9 hints for holiday shopping
by Gail Vaz-Oxlade
Tuesday, November 23, 2010
Tuesday, November 23, 2010
People find it challenging to plan for the holiday season without blowing their budgets or their minds. If you didn't create a savings plan at the beginning of the year to accumulate the money you'd need, you may find it a test to really do the holidays justice without making a mess of your budget. You'll need to get creative.
1. Pretend You're Santa: make a list and check it twice.
Who doesn't need to be on there? To whom can you give a token gift to celebrate the season? How can you make your gift list fit within your budget? Secret Santa works at work, why not also among a brood of siblings? Once you have a list, jot down your gift ideas for each person on your list.
As you grab your list and your keys, grab a sandwich and a drink too. If you're going to be out shopping for a while, pack a healthy snack and some water. Hunger and thirst have a way of muddling your thinking. Keep your energy up so your brain (and self control) can work properly.
3. Don't self-gift while you're shopping.
According to an American Express survey, more than three-quarters of us buy something for ourselves while shopping for others. But the one-for-you-one-for-me approach to holiday shopping is just an excuse to be self-indulgent.
4. Give of yourself.
The very best gifts don't have to cost a lot. Offer up your time babysitting, cooking meals, house cleaning, massaging, sewing, knitting, transporting, or whatever else you're good at. Clip a picture of the service you'll provide and be clear on how often, as in "I'll babysit one weekend a month from February to June." Or better yet, make your own coupon book.
5. Shop with cash this holiday season.
Why? Because if you take a card, you'll think you can spend more and then you'll get stuck paying the minimum payments. At 18% interest, $500 in holiday spending would take seven years to pay off and cost $365 in interest. Ouch! According to credit counselors, nearly a third of us are still paying off the bills we racked up last year.
6. Don't accept those new store credit cards accounts you'll be offered.
It's tempting to get that 10% or 20% off your purchase for the day, but think for a minute: stores must be making a lot of money on interest and late fees in order to offer you that special deal. And if you're the sucker who ends up carrying a balance, you'll spend far more in interest than you saved on purchases. And, yes, opening and closing store cards can mess with your credit score.
7. Verify before you buy.
Before tossing anything into your shopping cart ask yourself why you are buying it. Are you just fulfilling your duty to give a gift? Are you showing off? Are you trying to keep up? Or are you giving something you can afford that your friend, sister, son or partner will truly enjoy receiving? Your mom, dad or BFF aren't going to be happier that you put yourself in financial stress rather than giving them something that might be slightly less and within your means. If they are judging you by your presents, maybe you shouldn't be buying them ANYTHING.
Include them with the present. People often accept gifts gracefully because they are good people, only to be stuck with something they'd never wear, never use, never re-gift. What a waste. Loads of people say, "if you need the gift receipt, I have one", but the gift recipient may feel it is rude to ask for it. Avoid the potential yuck and just include it with the present.
9. Use gift cards carefully.
People use gift cards to make the holiday season easier to manage. Since you're translating real money into retail dollars you can only spend in one place, make sure you choose a reputable retailer.
Want to avoid the sinking feeling that you're going to come out of the holidays with a hangover next year? Make a plan. Starting in January, set aside 1/12th of whatever you spend on the holidays this year. Planning is the key to everything -- know how much you'll need to spend on everything from gifts to wrapping, food to wine, hostess gifts to decorations, postage to travel, cards to photos, and then do it in bite-sized pieces. This time next year you can shop guilt-free and without worry of a holiday hangover.
Gail Vaz-Oxlade is host of Til Debt Do U$ Part on Slice and Global TV in Canada and CNBC in the U.S. She is now in production on a new series called "Princess," which will start airing this fall. The author of 13 books on money, Gail's latest book, Debt-Free Forever, is a best-seller in Canada and was released this past April in the US. Gail writes regularly for Yahoo! Canada Finance.
