December 4, 2001

Tips on How to Manage Your Money for the Holiday Season

Shoppers are facing the anxiety of how to manage their money with the upcoming holiday season. This year, the International Mass Retail Association expects that consumers will spend an average of $800 to $1,000 on holiday items. For some, that holiday spending will push them into debt.

"Whether you set limits for each person in your shopping list or set a total spending limit, writing out a budget will keep your spending in control," says Debra Pankow, NDSU Extension Service family economic specialist." Consumers without a holiday spending plan are the most likely to encounter serious debt problems."

How to reduce spending on holiday purchases is the most frequently asked question by consumers Pankow says. "Start now to control spending is the answer. Your chances of overspending decreases greatly."

There are six smart shopping strategies consumers can use Pankow says.

• Stay within your budget limits. Disciplining yourself to not exceed these limits is the key to avoiding unmanageable bills.
• Set aside shopping time. Shopping when you do not have time or when you are distracted by something else is not very productive.
• Be aware of "buy now pay later" offers. If you cannot afford an item now, wait with your purchase and make certain you can afford it later.
• Be efficient. Call stores in advance to see if they have items that are on your list. Go where you have a choice of stores to choose from and if you plan to return to that store, make a note of that item and the store where you found it.
• Pay with cash wherever you can. Take a predetermined amount of cash when you shop to keep from overspending.
• When you finish shopping, stop! And always carry your shopping list with you and mark off the names once you have bought their gifts.

"A realistic and affordable plan for spending your money and your time should always be at the center of your holiday plans," Pankow says. "Develop a plan and carry it out. The holiday season is a time to share, enjoy family and friends, and give more of ourselves. By planning ahead, you can be creative and thoughtful, yet stay within your budget."

Anyone interested in obtaining information on holiday shopping can contact their local Extension agent or contact Debra Pankow at (701)231-8593 for more details.

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Source: Debra Pankow, (701)231-8593, dpankow@ndsuext.nodak.edu
Editor: Rich Mattern, (701)231-6136, Rihard.Mattern@ndsu.nodak.edu
Writer: JJ Camarillo, (701)231-8371, Camarillo45@Hotmail.com