Holidays
Budgeting is the key to holiday financial health, experts recommend lots of planning
By CHARLOTTE TUCKER
Daily Record/Sunday News
Darlene Oberlander started her Christmas shopping months ago.
She has five children and seven grandchildren, and starting early is the only way to get it all done without breaking the bank, said Oberlander, a West Manchester Township resident. She's got the right idea, according to one expert. Not just for her sanity, but for her finances as well.
"The last-minute shopper is the scary one," said Howard Dvorkin, president and founder of Consolidated Credit Counseling Services, a Fort Lauderdale-based nonprofit company that helps people avoid debt. "He's the guy who shows up on Christmas Eve and will buy for whatever the price. That's when people get themselves in trouble."
At the same time, though, many shoppers put off making their purchases because stores essentially reward latecomers with slashed prices. Robert C. Boehner, a certified public accountant in Gettysburg noted that sometimes procrastinators do better than early shoppers financially.
"In the last few years, competition had driven sales right up until the holiday," he said. "If you go shopping the last weekend before Christmas, everybody's trying to outdo everybody else."
But he admitted, there is a down side.
"It can also be more stressful," he said.
Oberlander said she shops year-round for gifts. She once found a $90 cashmere sweater on sale for $7.95 and tucked it away for a holiday gift. Starting early allows shoppers time to figure out where the best deal is and to save money.
Friday afternoon, an online search for a Samsung 42-inch flat-panel plasma HDTV, for instance, returned prices ranging from $2,298.99 to $1,385.99.
Experts say the best way to stay out of debt this holiday season is to make a budget and stick to it.
"Put some kind of limit on spending, because it does add up," Boehner said. He said many of his clients complain around tax time that they spent too much at the end of the previous year. Many, too, are still paying their credit cards off in March and April, he said.
Making a budget was the top recommendation of several experts, but that they cautioned that the budget shouldn't only include money to be spent on gifts.
"The holidays are rife with expenses many of us don't even consider, Dvorkin said."
"You go to parties, but you don't show up empty-handed," he said. "You bring a bottle of wine. That's going to cost money. You give thank-you gifts to the mailman, the garbage man, the lawn guy, the pool guy. Those things add up."
Patty Ladegaard, a spokeswoman for LowerMyBills.com, an online site for comparison shopping, said taking an honest look at last year's holiday spending will give shoppers an idea of where to start their budgets.
"You can look at how last year's spending felt against your budget," she said. "It's possible that you overspent even if you stuck to a budget."
Holiday financial tips:
· Make a budget and stick to it
· Do some research ahead of time an item might be less expensive online
· Don't be tricked by hidden costs like shipping and taxes
· Leave the credit cards at home and pay in cash
· Know sales tactics: If buying the tie that matches the shirt blows your budget, don't cave
