Holiday Shopping on a Budget

According to a recent Reuters poll, roughly four out of 10 people say they’ll be spending less on gifts this season. Here, six holiday shopping tips to help you rein in the spending.

Make a list. Before you drive to the mall or shop online, figure out for whom you’re buying and how much you want to spend. Include everyone, from family members to the person who delivers your newspaper. Add it all up and take a reality check: Can you afford to spend this much, or will you be paying off the bill until next July? Trim your spending if necessary. If you come from a large family, consider starting a Secret Santa tradition so you’ll be buying for only one person instead of the whole brood.

Be cautious with credit. It’s tempting to overspend when you have a wallet full of plastic, but paying for presents with cash or debit means you won’t get in over your head. If you must use credit, limit yourself to one card to consolidate and track your spending. Pick one that offers the lowest interest rate and the most rewards points — that way, your holiday spending can help pay for your summer vacation or another future expenditure.

Set expectations. Kids may ask for a lot of stuff, but they don’t actually think they’ll get all of it. If your son’s wish list is a mile long, have him rank his top five choices, fewer if he’s asking for pricey items.

Think creatively. An expensive bottle of perfume is a lovely gift for your sister, but she may appreciate a night of free babysitting even more — and it’ll save you a bundle. A festive box of homemade cookies can be a great present for your neighbor or your son’s kindergarten teacher. Remember, it’s the thought that counts, not the price tag.Be a smart shopper. Comparison-shopping sites such as PriceGrabber.com and BizRate.com should be your first stop if you’re making big-ticket purchases this season. Spend a few minutes flipping through the flyers too. Some retailers will match a competitor’s lower price if you bring it to their attention.

Take the freebies. Retailers are competing hard for your business with all sorts of deals and promotions. Another holiday shopping tip is to take advantage of free shipping online and check for coupons at megasites like RetailMeNot.com that offer discounts at thousands of stores. If you’re shopping in stores, don’t forget to ask for free gift boxes and tissue paper.

About the author: Jennifer Gill is a New Jersey–based freelancer who writes about personal finance, the workplace and small business. Her stories have appeared in publications such as Inc., Real Simple and Working Mother.

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Member Comments

1. Posted 12/04/2008 at 18:35 PM by blanch

   My family has decided to only give gifts to the children. An ornament for each family's tree will be enough to remember those we love. And for all those parties coming up, start baking each weekend and bring a jar of cookies as housewarming gifts instead of the normal $20 item.