LANGLEY AIR FORCE BASE, Va. –
Managing holiday spending doesn't have to be difficult. Here are some tips to help manage holiday spending for this year and years to come.
Create a budget
The most important task is to create a budget to see how much money you have to spend during the holiday season. Then, make a list of everything you'll need to purchase, including items such as decorations, wrapping paper, food, travel, gifts, etc. Beside each item, estimate how much it will cost and compare that figure to the dollar amount your budget allows. As you begin to purchase items, be sure to cross them off your list as well as subtract them from your budgeted total. This will help you stay within your means and prevent impulse buying.
Discuss gift giving
Another way to reduce spending is to discuss gift giving before the shopping spree. Talk with family and friends about drawing names for a gift exchange, setting dollar limits on gifts or not exchanging gifts among adults. Another option would be to make gifts by hand or give gift certificates promising your time or talents for such things as babysitting, car washing or cleaning the garage.
Choose one credit card
After determining what you're going to buy, determine how you're going to buy it. If you plan to use a credit card, choose one for all your holiday spending. You can control your spending on one card more easily than on three or four cards. Be sure to use the card with the lowest interest rate and be careful not to exceed your spending limit to avoid over the limit fees. Check your statement monthly to monitor discrepancies and watch for unfamiliar charges.
There's always next year
Although this holiday season is already underway, it is never too early to start planning for next year. Begin by taking advantage of after-holiday sales, and don't forget to sign up for a "Christmas Club" or savings account for the following holiday season. To establish an account, set up an allotment at your bank of choice, and next year when it's time to begin your holiday shopping, you'll know exactly how much you can afford to spend. If you do your research, you can earn around 4.5 percent interest, which will add a few dollars to next year's shopping spree.
Proper budgeting should take place all year long; not just during the holidays. With proper financial planning, this holiday season can be a joyous time.