Keep holiday spending in check

As people begin to plan the holiday season, they often put a lot of pressure on themselves to make sure that everything is “perfect,” said Sissy Osteen, Oklahoma State University Cooperative Extension Service resource management specialist.

“Consumers may find themselves overspending because they want to give just the right gift instead of what they can afford to purchase,” Osteen said. “Smart consumers will develop a holiday budget that fits the family’s overall spending plan. It’s vital to know how much money is available for gifts and other holiday expenses. Don’t get caught handing over your credit cards simply because you want to buy the ‘perfect’ gift.”

There are some consumers who may still be trying to pay off the last holiday season while struggling to find a way to pay for this one. Be sure to keep in mind the interest rates on your credit cards when determining how long it will take to pay off any charges you make this holiday season.

Something else that can lead to overspending is the consumer’s emotions. For example, sometimes a person may buy gifts out of feelings of guilt.

“Consumers have been known to purchase expensive gifts because they’re feeling guilty for not visiting a family member for a long time,” she said. “Parents who are divorced may overindulge their children to compensate for the divorce itself. Other emotions also can be involved, such as overspending in an attempt to win the heart of someone. It’s important to keep the ‘emotional’ side of money out of the picture, as much as possible. Keeping your family financially sound is one of the best gifts you can give.”

Staying within the holiday budget also can help children develop a sense of good money management. It is important for children to learn the holidays are filled with wonderful memories – not expensive gifts people cannot afford to give.

Drawing names is one way to cut expenses, especially if you have a large family. To help cut down on the cost of the holiday meal, enlist family members to bring covered dishes. It also helps to establish a gift limit of $10 or $20, or whatever amount fits into the family’s budget.

“If you find yourself in the mall with an expensive gift in your hand, ask yourself why you are considering purchasing the item,” Osteen said. “Does it make you feel good? Are you letting the holiday spirit or the holiday crowds tempt you to buy things you normally wouldn’t? Is it something you can afford? Considering your emotions may help you determine whether or not the gift should be purchased.”

Every time you purchase a gift with a credit card, enter the purchase into your check register as a payment. This will give you a good idea of how much money you would be spending if you paid it off at the end of the month.

To get a head start on next year’s holiday shopping budget, determine the amount that you spent on gifts this year. If your intention is to spend the same amount next year, then divide the amount by 12 and begin setting that amount aside every month. Collect loose change and add it to your holiday savings on a monthly basis. It may not add up to much extra cash, but it can help put a dent in the holiday budget next year.

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Oklahoma State University, U.S. Department of Agriculture, State and Local Governments Cooperating: The Oklahoma Cooperative Extension Service offers its programs to all eligible persons regardless of race, color, national origin, religion, gender, age, disability, or status as a veteran, and is an equal opportunity employer.

Trisha Gedon
Communications Specialist
Agricultural Communications Services
136 Agriculture North
Oklahoma State University
Stillwater, OK  74078
405-744-3625 (phone)
405-744-5739 (fax)
trisha.gedon@okstate.edu