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Help! How Can I Reduce

My Holiday Spending?

Our Family Finance Guru Offers Some

Grinch-Like Solutions to This Annual Dilemma

By Elizabeth Lewin

nxious about the holidays?  Christmas can be a very expensive and frantic time for families.  Here are some suggestions to help you simplify your life and save money this month.

1. Set a budget and stick to it. Jeanne makes a budget for presents, decorations, and food.  She makes a list of gift recipients, including the amount she wants to spend for each, and carries this list in her pocketbook or wallet.  It’s hard not to be tempted to buy a gift for a friend who is not on the list, but remember all those $10 gifts can add up to a small fortune.  Keep track of spending on the list.

2. Avoid impulse shopping. Before buying anything, Jeanne takes her list to the mall but leaves her wallet and credit cards at home (she does remember to take her driver’s license).  She checks things out, comparing quality and price of similar products, and hunts for new things on the market that just might be right for some of the people on her list. She finds that delaying purchases helps her get the best deal.  Try it yourself, and you’ll find that you save money when you avoid buying the first thing you see.

Another trick to simplifying and saving money is sticking to the basics: Ask yourself if you really need to buy those extras on the computer, the big-screen monitor, or the top-of-the-line DVD player?  Simple is less costly, and your friends and family probably won’t notice the difference.

3. Edit your list–and go for communal gifts. If you have a large extended family, call a family pow-wow and make decisions on who’s going to give what to whom.  Your sisters, brothers and assorted in-laws are probably thinking they’d like to set some limits, too.  Suggest giving just to the little ones or set a dollar amount for each gift, if you feel you must buy for everyone.  Give a family gift instead of individual ones.   Buy your son and daughter-in-law a gift certificate to a favorite restaurant—and, of course, offer to do the babysitting. Get tickets to a show or sporting event and take your grandkids.

4. Rules for giving at the office. Throw everyone’s name into a hat and give a gift to the person whose name you pick out.  Decide on a dollar limit for all gifts.  That way you end up giving one gift instead of five or 10.  Alternatively, if you get along with your office mates, consider going to a fine restaurant for lunch or dinner together and dividing the bill evenly among each of you.

           5.  Cut down on catalogue spending. Holiday catalogues are so enticing. Elizabeth controls her catalogue spending by throwing them into the trash before they get into the house.  Avoidance is the best cure for a catalogue addict.   It’s easy to convince yourself that Dad would just love that robe on page 16.  But the shipping and handling charges can send you to the poor house—especially if you buy one item from this catalogue and something else from another. If you must let your fingers do the walking, stick to just a couple of catalogues.

                  6.  Pay cash when you can to avoid paying for this Christmas a year from now. Stick to your list and pay cash or write a check. And don’t succumb to all those television ads for the latest new toys for the youngsters in your family; as seductive as they are, those holiday ads can easily inflate the amount you planned to spend on the kids.

7.  Make & bake. Making gifts doesn’t always save money, but homemade gifts do add a personal touch, and they are always appreciated. Homemade cookies are welcome in any household, so get busy and bake all the family favorites.  Purchase decorative tins for your goodies and mail them to friends and family all over the country.  Or consider giving a jar of homemade preserves, relish, chutney, or pickles.  

Get your creative juices going early next year. Think about knitting or other crafts that you can make during the year, thus spreading out the expense. A lot of love and thought goes into homemade gifts; they’re one-of-a-kind and priceless.

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Financial planner Elizabeth Lewin is the co-author of the recently published book, “Family Finance” (DearbornTrade).  She is also the author of “Your Personal Financial Fitness Program,”  “Financial Fitness for Living Together,” and “Kiss the Rat Race Good-bye.”  Elizabeth has written articles for Redbook, New Choices, and Arthritis Today, among other magazines, and she has appeared on numerous national radio and television talk shows.

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