Family Resource Management

Living for Today — Planning for Tomorrow

News You Can Use

Before the Holidays

If you want to save money, this is the time to make your resolutions -- not after the New Year.

Cut your gift list. The easiest way to reduce how much you spend during the holidays is to exchange gifts with fewer people than you have in the past. Are there a few people on your list that you can mark off this year? To avoid awkward situations, talk to those people in advance and agree that, in the name of saving money and reducing stress, you will forego the gifts but will get together to do something you both enjoy -- such as going to an art gallery or a sports event.
Find alternatives to purchased gifts. Maybe stopping abruptly on a gift-exchange with certain people does not feel right. But you do not have to go overboard, and you certainly are not obligated to buy a gift. Just ignore the advertising that implies that the expense of a gift is the measure of the feeling behind it. Try being creative with alternatives such as homemade treats, a coupon for your services such as setting up a home filing system, babysitting, pre-addressed and stamped envelopes so an older person can easily keep in touch, a family photo or a tax-deductible contribution to a charity.
Make a budget. Once you have figured out who you want to buy gifts for, you will do yourself a huge favor by determining your overall budget and having a general idea of how much you want -- and can afford -- to spend for each person. This will help you avoid the temptations and frustrations of last-minute impulse buying.
Spend within your budget. A budget has no purpose if you do not stick to it. This takes tremendous discipline, and you may want to enlist help. Shopping with someone who can provide the voice of reason is the best way to keep from overspending.
Get started early. Good deals are often available before the official holiday shopping season starts on the day after Thanksgiving. Prices are usually lower, you have more time to take advantage of mail order bargains and you can find some great deals on models that are being phased out toward the end of the year.
Look for good gifts that are also good buys. Learn about the features and options available on a particular product, especially expensive items such as cameras, video equipment, sporting goods, stereos and computers. Get specific product numbers before you shop around so you are not comparing apples to oranges. Read up on different makes and models so you will not be influenced by the more costly recommendations of high-pressure salespeople.
Once you've narrowed the field, look for bargains. Studies have shown major price variations -- often 50% or more -- in the same area for identical products, especially audio-video and computer equipment. Do not assume that prices are always lower in catalogs or on television shopping channels, no matter what their ads claim.
Know the store's return policies before you buy. If what you thought was a perfect gift for Aunt Martha turns out to be a duplicate or does not fit (her body or her tastes), you will want the store to allow Martha to return the item for a refund, credit or exchange. Because sales help is often transient during the holiday season, and temporary employees may not be fully informed of store policies, ask the clerk to write the refund policy on the receipt. You will need to hold onto the receipt anyway in case you want to return the gift.
Avoid buying unnecessary warranties. Many consumer products come with warranties, especially audio-video equipment and appliances. It may be worth the price to buy a more expensive model if it comes with an excellent performance guarantee. Resist the pressure to buy an extended warranty or service contract, usually offered on electronics and appliances. They often duplicate the product's existing warranty and rarely are worth the extra cost.
Keep records of all your purchases. To make sure you stay on track and will not be surprised by gigantic credit card bills after the New Year, keep all sales receipts. Receipts will also come in handy when monitoring your credit card statements.