Charge it! Cheerful Giving or Buyer's Remorse?

by Sherry Holetzky | More from this Blogger

29 Nov 2006 07:32 AM

Do we really want to spend the next entire year paying off Christmas? It is way too easy to spend too much on Christmas gifts for family and friends. We all delight in delighting others, and sometimes we get carried away. When we can whip out the plastic and charge it, we tend to go overboard, because we know we can pay over time.

I've even seen people put everything on credit cards at the big bargain sales, people who know they won't pay off the balance immediately. Don't they realize that they haven't saved any money when they are going to give every bit of it, if not more, to the credit card company?

Personally, I don't think it's worth it. It's definitely not good for the bottom line, and we don't do our kids any favors when we spoil them with every latest, greatest thing (that all too often ends up kicked aside on the floor).

I've gone a little crazy with the holiday shopping in the past; I hate to admit it. I'm determined not to do it any more.

Here are some tips:

• Make a holiday budget and stick to it (within reason... a few dollars either way is okay, but don't bend too much). We decide a certain amount for each of our kids, for extended family members, for friends, and for teachers, grab bags, etc.
• Do not put any purchases on credit cards that you cannot pay off right away. If you can't afford it, don't buy it. If you're waiting for a check and know you'll pay it off right away, that's different. Just don't forget and get stuck with those finance charges.
• Have the kids make a list and make it clear that you will choose from that list, not buy every item on it. This way, they're more likely to tell you what they really want, and not just write down everything they see on TV.
• Buy as much ahead of time as possible instead of trying to come up with a large sum of money all at once (I should have started in June!), or start a Christmas Club for next year. I'm really going to do it this time...

Related: Tips for the Best Holiday Shopping Deals

Learn more about Sherry Holetzky

Sherry Holetzky is a work at home mom and freelance writer. Married to her best friend, Sherry and her husband are raising their family in a quiet rural setting in the beautiful Ozark Mountains.

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Nola Redd (7081) 29 Nov 2006 07:21 PM

I so agree! The first year I had a credit card - in college - I went wild for Christmas and was still paying things off in July. Never again, I vowed! I still charge things on occasion, but I've tried to space out purchases over the year and you're right, paying months of interest negates the savings.

Sherry Holetzky (11404) 30 Nov 2006 06:36 AM

Hi Nola; thanks for sharing. I think it's really easy to get caught in this trap.

Teresa McEntire (2984) 01 Dec 2006 11:30 AM

I have a gift budget every month that accumulates. So when birthdays, Mother's Day, Christmas, etc. come around there is already money set aside for the event. I also stick to a spending limit. It helps to start buying things early in the year. As long as you remember the things you bought.

Sherry Holetzky (11404) 02 Dec 2006 07:29 AM

Great tips, Teresa. You sound very organized. I'm impressed.

Yep, you definitely have to keep track of what you bought early....

Thanks for sharing.