Spending Wisely for the Holidays by Bernice Wilson, Ph.D.

The holiday season is rapidly approaching. You will begin to notice stores displaying holiday decorations, increasing inventory, and gearing up for the rush that comes with holiday shopping. Nevertheless, before rushing out to begin your seasonal shopping, take time out to access your financial situation. Check to see how much money you have available to spend for the holidays. Ideally, you have planned and budgeted for the holidays throughout the year. Perhaps you began last January by developing a spending plan (budget), deciding how much you wanted to save by the end of the year, and putting money aside on a weekly or monthly basis. Or perhaps you did this through some type of a Christmas savings account with a financial institution or a social savings club. If you did, you're way ahead of the game.

If you need to trim holiday spending to stay within your budget, you have some options. You can still avoid anxiety and stress by following these holiday management tips by the Consumer Credit Education Foundation, the non-profit arm of the American Financial Services Association.

• Save in advance. Discipline yourself to save a few dollars from each paycheck during the year.
• Moonlight. Take a part-time job for a couple of months or work overtime. This is a great way to earn extra spending money for the holidays.
• Draw names. This will reduce spending, especially if your list of family and friends is long.
• Take advantage of seasonal bargains. Many stores begin year-end sales during the holiday season.
• Shop by catalog. This will help you stick to a budget since you are not enticed by the many choices offered in stores. Shopping by catalog also helps you avoid the holiday crowds.
• Allow time for planning and comparison shopping. Keep your budget in mind and shop carefully to get the best selection and price. In other words, budget for purchases. Write down names of people you are going to shop for along with a number of gift choices, including estimated costs and actual price paid.
• Borrow wisely. Credit cards and loans are frequently used to make up for a lack of holiday cash. Both allow you to repay the amount owed over a period of time, although you pay for this advantage in finance charge. You also need to remember to budget for the credit card and/or loan payments that you make.

If this holiday season has caught you without adequate money to spend for a joyous holiday, start now by correcting this situation for the future. Plan to have money for your holiday spending for next year and follow these tips.