VOLUME 35 / NUMBER 1 / FALL 2022
Save More on Holiday Spending
It might seem early, but the countdown to the holidays has begun. Although the season may be a joyous time that reunites old friends and family members, a common dilemma is how to avoid pressure to overspend while still enjoying the tradition of buying presents for family members and friends.
A key strategy is to plan ahead. Begin by writing down the names of people you plan to buy gifts for — including at least one idea for each person. And consider a general idea of where you might find these gifts. If you are uncertain about ideas, browse through mail-order catalogs, TV advertisements and newspaper flyers. This could help you avoid the trap of making a decision while shopping in a store — a moment when impulse buying may break the budget.
Setting a limit on the number and cost of the gifts you plan to buy can help you stay within a budget and allow you to purchase appropriate gifts. Once you have your list and estimate the cost of the proposed purchases, adjust the list of specific gifts so the total of your expenditures fits into your holiday budget.
SHOPPING STRATEGY
To prevent overextending your finances, keep the following principles in mind:
- Shopping early and using the layaway plans offered by many stores might help you complete your buying before the "holiday rush" begins. But remember that some of the better sales come closer to the holidays.
- Whenever possible, pay by cash or check rather than by credit cards. High interest rates and the enticement to "pay later" may lead to a larger debt than you can afford.
- Consider exchanging names among a group of friends or family members with a set dollar limit to purchase a gift for one person. Remember: It’s the quality, not the quantity, that matters when giving gifts.
- Think about pooling resources with other family members to buy gifts for individuals, particularly if an expensive present is involved.
- Purchase "stocking stuffers" at a discount store in one trip. This will help you avoid impulse buys.
- Prevent the "return blues" by saving all receipts for gifts in one envelope. Label each slip with the items purchased, where they were purchased, and for whom.
- Handmade gifts and cards are sometimes the best. Use your creativity and talent to give the gift of yourself. It’s often a personal touch that is most appreciated!
- When in doubt, purchase a gift certificate from a person’s favorite store. With this type of gift, you avoid overspending because you are purchasing based on a predetermined amount. Chances are that your loved ones will have fun picking out the items they want.
Taking an organized approach to holiday shopping is the best way to ensure you’re getting the most value for your dollar.
For more in-depth assistance with budgeting, estate planning, investing or another financial planning topic, Stacey Braun Associates can help. The company has a long history of success in offering financial programs for unions without selling products or receiving commissions.
For $140 a year, MTA members receive annual access to three hours of financial planning services, written summaries and financial reports, password-protected access to Stacey Braun’s proprietary website and a 24-hour email help desk. For more information or to sign up, contact Jen Landicho by emailing jlandicho@staceybraun.com or calling 888.949.1925.
