Perhaps it’s already dawned on you that the holidays are just around the corner. And that means shopping for gifts for the people that matter most to you. Unfortunately, sometimes the holidays are overshadowed by overspending and the subsequent emotional troubles that stem from not keeping your spending under control. In your efforts to shop within your means and stay on track to ultimately become debt-free, here are some tips to help you shop wisely and save money so you can actually relax and enjoy the holiday season.

‘Tis the Season to be Jolly

Did you spend Thanksgiving Day looking through the many post-Thanksgiving sale ads in preparation for some holiday shopping? If so, you’re not alone. While eating turkey and watching football are an important part of Thanksgiving Day, many of us also spend time making our holiday shopping lists in preparation for one of the year’s biggest shopping days.

Retailers know the day after Thanksgiving as Black Friday—and not because of over-congested shopping malls and late hours. The day after Thanksgiving is the beginning of the nation’s retailers’ highest-revenue season. Almost 25% of the year’s retail sales take place in November and December. It’s how retailers end the year in the black, instead of in the red—hence the name Black Friday.

Black Friday can turn truly dismal for consumers, however, if they don’t keep their budgets in mind. With all the jollity of the season, it’s easy to get carried away by the feelings of goodwill and go a little overboard. Many surveys show that the average consumer will spend between $700 and $800 during the holidays, while some surveys show spending at more than $1,000. That’s just the average, remember, some people will spend much higher amounts.

The National Retail Federation has found the typical breakdown to be:

• Gifts for family: $407
• Gifts for friends: $71
• Gifts for coworkers: $22
• Other gifts (teachers, neighbors, etc): $41

And that’s just the gifts. Another significant portion of that $700 to $800 goes for things like cards, stamps, wrapping paper, party food, and so forth. Don’t forget to add these items to your holiday budget or you’ll find yourself in trouble.

The typical breakdown is:

• Party food and candies: $84
• Holiday decorations: $36
• Greeting cards and postage: $25
• Poinsettias and other holiday flowers: $16

We also find the sales too good to pass up and buy a little something for ourselves. Surveys shows—more than 50% of us spend at least $90 on ourselves while we’re doing all that shopping for others.
No one wants to take away from the spirit of the season and all the opportunities it brings for sharing and showing those you love a little extra special attention. There are many great ideas for economical gifts and ways to avoid financial groans over the holidays. We’ve collected some of our favorites and placed them throughout this newsletter to help you keep the season enjoyable by staying within the realms of reality for your finances and avoiding unnecessary financial distress when the season is over.

Most of all, all of us at Family Financial Education Foundation want all of you to have a wonderful holiday season with the prospects of a great New Year.

Is a Sale Price Your Best Deal?

Every year we are bombarded with ads for pre-holiday sales, preferred customer specials, early bird sales, midnight madness events, coupon savings days, and don’t forget post-holiday sales. Sure you want a good deal, but just how do you decide if the deal is real? The Federal Trade Commission (FTC) offers some tips to help you get the most for your money.

• Shop around. A “sale” price isn’t always the “best” price. Some merchants may offer the sale price on the item you want for a limited time; other merchants may discount the item you want everyday. Also, when you’re comparison shopping, make sure you have the item’s manufacturer, model number, stock number, or other identifying information.
• Read sale ads carefully. Some may say “quantities limited,” “no rain checks,” or “not available at all stores.” Before you step out the door, call ahead to make sure the merchant has the item you want in stock. If you’re shopping for a popular or hard-to-find item, ask the merchant if he’d be willing to hold the item until you can get to the store.
• Take time and travel costs into consideration. If an item is on sale, but it’s all the way across town, how much are you really saving once you factor in your time and the costs of transportation and parking?
• Look for price-matching policies. Some merchants will match, or even beat, their competitors’ prices. Read the merchant’s pricing policy carefully. It may not apply to all items.
• Go online. Check out Internet sites that compare prices for items offered online. Some sites may also compare prices offered at stores in your area. If you decide to buy online, keep shipping costs and delivery time in mind.
• Carefully consider bargain offers that are based on purchases of additional merchandise. For example, “buy one, get one free” or “free gift with purchase.” If you don’t really want or need the item, it’s not a deal.
• Ask about sale adjustments. If you buy an item at regular price and it goes on sale the next week, can you get a credit or refund for the discounted amount? What documentation will you need?
• Ask about refund and return policies for sale items. Merchants may have different refund and return policies for sale items, especially clearance merchandise.

Don’t Let the Grinch Find You: Holiday Scams

More than 140 billion American dollars are given annually to charities, and more than 40% of them are given during the holiday season. Fundraisers are particularly aggressive about appealing to those who are wrapped up in the season’s spirit of giving. During the holiday season, most Americans are likely to receive more than five charitable solicitations a week.

Online giving can be a quick and convenient way to make year-end donations to your favorite charities. However, as online giving grows in popularity, so do online donation scams. Donation scams not only steal your money, but they also stop it from reaching those in need of your financial support.

These scams typically show up as spam e-mail messages and postings in online forums that ask for donations in the name of well-known legitimate charities. A fast-growing type of fraud called “phishing” often arrives as an e-mail with links to apparently charitable websites, but these websites are actually clever fakes that are designed purely to take your money.

Things to watch out for:

1. Beware of charities with names similar to reputable ones. Navigate to the charity’s website on your own if you receive an e-mail request from a charity that you’d like to support, instead of clicking on the links in the e-mail to see if the website is legitimate or not.

2. If you receive an unsolicited e-mail from a charitable organization asking for money, don’t be quick to click links or enter any personal information.

3. Instead of responding to solicitations, contact well-known and established charity agencies yourself, and stick with ones that you or people you trust have used before.

4. Be wary of e-mails from strangers or unknown sources, especially those claiming to have attached photos, which can come infected with computer viruses.

5. Improve your computer’s security and use current technology to help block spam.

Plan Now for Next Year

Once the holidays are over, it can seem a little irreverent to already be thinking of next year’s holidays. But if you do, the money you will save by being prepared when next year rolls around will give you such a warm feeling that you’ll get over the irreverence very quickly.

The after-holiday sales are even better than the after-Thanksgiving sales and with a little careful budget planning, you can store up a few necessities now. The most obvious items to look for are wrapping paper and greeting cards. Boxed fancy soaps and candles in holiday shapes are usually sold off quite cheap, and household items like tablecloths, trays, candy dishes, etc., can be a real steal. Buy them up, store them away, and take them out next year. By having them ready, you can give them early enough next year that the lucky recipient can use them all through the season.