Tips For How to Reduce Holiday Spending
With the holiday season quickly approaching, it may be time to start thinking about your spending plans in this sputtering economy. Times are tough for most Americans: unemployment is rising, the stock market has suffered great losses and home values have decreased (obvious, I know).
I suspect this economic downturn must relate to anticipated holiday spending, so I went out to find some statistics on what the outlook was for this year. According to an annual survey by the National Retail Federation (Holiday Consumer Intentions and Actions Survey), U.S. consumers plan to spend more on average this year than last at $832.36; this is up 1.9% over last year’s average ($816.69), but it represents the lowest increase since the survey began (2002). So it appears that there will be some reservations about holiday spending as Americans look for ways to save money.
Here are a few ideas:
- Gift Exchange -There are many variations of the gift exchange, including Secret Santa and White Elephant. I can say that this is something we are doing on my wife’s side of the family this year instead of the traditional get-everyone-something arrangement. This is going to save us both time and money.
- Shop Online - Research the items you want to buy and compare prices to make sure you are getting the best deal. Also, look for specials and coupons. Some popular websites that may help:
http://www.dealcatcher.com/ - This site is a good source for printable coupons, links to deals and coupon codes.
http://www.mysimon.com/ - This is a comparison shopping site to research the best prices on almost anything.
- Be creative - at the expense of sounding cliché, sometimes the best things in life are free. A great gift doesn’t mean it has to be expensive, so use your imagination and give something that the recipient will really value. As a parent with a young child, I can say that I would appreciate a night of free babysitting more than just about anything right now. Here is a source for some other good cheap/free ideas:
http://familycrafts.about.com/cs/giftgiving/a/120400a.htm
Even if you have additional money to spend this year, it’s still a good idea to shop smart. You can always put some extra funds toward retirement. Please post a comment with your plans for this holiday season and include any ideas on other ways to save money. Happy Holidays!
Kevin Jaegers, Senior Investment Advisor
