Every year there are reports on the news about how deeply in debt people become every Christmas. It is possible to have a nice Christmas without maxing out the credit cards. Here are a few simple tips that could save you a bundle.
Hide the credit cards - By not using credit cards you are already a step ahead of the game. There’s no worry about the interest and all those payments that come due after the first of the year. If you are already using credit cards carefully you might be able to continue using them for Christmas gifts, just be sure to pay it off when the bill comes due.
Make a list - Sit down and make a list of all the people you would like to give gifts. Once the list is made, stick to it. Decide how much to spend on each person and write it beside each name. Then when you go shopping there will be a price range for each gift. It will help avoid overspending. Even a dollar over expected spending can add up if there is a large shopping list.
Draw names - Many families help cut back on holiday spending by drawing names. Each person in the family only shops for one other person whose name they have drawn. Instead of buying several gifts, even if they are inexpensive, each person can get one nicer gift. This makes shopping easier too. Instead of trying to fill a huge list, just take your time and focus on getting that “perfect” gift for just one person.
Shop ahead - Get organized and have good hiding places. By doing this you can purchase Christmas gifts all year round, taking advantage of after Christmas sales, out of season and clearance sales. Go ahead and wrap and label the gifts. This helps keep people from seeing what was purchased and you won’t forget which gift was for whom.
Lay-away - Some stores offer a lay-away program, so you can pay a little at a time each month. By doing this, you can budget things out over a period of time. By combining this with the list and budget plan, you can cut out the interest incurred using credit cards and still make a monthly payment.
Gift cards - While gift cards are convenient for gift giving, many people feel they are impersonal. Gift cards can also help you shop on a budget, if shopping ahead of time. Purchase the gift cards in the amount you can afford each week or month. Tuck them away in an envelope in a safe place until you have the amount needed to purchase the gifts. You can keep an eye out for sales on certain items this way, as well. Be sure to check to see if the cards have an expiration date. Some expire after a certain time once activated and others have no expiration date at all. Some are even “rechargeable” and more money can be added as needed.
No matter what plan you choose, the best thing is to get organized and plan ahead. Spur of the moment shopping is the worst for anyone’s budget. It’s too easy to just grab something on impulse and blow the best of intentions.
4 responses so far ↓
1 Aurelia // Nov 29, 2007 at 10:05 pm
Great Tips!! I created a list last month and attatched a dollar value to each family member and so far I’ve been good at sticking to it.
Aurelia
2 Pat // Nov 30, 2007 at 6:51 am
Another idea: see what is available around your home. We have 2 pecan trees outside our house that have so far yielded about 50 lbs of nuts. I plan on using them for baking, or spicing them (and of course, freeze a bunch!). Dollar stores sell some pretty and inexpensive containers to put them in. Voila! You have some neat gifts for teachers, neighbors, the postman (!) or unexpected company, that don’t break your budget!
3 Mara B. // Nov 30, 2007 at 9:46 am
We’re going to be making gifts this year in an effort to save money. I do have a few items I’ll be buying, but we won’t be spending as much as we have in the past. Good tips for other holidays or birthdays, as well.
4 Kathy Sherbert // Nov 30, 2007 at 3:40 pm
The greatest thing I did toward ending the Christmas credit card delima a few years ago, was to take out a Christmas club at the bank. I never missed the monthly amount that was automatically withdrawn from my bank account, and then in November, I got a nice
check, which I cashed, and put into envelopes for each person I had to buy for with the amount to be spent on each already decided. The next year, I increased the amount a little to save for a little vacation we like to take during Christmas break (I teach and have 2 weeks off.) Now, I see the need to increase it a little more for next year, to cover the extra we like to give to charities. It’s a great feeling to know the money is already there, we won’t be strained in the month we are buying, and that there’ll be no more bills after
Christmas. Also, our teenage kids know there’s a certain amount that will be spent on them, so they don’t ask for more than their limit, and therefore it’s easier to stay in budget.
Thanks,
Kathy
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