Money Management

Making the Budget Commitment

Survive Holiday Shopping Without A Broken Budget

   In general, Americans are dealing with record amounts of personal debt.  Not to mention that record numbers of Americans have lost homes since the last holiday shopping season.  With those issues in mind, are there ways to celebrate the holidays without spending yourself into a broken budget?  Absolutely! 

   In so many ways, the holidays have become an overwhelming, extravagant, romanticized escape from daily life.  Simplicity during the holidays is viewed as something less than ideal.  Consequently, shoppers are often seeking the “perfect” gift for everyone on their list.   Regarding  the re-release of the Sears “Wish Book” , Richard Gerstein, Chief Marketing Officer for Sears, commented “We want to…inspire shoppers to grant the wishes of everyone on their list.”   If shoppers buy into the idea that every gift has to be the exact perfect gift at the perfect time for the recipient, budgets go completely out the window.  Before that happens, lower expectations for the gifts you will give AND the gifts you will receive.

   Lack of organization and planning is another way to spend too much.  It is easy to get caught up in the atmosphere and trappings of the season.  When that happens, no one is watching the money!  Before the holidays, create a specific budget for holiday purchases.  List the anticipated expenses and decide on a realistic amount to cover each one.  Then, set that money aside and stick to it!  For next year, investigate a Christmas Club account at your local credit union.  Designate an amount of each paycheck during the year to be deposited into this account and have cash on hand for every holiday season from now on!

   In most cases, the same merchandise is available from a variety of retailers.  Compare prices to keep from spending more than is necessary.  The internet is a great place to do this quickly and easily.  2 of the best known sites for this are BizRate and PriceGrabber.  eBay is also a great research tool when looking for the best price.  Start there to see what you can expect to pay.

   Consumers will definitely have the upper hand when shopping this year.  Retailers will be forced to compete with each other on prices, availability and customer service.  Toy recalls are an additional complication this year that may affect what toys are available as well as which items are popular.  Because of these issues, marketing and publicity departments will be working overtime getting customers in the stores and making sure they don’t leave empty handed!  Pay attention to the marketing campaigns and gimmicks that are sure to appear.  One of these gimmicks is the “hottest toy list” that is published by major toy retailers.  Don’t get taken in by the “hottest” toys just because the retailers say so.  Be aware of “impulse buying” and resist it.  Before buying anything, make sure it doesn’t sabotage the budget.

   Don’t shop early.  The closer the holiday gets, the lower prices will go.
  
   It’s a good bet that, the less time spent wandering aimlessly in stores and malls, the less money will be spent.  In addition to saving gas and time, it helps to shop efficiently.  Use one-stop retailers (Target, Sears, WalMart, etc.) to buy multiple gifts in the same trip.  If at all possible, know what to buy instead of trying to find something that will work.   The internet is great for investigating what is available and for shopping itself.  More and more consumers are opting to shop online and have gifts delivered directly to their doors.  Now that is efficiency!  Group gifts are also a great way to shop efficiently.  Either give the same thing to several people or make a charitable donation in the name of more than one person.

More than anything, don’t forget to have fun during the holidays!  Happy shopping!