a dinner, etc. Use your imagination and come up with something special that people will appreciate.

READERS, what do you think?

1.     Do you buy/make gifts for your friends and family this year? Do you make a budget ahead of time?

2.     Have you ever participated in a gift swap? Did you feel that it saved you money? Did people receive gifts they wanted that way? (It is important to give gifts that people will appreciate.)

3.     Would you make a personal gift certificate for someone? If so, what would you give?

Reference:

Steinberg, S. (2014, November 6). 15 Ways to avoid holiday debt: Spread the holiday cheer to your bank account this season. U.S. News & World Report. Retrieved November 12, 2014, from http://money.usnews.com/money/personal-finance/slideshows/15-ways-to-avoid-holiday-debt.