Planning is key to a financially happy holiday
Black Friday, Small Business Saturday and Cyber Monday have passed.
For some, that means they鈥檝e tied up (or nearly so) holiday shopping. Others, meanwhile, are still contemplating what to buy.
Either way, holiday gift buying means spending money that may or may not have been planned for.
Gary Boatman, a certified financial planner from Monessen and financial contributor to the 缅北禁地, said shoppers need to make a plan and stick to it.
鈥淚t鈥檚 important to have a budget and know what you can afford to spend,鈥� said Boatman.
While plunking down plastic to buy on credit may seem tempting, it鈥檚 not best solution, he said.
鈥淩emember, credit cards purchases must be paid back in cash. Do not charge more than you can pay back in full during January. Credit card interest rates are often 18-20%,鈥� said Boatman. That means an unpaid balance can end up costing the buyer a whole lot more than the purchase price of an item.
In fact, according to a holiday shopping survey by WalletHub, 35 million Americans are still paying down debt from the holidays in 2018.
鈥淏e reasonable. Stay in budget,鈥� Boatman said.
Although it may be tempting, Boatman added, it鈥檚 never a good idea to dip into emergency money or savings to fund Christmas gift purchases.
鈥淚f you do, maybe the furnace or hot water tank stops working in January and you have a big problem,鈥� he said.
If you can鈥檛 afford to give an expensive gift, Boatman suggesting thinking about gifts that come at little or no cost.
鈥淪ometimes, you may be able to help with some home chores or do something that does not cost money,鈥� he said.
Handmade gifts or baked goodies represent low-cost options that can stretch holiday spending money, and offer a one-of-a-kind gift.
Another cost-saving idea, said Boatman, is drawing names for a gift exchange. Many families, especially large ones, do that because it means savings for everyone.
鈥淭his way everyone gets something and budgets are less stressed,鈥� added Boatman.
Some families also opt to only exchange gifts between the youngest members of the family, foregoing gifts among adults.
Whatever budget planning was or wasn鈥檛 done for this year鈥檚 holiday season, Boatman said now is the time to start thinking about 2020.
鈥淪ome people use Christmas clubs at their financial institution to save for next year,鈥� he said.
And, he reminded, the season shouldn鈥檛 be focused on what you give.
鈥淓njoy the season with your family. The holiday season is about a lot more than just buying presents,鈥� Boatman said.