Home > Pressroom > News Release: Holiday spending tips

 

For Immediate Release Contact: Patrick Harris Director of Media Relations Ohio Credit Union League pharris@ohiocul.org 800-486-2917

Getting the Most Out of Your Holiday Budget

Tips on how to stretch a dollar as forecasters predict slow spending

Columbus, Ohio (November 26, 2008) – Citing economic uncertainty, American consumers are sharply decreasing their holiday spending this year.  According to the ninth annual holiday spending survey conducted by the Credit Union National Association (CUNA) and the Consumer Federation of America (CFA), 55 percent of consumers said they are planning to reduce spending at least “somewhat,” with 27 percent of all respondents indicating that they plan to spend “much less than last year.”

Though budgets are stretched, consumers are looking for ways to make sure they can still spread holiday cheer.  As we approach the busiest shopping day of the year, here are shopping tips from Ohio’s credit unions, CUNA, and the CFA to help you reduce holiday spending without sacrificing gift quality.

Make a Budget and List: Before you begin shopping, decide how much you can afford to spend and stay within that budget. Staying within budget will be much easier if you make a price list of all gifts and other holiday items you plan to purchase. It's easy to overlook extra expenses for holiday food, party clothes, decorations and postage.

Comparison Shop: You can easily save more than 10 percent on most items, sometimes considerably more, by comparing prices at different stores. Use the Yellow Pages to identify sellers and call several retailers. Or use the Internet and compare offers online. When shopping online, shop wisely. Be sure you are purchasing from a secure site (look for the “https” in the website address and the locked padlock icon on the toolbar), and review emailed statements for accuracy as you receive them.

Pay Off Debts Quickly: You’re less likely to overdo it if you pay in cash. If you must make holiday purchases using credit, use a lower-interest card and pay off this debt as soon as possible early next year. Don’t borrow more than you can repay in several months. Remember that credit card debt is relatively expensive. And if you only make the required minimum monthly payment, you may never pay off the debt.

Plan for Next Year by Opening a Christmas Club Account: While these accounts do not pay much if any interest, they provide a practical way to save small amounts over time. Ask your credit union or bank to automatically transfer funds from your checking to your Christmas Club account every month. The discipline of saving reinforces your good budget intentions.

Be Smart About Gift Cards: If you don’t use a gift card promptly, it can lose value in one of several ways: it can expire and become worthless; monthly maintenance fees can erode its value to zero; the store that issued it can go out of business or stop honoring gift cards. If you give or receive a gift card, read the fine print. And remember, a gift card is handy and convenient, but like cash, if you lose it, it's gone.

Pay Attention to the Return Policy. Some stores are tightening their policies. Pay attention to the return policy when you make a purchase; keep receipts and note time limits, restocking fees, and other factors that may affect the recipient.

Find Low- or No-Cost Ways to Celebrate. Adding a few changes can ease the strain on your spending budget. For example, draw names to limit the number of people for whom you purchase gifts; give homemade items; make your own gift wrap; organize a potluck rather than trying to make, and pay for, the entire holiday meal.

-30-

The Ohio Credit Union League, with offices in Columbus, is a state trade association representing 424 credit unions. Credit unions are not-for-profit financial institutions owned and democratically controlled by their members. Ohio credit unions provide savings, loans, and other consumer financial services to their 2.6 million members. To learn more, visit www.OhioCreditUnions.org.