Consumers plan to spend more during the coming holidays than they did during 2008's holiday season, which saw the depths of the recession. Nevertheless, consumer spending is still expected to be lower than it was in previous years, the Credit Union National Association (CUNA) said.
The annual holiday spending survey conducted by the Consumer Federation of America (CFA) and CUNA found that this year 43% of consumers intend to cut back on their holiday spending. Both groups offer ideas on ways to keep holiday spending under control and avoid sinking into debt – pretty useful advice year-round and certainly with Hanukkah/Christmas gift shopping sprees just around the corner.
"With just a little planning, consumers can substantially reduce their holiday spending without sacrificing holiday quality," Stephen Brobeck, executive director of the Consumer Federation of America, said.
Here are some useful shopping tips:
Set a budget and make a list: Decide in advance how much you can afford to spend and stay within that budget. Staying within budget limitations will be easier if you make a list of all the gifts and other holiday items you plan to buy. A detailed list will enable you to factor in extra holiday expenses for foods, party clothes, holiday decor and postage, which are usually easily overlooked.
Compare prices: Comparing prices at different stores can help you save about 10% – sometimes more – on most items. Call different stores or compare prices online. If you shop online, be sure to use a secure site (look for the "https" in the website address and the locked padlock icon on the toolbar).
Pay debts quickly: If you pay for your holiday shopping in cash, you're less likely to overdo it. If you find that you must use your credit card for holiday purchases, use a lower-interest card. Remember – credit card debt is relatively expensive.
Plan ahead: Try planning ahead for the next holiday season by opening a savings account you'll be able to use for future holiday expenses. Such accounts provide a practical way to save small amounts of money every month and over time.
Shop ahead for next year's presents: Once the holiday season is over, you can find some great bargains. Purchase gifts ahead of time and simply tuck them away until next season.
Be smart about gift cards: If you don't use a gift card promptly, it can lose its value. A gift card can expire, it may carry monthly maintenance fees which erode its value to zero, and the store that issued it can stop honoring it, or worse – go under. If you give or receive a gift card, read the fine print.
Pay attention to stores' return policies: Return policies vary between businesses. When making a purchase, make sure to pay attention to the various return policies; keep receipts and note time limits, restocking fees, and other factors that may affect your recipient.
Find low or no-cost ways to celebrate: Making a few small changes can ease the strain on your pocketbook and spending budget. You can choose to give homemade items, make your own gift wrapping, organize a potluck rather than trying to make (and pay for) an entire holiday meal, or try to limit the number of people for whom you buy gifts.
Season’s greetings to you all!
