{"id":120,"date":"2015-11-14T16:43:36","date_gmt":"2015-11-14T16:43:36","guid":{"rendered":"http:\/\/stories.kera.org\/holidays\/?p=120"},"modified":"2016-04-22T13:40:22","modified_gmt":"2016-04-22T13:40:22","slug":"here-are-6-ways-to-spend-smarter-during-the-holidays","status":"publish","type":"post","link":"https:\/\/stories.kera.org\/holidays\/2015\/11\/14\/here-are-6-ways-to-spend-smarter-during-the-holidays\/","title":{"rendered":"Here Are 6 Ways To Spend Smarter During The Holidays"},"content":{"rendered":"

The holidays can be a tempting time to just buy, buy, buy. Here are some tips to help you spend wisely.<\/em><\/p>\n

\n

1. Set spending limits.<\/strong><\/p>\n

Make a budget \u2013 and stick to it. \u201cList all of the gifts and decorations you plan to buy, the parties you will attend and the travel expenses you anticipate. Do not exceed your preset limits,\u201d the National Endowment for Financial Education says. \u201cDecide how much you can afford to spend and stay within that budget,\u201d the Consumer Federation of America and Credit Union National Association say<\/a>.\u00a0\u201cMake a price list of all gifts and other holiday items you plan to purchase.\u00a0Take the list with you shopping to avoid overspending and impulse buys.\u201d<\/p>\n

\"Employees

Employees Leslie Luna (left) and Kenya Phelps (right)
straighten the TV display at Walmart in Dallas. Photographed on Monday, November 16, 2015. Photo\/Lara Solt<\/p><\/div>\n

2. Save early and save often.<\/strong><\/p>\n

\u201cYou must discipline yourself to save a few dollars from each paycheck during the year,\u201d the American Financial Services Association Education Foundation\u00a0says<\/a>. \u201cIf you aren\u2019t disciplined enough to save regularly on your own, consider joining an interest-paying holiday savings club at your bank or credit union.\u201d<\/p>\n

3. Shop early and be careful when you spend<\/strong>.<\/strong><\/p>\n

\u201cAvoid shopping while rushed or under pressure, which can lead to overspending,\u201d the American Bankers Association<\/a> says.\u00a0\u201cMake sure to comparison shop online first, or download an app that lets you compare prices before you buy anything in a store.\u00a0Before you head to the cashier (or online checkout), make sure your purchase is within the budget you set.\u201d<\/p>\n

4. Don\u2019t buy gifts \u2013 make them.<\/strong><\/p>\n

Channel your inner Santa’s elf. \u201cMaking gifts is a good way to help stay within your budget. Consider baking, knitting, or building gifts for certain people on the list, like neighbors, co-workers, or your kid\u2019s teachers,\u201d Teachers Insurance and Annuity Association of America<\/a> says. \u201cChances are, gifts that are small, thoughtful, and homemade will have far more meaning to the people who receive them.\u201d<\/p>\n

\"Shelves

Shelves stocked with toys at Walmart in Dallas. Photo\/Lara Solt<\/p><\/div>\n

5. Start thinking about next year.<\/strong><\/p>\n

\u201cAfter Christmas is a good time to shop for next year’s presents. You can find some great bargains right after the holidays,\u201d the Consumer Federation of America and Credit Union National Association say<\/a>. \u201cAnother benefit to starting early: It gives you more time to find the \u2018right\u2019 gift and avoid impulsive decisions, which too often leave you less happy with your purchase.\u201d<\/p>\n

6. Set expectations with your family.<\/strong><\/p>\n

\u201cTalk to your kids about expectations for gifts and holiday activities. Be open with them if money is an issue,\u201d the American Psychological Association<\/a> says. \u201cDepending on a child’s age, parents can use this as an opportunity to teach their kids about the value of money and responsible spending. And be realistic.\u201d<\/p>\n

Sources: National Endowment for Financial Education; American Financial Services Association Education Foundation; Teachers Insurance and Annuity Association of America; Credit Union National Association; the Consumer Federation of America; American Psychological Association; American Bankers Association; Investopedia.com.<\/em><\/p>\n

\n

5 Tips For Staying On Top Of Your Credit Card Debt<\/h4>\n

Did you go overboard spending this holiday season? The Federal Reserve offers these five credit card tips<\/a>:<\/em><\/p>\n

1. Pay on time.<\/strong><\/p>\n

\u201cPaying your credit card account on time helps you avoid late fees as well as penalty<\/em> interest rates applied to your account, and helps you maintain a good credit record. A good credit record leads to a higher credit score, which helps you qualify for lower interest rates.\u201d<\/p>\n

2. Stay below your credit limit.<\/strong><\/p>\n

\u201cIf you go over your credit limit on your card, your card issuer could charge a fee and increase your interest rate to a higher penalty rate. To avoid this, keep a record of your spending or check your balance online.\u201d<\/p>\n

3. Avoid unnecessary fees.<\/strong><\/p>\n

\u201cCredit card companies not only charge late payment and over-the-limit fees, but also fees for cash advances, transferring balances, and having a payment returned. Some companies charge a fee when you pay your bill by phone. Pay attention to the transactions that trigger these fees.\u201d<\/p>\n

\"The

The Keurig coffee maker is on display at Walmart in Dallas. Photo\/Lara Solt<\/p><\/div>\n

4. Pay more than the minimum payment.<\/strong><\/p>\n

\u201cIf you can’t pay your balance in full each month, try to pay as much of the total as you can. Over time, you’ll pay less in interest charges.\u201d<\/p>\n

5. Watch for changes in the terms of your account.<\/strong><\/p>\n

\u201cCredit card companies can change the terms and conditions of your account. They will send you advance notices about changes in fees, interest rates, billing, and other features. By reading these \u2018change in terms\u2019 notices, you can decide whether you want to change the way you use the card.\u201d<\/p>\n

Source: Federal Reserve<\/em><\/p>\n

\n

How Much We Plan To Spend<\/h4>\n
\"Bob

Bob Roe looks for Christmas cards after selecting a Christmas tree and ornaments while shopping at Walmart in Dallas. Photo\/Lara Solt<\/p><\/div>\n

This year, Americans plan to spend an average of $812 on gifts \u2013 that\u2019s up from $781 last year, according to a Gallup Poll<\/a>. It\u2019s the highest estimate since 2007. One-third of U.S. adults plan to spend $1,000 or more and 8 percent say they won\u2019t be spending anything. Gallup says consumers are \u201ca bit less cautious\u201d than last year about their Christmas spending.<\/p>\n

\n
Resources<\/h5>\n