Kylie Ludwig
Financial Management
and Entrepreneurship
he holidays are just around the corner and are supposed to be a time of joy, relaxing and fun with family and friends. What looms in the back is the financial strain that comes with big meals, traveling and presents under the tree. Let’s talk about how we can stay out of the red this year. Creating and maintaining a plan with your money for the holiday season will help the stress melt away and the joy take over. The following tips and tools can help you enjoy the season without letting holiday spending get the better of you while avoiding major holiday financial blowouts.
Establish an overall spending limit but consider trade-offs – Once you have figured out your top dollar amount, continue to check back on it through the season. You may have to give and take when it comes to your decisions. Do what is best for your family.
Use just one or two credit cards, rather than several – According to the National Foundation of Consumer Credit, the typical American walks around with nine credit cards. . . If you dial that back to one or two that you will charge on, you will likely charge less.
Know which credit cards you should use and use cautiously – all credit cards are not equal. Pay attention to the percentage rate. If you carry a balance on your card you will be paying a hefty bill on interest throughout the year.
Keep track of your charges – a great tip is to keep an index card with your credit cards and write what you charge down each time you make a purchase with it. It will help you remember you have a budget you are working with and keep over spending at bay.
Save in advance – it sounds simple and it is. . . You must discipline yourself to save a few dollars from each paycheck during the year. If that won’t work for you try an interest paying holiday savings club at your bank.
Moonlight – earn some extra cash and take on a second job for a couple months, or work a little extra throughout the year and save that money for the holidays.
Draw names – our family does this on both sides. Everyone still gets a gift and your pocket book gets a break.
Consider on-line or catalog shopping – many find that catalog shopping helps sticking to a budget, no instore items lure you in. Just remember to include shipping charges.
Allow time for planning and comparison shopping – looking for deals and scoring the best price will make anyone feel like a champ!
Borrow wisely – remember to budget for the credit cards. Starting the New Year and holiday debt isn’t a fun way to kick off the year.
A couple of facts about holiday shopping are that 66 percent of all consumers go over their budget during the holidays, by an average of $116.00. An outstanding number of Americans, 63 percent, will not set or have a budget for their holiday shopping. Let’s not be part of that statistic this year. Make your list, set your budget, and enjoy the Christmas Cheer and not the fear of the holidays.
financial management & entrepreneurship
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