holiday finances

Holiday Finances

 “According to a survey by Consumer Reports, shoppers planned on spending about $699 over the holidays last year, but in a follow-up survey, admitted to actually spending closer to an average of $811, 16% more than planned” 11/2/10

Creating a budget, and being disciplined enough to follow it, is one of the best ways to avoid overspending during the holidays

Small purchases start to add up, especially over the holidays.

Gifts

Decorations

Travel

Charitable Donations

Tips For Smart Shopping

Shop around

Look for price matching policies

Go online

Carefully consider bargain offers that are based on purchases of additional merchandise

Tips for Smart Shopping

Clip coupons

Ask about sales adjustments

Consider layaway

Keep an eye on your wallet

Tips for Smart Shopping

Use credit and debit cards with care

Ask about refund and return policies

Keep good records

Ship early

Online Shopping Safety Tips

Protect your computer

Shop on trustworthy websites

Protect your personal information

Beware of deals that sound to good to be true

Online Shopping Safety Tips

Beware of phishing

Confirm your online purchase is secure

https:// and “lock” symbol

Pay with a credit card

Keep documentation of your order

Know your rights

Online Holiday Scams

Quizzes, polls and contests

Auctions and deals to good to be true

Phony charities

Malware-ridden holiday cards and programs

Vacation homes not really for rent

Mistakes to Avoid

Don’t underestimate what you spend

A holiday budget helps give perspective on what you think you spend versus what you actually do spend

Guilt

Guilt seems to be the biggest source of overspending

Homemade gift guilt

Equalizing to excess

Surprise gift guilt

Procrastination

Putting off holiday shopping may cost you

Last minute shopping frenzy

FedEx folly

Holiday Spirit Overdrive

A financial crime of passion. An insane impulse overcomes you….holiday joy?...the spirit of Santa?...

Debt of 1000 gifts

Parental panic

Manic Perfectionism

Miscalculations

Miscalculations of volume, time, or value

Shopping by the truckload

The 12 days of shopping

Art-Fair amnesia

Personal Safety

Avoid carrying large amounts of cash. Limit the number of credit cards that you carry.

Be aware of strangers “accidentally” bumping into you. Pick-pockets use this as a diversion.

Avoid carrying large packages that block your vision and make you a target for thieves.

Personal Safety

Avoid shopping until you are exhausted. You are more alert when you are less tired.

When hurried or in a crowded shop, make sure you get all forms of identification and credit cards returned to you before you leave.

If you see a van parked next to your car, you can choose to enter your car through the passenger side.

Holiday Spending Tool

AFSAEF (American Financial Services Association Education Foundation) has an interactive online calculator

www.afsaef.org/HolidaySpending.cfm

Sample Spending Plan