Overindulgence and impulse buying during the Christmas season can lead to overspending and poor financial health. You can survive Christmas gift-giving without jeopardizing your financial health with a little planning, prudence and self-control. Christmas comes at the same time every year. There is no excuse for not planning ahead.
Here are a few suggestions for Christmas 2009:
Make a list and check it twice. Before you do any shopping in person or on line, decide ahead of time the people to whom you will give gifts this year.
Make sure you know sizes and favorites. Find out favorite colors, favorite sports teams, favorite fragrances, etc. There is nothing worse than receiving perfume that does not work with your body chemistry or a clothing item that does not fit or in a color you never wear. You don't like it when this happens to you. Don't do this to your loved ones.
Decide on a price range for each person and stick to it. This bears repeating. Decide on a price range for each person and stick to it. Create your budget accordingly and stick to it!
Curtail the cards and carry cash. When you shop in person, leave your credit, debit and ATM cards at home. Carry cash. When the cash is gone, you are finished shopping. If the cash is gone and you haven't purchased a gift for every person on your list, rethink the purchases you've already made. Return the items that exceed the designated price range and purchase less expensive items.
If you don't relish the idea of pushing through crowds or if you are fed up with cyber surfing, here are a few suggestions that will help you avoid both:
Give store gift cards. Make sure you know the favorite store of each person on your list. Limit the amount to what you can afford.
Give generic gift cards. (AMEX, VISA or MasterCard) That way you don't have to know favorite stores and each recipient has the freedom to shop wherever the gift card is accepted. Again, limit the amount to what you can afford.
Consider making a charitable donation. Please note that making a charitable donation in the name of each loved one is very altruistic, but the materialistic nature of most people will not be fulfilled by such a noble gesture. Only resort to this "gift" if you know the person's favorite charity and you know they will be truly appreciative. Again, limit the amount to what you can afford.
Consider giving the gift of time. Commit to scheduling quality time with the people on your list who will truly appreciate this priceless gift. Create an attractive gift card to memorialize your commitment. It can be hand-written on nice stationery or you can use computer graphics to capture the thought. Pin down the date as soon as possible so that you follow through before next Christmas rolls around. Economical options include:
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Sharing an evening watching the recipient's favorite movies on DVD. (You rent the DVDs and provide the snacks.)
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Walking through the recipient's favorite park during their favorite time of year. (You pay for the snacks.)
- Visiting the recipient's favorite museum. (You pay for any admission fee/suggested donation.)
Consider giving the gift of time and energy. Commit to assisting a loved one with a chore they dislike or a task that would be easier if they had help. This might be especially appropriate for the older folks on your gift list. Possibilities include household chores, yard work and shoveling snow. The task could be a recurring item like mowing the lawn or cleaning the bathroom(s) or it could be a one-time project like cleaning the garage, the attic or the basement. Just make sure it is something you are ready, willing and able to do. And make sure it is something the perspective recipient is ready and willing to have you do. Some people may perceive your well-intentioned gift as an indictment of their housekeeping abilities.
Prudence now and making a plan for 2010 will keep your finances in good health.
And never lose sight of the reason for the season, the very first Christmas gift.
John 3:16
For God so loved the world that He gave His only begotten Son, that whoever believes in Him should not perish but have everlasting life.
Share the health.
Deborah White, MD, MBA