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December 3, 1998

Holiday Budgeting

Save on Gifts & Travel

1) Don't try to be Martha Stewart. One look at any magazine counter this time of year sends most of us into a tizzy. Between making all of our gifts, decorating the perfect nine-foot tree, and cooking the fourteen-course holiday meal, it's enough to make you want to stay in bed until January. Don't get sucked into the "it has to be perfect" mind set. Remember that this time of year is about fun and love and thankfulness... and not about how much money you spend or how creamy the fondue turns out.

2) Reel in your kids. If you're freaking out, chances are so are the munchkins. Remind them of the real meaning of the holidays.

3) Make savvy travel plans. Preview Travel says "'tis the season to save." Take them up on their advice and look for the best deals for going home for the holidays. They especially recommend travelling on non-hot days like Christmas Eve and New Years Day. Big city hotels also have terrific rooms at bargain rates because the business travelers they cater to often take December off.

4) Combine gift-giving and charity giving. After you make your gift list, are you faced with some people who truly have everything? Instead of giving them one more thing that they don't need, why not give something in their name to someone less fortunate? Give to your friend's favorite charity, whether it's a school or the symphony or the SPCA. Or, (plug alert!) check out the Fool Charity Fund.

5) Make stuff... sometimes. Before you get sucked into the Martha Stewart Syndrome (see tip #1), make sure you really think about your gift-making strategy. While making gifts is frequently the nicest thing you can do, it's not always the least expensive, despite our best efforts. Do you really know what you're doing? Or are you going to screw it up and have to make it a couple of times? Also, will the money you save make up for the time that it will take you to do it?

6) Winnow out your friends. This may sound harsh, but are you still sending gifts to people that you're really not that close to just because it's expected of you? Or do you have a huge extended family that expects everyone to pony up a present? For the big family, think about exchanging names instead. Get a couple of people on your side (a sibling or cousin who might be in similar financial straits) and then present it to the ones "in charge" (Grandma?). For the friends, consider moving them to the "card list" or at least the "cookie and card" list.

7) Give your time. Sometimes the last thing a young family needs is one more toy to pick up. Why not offer to play babysitter for them a few times instead? Or instead of giving your grandad another sweater, take him to a football game. The time you spend together will often be remembered long after the sweater or toy is forgotten.

8) Make your kids help. If you have children and plan on making gifts or food, get them to help you. Not only will it be a learning experience for them and a bonding experience for you both, but if you screw it up you can blame it on your kids. ("Oh, that's so sweet that little Matthew helped! Look at the purple tree he made" instead of, "What? You ran out of green icing?")

9) Use your credit cards wisely. Your credit card companies may try and "help" you with an offer to forgo your January payment to them. Don't do it! Plan now for how much you're going to charge and how you're going to pay it off. The deferral plans offered by some banks usually come with a fee, and you'll still be racking up interest charges.

10) Know when your time is more important than money. If you have a choice of wrapping all of your presents yourself or spending more time with your kids, choose the latter. Frequently, non-profit organizations set up gift wrapping booths in the mall. Take advantage of services like this and use the extra time to be with your family. Or think about doing a lot of your shopping through catalogs and with online stores. You can still go shopping with your family and never leave your living room.

- Trudy Bowen

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