Business and Finance

Holiday Fun Can Be Affordable
Written by Heather J. Miller Tokarz

Traditionally, the holiday season is a time of indulgences. Any combination of gifts, travel and entertaining can result in big end-of-year expenditures. But this year—in light of declining investment portfolios, sinking house values and a shaky job market—many American consumers will be looking for ways to toast the season without breaking the bank. If you, too, want to avoid over-spending, here are some tips to celebrate more frugally:

Set proper expectations
It helps to make sure everybody in your family is onboard with the cost-conscious approach. If you are married, have a frank discussion with your spouse about spending limits.

If you have children, make sure they understand that your plans for the holidays will focus on fun that can be had without spending a lot of money. If your children are old enough, you may even use this as an opportunity to explain the fundamentals of household economics and involve them in setting holiday spending priorities for the family.

Plan ahead
Take time to write down a list of possible gifts you hope to purchase for family and friends. Knowing what you want ahead of time may help you avoid making poor decisions and impulse purchases once you hit the stores.

Invest time to save money
The best deals can be found by shopping around. Check out stores in your area and investigate what’s available online. The emergence of online shopping has made it much easier to do your homework before you buy. Web retailers will help you determine best prices for the products you are looking to purchase.

Track your spending
One of the best ways to keep spending under control is to set a limit. Within your family, this can be on a per-person basis, or you can set a budget that dictates your maximum holiday spending. Once this number is chosen, see if you can come in under budget. Track all of your purchases and be certain to hold onto receipts. You might also request gift receipts where available and tuck them inside cards or gift boxes.

Be smart about gift cards
Gift cards have become increasingly popular and more widely available. Make sure you understand the terms of a gift card (such as expiration dates) before making a purchase.

Get a jump on the season
Given the forecast for below-average consumer spending, many retailers are cautious to avoid stockpiling large inventories this holiday season. If you shop early, you will be more likely to find what you’re looking for at a reasonable price. Conversely, last minute shopping could result in spending more than you planned, particularly if you are determined to buy specific items.

And finally…
These tips are about gift buying. But rather than making gifts and packages the center of your holiday celebration, try putting more emphasis on spending quality time with family and friends. Encourage games and conversation; you may be surprised to find how little you miss the excesses of years past.

Financial planning services and investments offered through Ameriprise Financial Services, Inc., Member FINRA & SIPC.

©2009 Ameriprise Financial, Inc. All rights reserved.
File # 91804
(11/09)

As an experienced experienced advisor, Heather knows that everyone’s financial picture is different, and that priorities change depending on their time horizon, how they accumulated their wealth, and their long- and short-term goals. So Heather helps each of her clients develop a strategy tailored to their unique needs and goals. She is licensed and registered to conduct business in VA. Based on licenses and registrations she holds, she may also conduct certain business in MD, NC. She has a BA in Russian Studies from Mercyhurst College and is an active member of the Ocean Front Jaycees.