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10:20 a.m., Dec. 16, 2002-- “Every year during the holidays, I spend more money than I should.” Is this a familiar refrain around your house?
“I get many calls in January from people who are trying to pay off what they spent in November and December,” Maria Pippidis, Cooperative Extension educator for family and consumer sciences at the University of Delaware, said.
According to Pippidis, out-of-control, budget-busting spending during the winter holiday season is not uncommon. In a recent survey, consumers reported paying out an average of $474, and 20 percent of families headed by people 30 to 44 years old spent more than $1,000 at this time of year.
Pippidis admits that it is easy to overspend during the holidays. In addition to the cost of purchasing gifts, extra expenses during the holidays often include long distance telephone calls, extra travel, buying and mailing holiday greeting cards, and the cost of preparing special meals or hosting parties.
How can you get in charge of spending before the bills add up? “Santa had the right idea: Make a list and check it twice,” Pippidis said. She advises listing all of the people you need to buy gifts for and other items you plan to purchase. Then write up a budget, including:
- The amount of money you would like to spend for each person as well as some gift ideas within that range.
- List expected expenditures on other holiday items.
- Double-check your list to be sure you have included everyone and everything.
“To be sure you stay within your means, add up what you plan to spend, and compare it to how much money you have budgeted to spend on the holidays,” Pippidis said.
“Remember, you don't have to spend a lot of money to find that perfect gift for someone,” she said. “Hundreds of great gifts can be purchased or made by hand for under $10.”
Even if you have started your holiday shopping, Pippidis says that it is not too late to take inventory of what you have purchased. Look at your receipts and identify how much you’ve already spent and how much you have left to spend.
She also suggests using cash instead of adding to credit debt. Do some comparison shopping and take advantage of seasonal sales. Avoid making rushed and last-minute decisions, since impulse buying can be a budget’s worst enemy.
“Remember it’s not the amount of money you spend for a gift that matters the most,” she says. “It’s that you cared enough to give something special.”
For additional financial advice, contact your local county extension office. The following publications are available free to the public: Developing a Spending Plan, Communicating about Money, Managing Credit Wisely and Paying Down Your Debt. In Kent County, call 730-4000; in New Castle County, call 831-1239; and in Sussex County, call 856-7303.
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