Christmas spending, the smart way

Christmas is a wonderful time of year meant for celebrating with family and friends, and part of that celebration includes shopping. I can remember vividly going shopping with my parents as a child. The excitement of looking for presents and seeing the decorations and lights was only topped by the moments in Santa’s lap. As a parent of three young boys, I love to spend this time together as a family, making memories that will last a lifetime. Although shopping can be a joyful experience, it can also get expensive. As you begin searching for the perfect gifts for everyone, keep a few things in mind to help you avoid overspending while Christmas shopping.

First, make a list before you start your Christmas shopping and then stick to it. This is not only so you’ll remember what you want to buy, but also so you won’t be tempted to pick up every interesting item you see. You will likely come across “must haves” for a family member or friend, but instead of just adding another item, it’s better to remove something from the list.

Next, set up a budget. Regardless of how much you spend on Christmas presents, this extra expense can cause a financial hardship if you are not prepared for it. Write down your purchases and total them as soon as you bring them home so you can keep track of how much you’re spending. Most banks offer products and services to help you in the process. Debit Alert and online banking are quick tools that can help you track your expenditures. You get real time “alerts” to notify you of balances and purchases as they occur. This could help curb some of your impulse buys. If you find that you are getting close to going over your budget, consider making some changes to your list.

Try to avoid using credit cards whenever possible when Christmas shopping, unless you know you will be able to pay them off quickly. It doesn’t do any good to find a great sale if you end up paying all the money you saved in finance charges. According to financial advisor Dave Ramsey, more than 50 percent of all Christmas shoppers will spend more than they planned and incur debt. Christmas shopping should be enjoyable rather than a frustrating experience due to concerns that you’ll spend the rest of the year paying off your purchases.

Finally, start early and shop for the best deals. A quick way to do this is by comparing online. You may be surprised at how much some goods like electronics have fallen in price locally when compared to online retailers. Also, you may want to use your online price quote to see if a local retailer will match it. And remember, if you plan to haggle, bring the online price with you. Some local retailers might be willing to bargain. Plus, buying local can help keep jobs local.

Another great way to start early is to open a Christmas Club savings account. Although it may be too late for this year’s purchases, you will be getting ready for next year. You can use past years’ budgets to determine how much you should anticipate spending. You can then set aside funds each month in preparation of the December date.

As final point to ponder, if you find yourself swept up in the rush of the season and feel overwhelmed by the expense, stop! Remember that Christmas is about God’s grace and abundant gifts to humanity — the gifts of life, the love of family and friends, good food, wonderful carols and the greatest of all, His Son, Jesus.