According to the National Retail Federation, Americans will spend an estimated $475 billion during the upcoming holiday season. The average consumer will spend about $800. This is important stimulation for our economy, especially our retailers, yet holiday spending can be financially dangerous for some consumers who overdo it. The Consolidated Credit Counseling Services points out that many consumers continue paying for holiday purchases months or even years later.
A little planning can save time and money. Following are a few tips from the Consumer Federation of America, the Credit Union National Association, and Kiplinger that can help you to save money on your holiday spending.
Set a Budget – Before shopping, decide how much to spend, and don't forget to include the cost of gift wrap and postage.
Make a List – Listing all items to be purchased and their estimated cost will make staying within a budget easier.
Pay Cash – It is easier to overspend when using credit cards. Using cash or debit cards limits your spending to the cash you have available.
Pay off Credit Card Charges Quickly – If you do use credit for holiday spending, pay your credit card balance as soon as possible to avoid interest. If you have more than one credit card, use the card with the lowest interest rate.
Keep a Running Tally of Spending – At the end of each shopping trip, list all expenditures and deduct them from your holiday budget. Not only does it provide a visual record, but it allows you to see how much is left in the budget.
Shop Around – Surf the Internet and scan sale flyers for the best deals.
Open a Holiday Club Savings Account – Most banks and credit unions offer holiday club accounts to save for holidays. A set amount of money can be automatically transferred to the club account once a month or on each payday.
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