Money Saving Tips for the Holidays

   * The holiday shopping season is a good time to stay organized.  Keep your receipts in a marked envelope so you can easily exchange or return any gifts.

   * Give gift certificates or IOU’s sharing your time and talents.

   * Involving children in holiday shopping can be a wonderful way to help them learn basic life skills such as planning, decision-making, and caring about others.  Ask your children for suggestions when planning events and involve them in some of your holiday purchases.

   * Do holiday bills make money tight?  A “payday loan” may tempt you, but beware!  Payday loans are offered from finance companies which

accept a postdated personal check and give you cash on the spot.  For example, you might write a check for $220 dated on your next payday, two weeks away.  The finance check accepts your check and gives you $200 in cash, keeping $20 as their fee.  The catch?  Payday loans are costly; you may pay the equivalent of 200% interest or more.

   * Send greeting cards only to those you will not see during the holidays.

   * Before you buy, ask the retailer if the item you want is going on sale soon.

   * Make your own table and door decorations.  Plan to trade decorations with a friend next year.  You will both have something new at a low cost.

   * To make the most of your holiday food dollars, select and prepare foods that are healthier. When you choose pumpkin over French silk pie, or serve water and juice along with (or instead of) soda and wine, your holiday food spending also will add to your well-being.

   * Create a holiday “dress up” box or old suitcase for children filled with old hats, clothing and jewelry.

   * Planning for holiday spending can help protect your pocketbook from a January freeze.  Decide how much you will spend on gifts and other holiday expenses before you start shopping, and stick to your plan.  When you have reached your spending limit, stop buying.  Remember to plan for special food needs, workplace or school events, decorations, and other holiday costs.  Not having large after-holiday credit card bills is a gift to you!

   * Instead of exchanging gifts at the office, suggest bringing canned goods for the local food pantry or donate to a local charity.

   * Give a “Give a letter gift” of your feelings and memories to a parent, child or friend; make a memory collection of family pictures.

   * The sale sounds great – “No payments or interest for six months!”  But be sure you know the details before you sign.  Those offers usually mean you will not owe interest if you pay in full before six months are up.  If you do not, you will be charged interest (often a high rate) for that six-month period, as well as the months ahead until the loan is paid.  If you buy on these terms, be sure you are prepared to pay in full with the interest-free term is up to avoid high interest charges.

   * Limit your holiday shopping to one credit card.  This will make bill paying easier and provide a clear picture of your spending.

   * Buy a gift for the home instead of buying something for everyone in the house.

   * Keep tract of all your holiday spending this year.  Divide the number by 12, and plan to save that amount each month so you will have the cash to spend next year.

Source:  Compiled by Kathy Sweedler, Consumer and Family Economics Educator, Champaign Extension Center, University of Illinois Extension.