This year, give yourself a holiday present that saves you
money. Treat
yourself to a bill-free new year and get ready for the 1998
holiday season
while you’re at it, said a University of Georgia
financial specialist.
“If you’ve already bought presents and done all of your
holiday spending
for this year, it’s not too late to repair a blown budget,” said
Esther
Maddux, an extension
financial
specialist with the UGA College
of Family and Consumer Sciences. “Make your plans now to
quickly repay
this year’s holiday debt and to prepare a spending plan for next
year.”
Holiday costs include more than just presents, though. You
can sink
a lot of money into gift wrapping, postage, parties, eating out,
decorating,
entertaining, holiday clothing, travel expenses, film and photo
processing,
donations, childcare costs and even bargain items at after-
holiday sales.
“Many people don’t think of these expenses as holiday
expenses, but
they really add up,” Maddux said.
Paying with a credit card seems like an easy solution to
holiday spending,
but Maddux said that quick, painless signature on a credit slip
can painfully
drag out holiday debt repayment for months.
“If you do choose to use credit cards, you still need to
budget and
stay within your budget,” she said. “And have a plan to repay
the credit
card issuer within three months.”
How much should you spend on the holidays? Maddux recommends
spending
no more than 1.5 percent of your gross household income.
At the beginning of 1998, Maddux recommends figuring that
amount and
setting it aside through the year for your next season’s holiday
spending.
Many banks offer “Christmas Club” accounts and your employer may
automatically
deduct a set amount from your paycheck for direct depositÿ
into that
account.
“If the money doesn’t go into your regular spending account,
it’s much
easier to save it,” Maddux said.
When next year’s holiday season rolls around, you’ll have
cash jingling
in your pocket to get you in the mood for the season.
Just because you have the money doesn’t mean you have to
spend it on
gifts. “Think about the cost of the gift and the value it will
have three
months later,” Maddux said.
Will a $100 trendy outfit be as valuable as a special trip
with friends
or family? Do you remember what gifts you received last year?
Can you remember
who you spent time with?
Time, though free, can be the most precious gift to give many
relatives
and friends.
