Savvy Shopping for Holiday’s and Celebrations

By: Jodi Cross

The average family spends over $800 on holiday purchases each year. Last year that added up to $579 billion in spending according to the National Retail Federation. We work hard all year but should we be spending such a big chunk of our earnings on holiday shopping? The majority of American’s use savings or earnings to pay for holiday shopping but nearly one-quarter of us use credit cards or go into debt.

With a little planning and organization you can take control of your spending, avoid going into debt and remove some of the stress from the holiday season. Start with a list include; family, friends, co-workers and hostess gifts.  Create a budget to keep expenses under control. Many families draw names, purchase only gifts for the children or set an agreed upon spending limit for each person.  In my family, we actually share specific gift ideas which helps to avoid returns and re-gifting.  

Here are some tips for “savvy” shopping this holiday season.

• Shop all year. When you see something you like, buy in multiples. Chances are if you like it your friends will too. In some      cases, buying in multiples can result in an additional bulk discount.  One of the benefits of buying all year is      that you avoid huge credit card bills in January.  My credit cards barely register a blip in      December or January.
• Set-up a gift closet. The key to buying all year is organization. I keep a gift closet in the guest bedroom, but any cupboard or shelve      space will do.  Twice a year, take      everything out, log all the items including quantities on a clipboard then      reassemble all the items back into the closet. By having a system, you can      easily find items and you won’t forget what you purchased. In addition, keep your annual shopping list of family and friends along with the items      you gave them for up to three years.  Nothing is more embarrassing than giving      someone the same gift two years in a row.
• Restock in January. It may be little late this year to establish a gift closet but you can shop in January and get some awesome deals. Don’t buy junk just because it is on sale. Be discerning and only buy      something you would appreciate. Items like wrapping paper, bows, holiday decorations and cards are half price in January.
• Shop the sales. Everyone loves Black Friday. Personally you won’t catch me out at 4 AM waiting for the doors to open at a big box store. For those who like the adrenaline rush, you can absolutely get some      good values. Some of the best discounts are on electronics, video games,  toys and clothing. Go armed with cost comparison research and a “hit list”  in order to avoid impulse buying. 
• Surf on-line. Cyber Monday rivals Black Friday, plus you beat the lines and get to sleep in. The deals are just as good and retailers often offer free shipping. Keep an eye out for discount codes that yield an      additional percentage off at check out. If you are into experiences or travel, sign-up for Groupon, Living Social and Travel Zoo. Last year, I bought my husband a racing school gift certificate for half the retail      price.
• Create a theme. This summer we vacationed in Praque and Budapest. The Czech Republic is known for beautiful crystal. I bought      multiple items in both countries that will make perfect European themed holiday gifts for      family and friends. One year my theme was Nostalgic Christmas. I bundled copies of the movie “It’s A Wonderful Life” along with      boxes of popcorn and candy and gave those as holiday presents.
• Craft personal gifts. Handmade presents can save you money if      you have the time. Thrift stores are a great source for supplies such as;      jars, baskets and antique jewelry. Baked items in nicely packaged tins      along with a recipe card make for sweet treats.  Create your items based on what supplies      you have on hand, your skill level and the time you can dedicate to the project.
• Celebrate the children. The holidays are meant for kids. When buying children’s gifts make sure to get something age appropriate. Ask      for specific ideas to avoid buying the same toys they already have and attach a gift receipt for easy returns.

Keep in mind, the holidays are all about family and friends and enjoying the spirit of the season not about how much you spend on the gifts. Happy Holidays, wishing you good tidings and cheer!

Resources: National Retail Federation, Discover Financial Services, BIGinsight.com