By CCCS Atlanta
The biggest shopping time of the year is here and retailers are rolling out the
red carpet for shoppers. The retailers are prepared, but are consumers?
"It is easy to get caught up in the excitement of the season," said Suzanne Boas, president of Consumer Credit Counseling Service of Greater Atlanta. "When the holidays are over, many consumers struggle to make even minimum payments on credit cards used to purchase gifts."
Shopping for the holidays can be a stressful and costly process and can take a lot of joy out of the season, but a little advanced planning can go a long way. CCCS offers holiday shopping tips to make this year's season better than ever.
Before you start shopping
Set a spending limit. Decide how much you can comfortably spend on gifts,
without relying on credit cards to finance purchases. Studies indicate that
people who use credit cards to buy gifts spend an average of 30 percent more
than people who use cash. When you add in all the finance charges over months,
or even years, your gift could cost you twice what you paid for it, or more.
If you start planning early in the year for your holiday shopping, you can start saving for it then, too. Open a holiday savings account at a bank or credit union, and you'll have all year to save. If you have direct deposit at work, have a set amount sent to a special savings account to ensure you can complete your holiday shopping without reaching for your credit cards.
Make your list; Check it twice
Make a list of all the people you would like to give gifts to. Be sure to
include family members, friends, coworkers, teachers, the mailman, the dog
groomer, and anyone else you'd like to give a gift to. Once you complete your
list of people, jot down the amount you'd like to spend on them, making sure
that your total does not exceed the spending limit you established. If it does,
you'll need to look at your list again, reducing how much you'll spend on
people, or reducing the number of people you will buy gifts for. Consider making
a chart with this information so you can add your actual expenditures as you
make purchases. If you save money on one gift, you might have more to allocate
to another. And, if you note things such as sizes, hobbies, favorite authors or
music style, you'll be even better prepared to pick just the right gift.
Put some extra thought into your gifts
Go through your list and start jotting down gift ideas for each person, keeping
in mind that some of the most appreciated gifts are not those that cost the most
money, but are the most meaningful. Handmade gifts, such as calendars, photo
albums, and framed children's artwork can provide a lifetime of smiles. Homemade
baked goods are always a hit. For the note writer in the family, stationery and
stamps make a great gift. A gardener will always appreciate a basket of
gardening tools and seeds. And never underestimate the power of a sentimental
letter, song, or poem for that special person on your list. These heartfelt
gifts are often the perfect choice.
Maybe the people on your gift list would prefer a service to a tangible item. Who wouldn't like a commitment for getting the car washed, the garage or gutters cleaned, the lawn mowed, the dog walked or even the dinner cooked? Write your gift of service out on a nice card or print it up on your computer. Sign, seal, wrap, and deliver.
Shop early; shop often; shop online
It is never too early to begin your holiday shopping. In fact, by planning ahead
you can take advantage of sales on seasonal items and stock up for the holidays,
birthdays, and more. Starting early also gives you time to compare prices on
like items at different retailers and online. If you know the model number of a
specific piece of electronic equipment, you can watch the weekend sale ads for
deals or use online comparison shopping sites to see where you might find the
best deal. Sites such as www.pricegrabber.com,
www.shopping.com, and www.mysimon.com
compare the prices of multiple retailers on the same item. You can then order
items online or purchase them locally. As online retailers may run free shipping
promotions, you might just save time and money ordering online. And don't forget
about non-traditional retailers—thrift stores, discount stores, consignment
shops, and specialty stores might have just what you're looking for.
Factor in all the extra costs
A ten dollar gift can quickly cost fifteen once you factor in the cost of gift
bags, ribbon, wrap, and cards. And if you have to ship your gifts, that can add
even more. A great way to save money is to purchase next year's wrapping and
cards just after the holidays, when most retailers mark them down 50 percent or
more. Other ways include making your own wrapping out of brown paper that you,
or your kids, decorate. Handmade cards are always a hit and can be much less
expensive than store bought cards. Always ask for free gift boxes and tissue
when making a purchase, and take advantage of free gift wrapping when it is
offered. And for shipping, ship early to ensure that you can take advantage of
ground transportation rates and still make sure your gift arrives in time for
the holidays.
If you will be traveling this holiday season, don't forget to add the cost of travel, gasoline, airfare, hotel stays, meals, and entertainment to your holiday budget.
Leave your credit cards at home
If you do use them, use them wisely. It is very tempting to spend more
than you've planned, especially if you're rushed for time and feeling the stress
of holiday shopping. Leaving your credit cards at home will help ensure that you
will stick to your budget, even if it means spending a little more time looking
for the right gift.
There are occasions when paying by credit is necessary, such as online
purchases, or airline tickets. There are special protections for credit card
purchases, such as chargeback rights, and the ability to dispute items not
delivered as promised, so think strategically when to use your cards. Use cards
with the lowest interest rate and, ideally, only spend what you can afford to
pay off when the bills come in.
Put off some gift giving
If there are family and friends that you won't see until after the holidays,
agree to trade gifts at that point. This way you'll be able to take advantage of
post-holiday sales as well as spread out your purchases.
Enjoy the true gifts of the season
While giving and receiving gifts can be nice, the true gift of the holiday
season is the time that families and friends spend together. Get friends and
family together to volunteer at a food bank, an organization that provides toys
for underprivileged children, or other organizations that are especially busy
during the holiday season. You can enjoy each other, spread some holiday cheer
and save money, while building memories that will be cherished long after the
holidays are a distant memory.
About CCCS of Atlanta
Consumer Credit Counseling Service of Atlanta is a nonprofit, community service
agency dedicated to empowering people to achieve a lifetime of economic freedom.
CCCS Atlanta provides free, confidential budget counseling, community and
personal money management education, debt management programs, and comprehensive
housing counseling. Contact CCCS Atlanta by phone at 1-888-771-HOPE (4673), or
visit the Web
site.