Holidays
Keeping Spirits and Savings High This Holiday Season
December 2002
The Saavy Shopper
Keeping Spirits and Savings High This Holiday Season
Stop before you start
Think about what you’d like to buy each person ahead of time. “I know I seem like the Grinch,” says Howard Dvorkin, founder of Consolidated Credit Counseling Services, Inc., a nonprofit debt counseling group, “but if you sit down at your kitchen table and figure out who you need to buy a gift for and how much you want to spend you’ll be in much better shape financially.”
Making an itemized list will keep you focused on your gift-giving goals. “It will help avoid some of the overspending that happens at the last minute,” says Steven Rhode, co- founder of Myvesta™ (www.myvesta.org), an online financial counseling service.
Armed and ready
Once you finalize your list, always carry it with you so you can keep track of purchases. And shop around for the best deal. If you get started early enough, you’ll be able to find values instead of getting enticed by sales, he notes.
“A lot of people get in the malls, hear the jingle bells and forget what they planned for,” Dvorkin says
Wholesale clubs are famous for selling top-shelf items at bargain prices year-round, so be sure to keep them on your radar. Also, start clipping coupons, which are a great resource for saving money. Don’t shy away from gift cards. Your dad my like the freedom to pick out his own gift better than receiving yet another tie.
Paying for it
Once you’ve found the perfect sweater for your sister, be prepared before you hit the checkout line. Cash is king for smaller items because it can be tempting to overspend with credit cards. “Studies show that consumers typically spend 30% more when using credit cards,” Dvorkin says.
Check return policies and make sure you keep receipts. Debt experts say you shouldn’t avoid credit cards completely. Plastic is ideal for big-ticket items since most credit cards come with consumer protections, not to mention rewards.
Dvorkin advises holiday shoppers to use just one credit card. “If you spread your purchases among four or five different cards, it’s hard to keep track of how much you really spend,” he says.
Creating a budget for the holidays and sticking to it may seem about as much fun as sipping a diet soda in a room full of eggnog drinkers. But keeping those extra costs in check should make for a significantly happier New Year.
