| With the current recession, consumers are | | | | off-limits except for holiday expenses like plane |
| thinking about ways to cut costs, and save | | | | tickets, gifts or decorations. The sooner you |
| money while still maintaining some sense of | | | | start saving, the smaller the monthly amounts |
| normality. This difficulty becomes most apparent | | | | you will need to set aside. |
| during the holiday season, when generous spirits | | | | - Start buying now- Items your family members |
| and a desire to buy the best gifts conflict with | | | | want may be available at a lower priceearlier in |
| the realities of a diminished budget. According to | | | | the year. End of season clearance sales are |
| a recent survey from PriceGrabber.com, 75% of | | | | excellent opportunities to purchase non-perishable |
| shoppers are more concerned about holiday gift | | | | items, like clothes and appliances. Items are |
| giving this year than they were in previous | | | | more likely to be in stock and with greater |
| years. According to the same survey, only 41% | | | | options than later in the winter. |
| of respondents said they plan to start saving for | | | | - Avoid plastic- When shopping for gifts, withdraw |
| the holidays earlier than last year and 36% | | | | cash from your savings account and pay with it. |
| admitted that they don’t save up for the | | | | Using credit cards makes the act of spending |
| holidays at all. | | | | money less immediate, which makes it easier to |
| Retailers are also worried about the upcoming | | | | overspend. Using cash creates a more direct |
| holiday season. Last year’s sales were down | | | | sense of spending money and makes the amount |
| by more than 2%, according to the International | | | | you are spending more real. Plus, you are less |
| Council of Shopping Centers. A drop in | | | | likely to wrack up debt if you only spend the |
| November sales of 2.7% and an additional drop in | | | | money you have already deposited in your special |
| sales in December of 1.7% added up to the | | | | holiday savings account. |
| largest industry decline since 1970. With | | | | - Get creative: Instead of buying new decorations, |
| consumers worried about rising gas prices, falling | | | | make them. Instead of buying new gifts, hand |
| housing values and disappearing jobs, this year | | | | down family heirlooms or make old objects new; |
| might just decline even more sharply this year. | | | | frame photos, refinish old furniture, or stencil |
| So the question remains: how can concerned | | | | designs on an old mirror. The memories you |
| consumers ensure the holidays don’t wreck | | | | make of stringing popcorn and cranberries for the |
| their newly created sense of frugality or newly | | | | tree or frosting cookies to give to your neighbors |
| tightened budgets. Experts recommend you | | | | will quickly replace any stress from cutting back. |
| move to an “all cash” holiday. | | | | - Talk to family and friends: Instead of buying |
| - Create a budget: How much money will you | | | | gifts for each co-worker, plan a Secret Santa or |
| spend on gifts? Decorations? Special events? | | | | White Elephant gift exchange. Lower |
| Build a budget based on last year’s expenses, | | | | children’s holiday expectations and explain |
| credit card receipts and big purchases. Prioritize | | | | how the number of gifts might be lower, but that |
| expenses, figure out what you can afford to part | | | | doesn’t affect the spirit of joy and love for |
| with and where you can cut down on costs. | | | | the holiday. Consider buying one large gift that |
| Then, stick to your new holiday budget. | | | | the entire family can enjoy, like a new TV, |
| - Start saving now- Based on your newly created | | | | instead of individual gifts for each and from each |
| budget, start saving. Set up an automatic | | | | family member. |
| deposit of a fixed amount from your paychecks | | | | Want more credit tips? |
| into a savings account, keeping that money | | | | |