Hey, I’m no Grinch. I think holidays -- especially those that pull family and friends together in the dark of winter -- should be brightly lit, well-lubricated and a bit over the top.
That means gifts, beautiful wrapping with lots of ribbons, sweets you avoid at other times, the good bottle of wine, the extra candles -- the works! Go for it all, I say.
It happens just once a year. It is special. And, those of you who say that simple times together are better than parties and presents can try convincing your kids, cousins, colleagues and anyone else you’ll be celebrating with this year.
To do it right, you’ve got to spend money.
Just don’t go so far overboard that you bury yourself in debt for the new year, or wreck your long-term financial plans. Done right, the holidays can be great, and also lay some groundwork for future prosperity.
Here are some ideas for making the most of your money.
Charge it
Use a credit card that offers a cash rebate. Put all your holiday purchases on the same card and pay it off when you get the bill. Do not let it slip into next year.
Point, click
Use the Internet to shop smart. With the boom in online shopping comparison sites like www.shopzilla.com, www.froogle.com and www.shopping.com, there’s no excuse for paying more than you have to for commodities; and that includes electronics, books, music, kitchen goods, home furnishings and other gift items.
Once you know how much you want to pay for an item and who has the best price, get there via one of the rebate sites like www.ebates.com, www.butterflymall.com, or www.consumerclub.com for an additional savings of 3 percent 25 percent.
Go local
Want to shop locally? Check out www.cairo.com before you get in your car. It lists sales at your local stores. You can put in a holiday gift list and it will notify you when the items on your list go on sale.
Easy on the gift cards
Gift cards can be fun, but keep them in their place. They are best for teens and pre-teens who love to shop but never have enough money, and who don’t want you picking out their clothes anyway.
But, if you’re in the habit of giving gift cards to everyone, think again. If the recipients can afford to do their own shopping, the card may seem less special. You’ll end up spending more than you would simply picking out individual gifts. And some of that money will end up wasted, as many recipients leave money abandoned on gift cards.
(And here’s another tip: If you’ve got the kind of credit card that offers 3 percent or 5 percent back on grocery purchases, buy your gift cards at the grocery store.)
Done? Then stop
Stop shopping when you’re done. That may seem obvious, but it’s the things you buy after you’ve bought everything else that really put your budget over the top. Use a list, and when you’ve filled it, don’t go to the mall. Shoppers spend an additional 3 percent for every day over 26 that the Thanksgiving-to-Christmas season stretches, according to new research from the University of Missouri-Columbia. This year it’s a 30-day season, so plan to do all your shopping by Dec. 20, then give yourself the next four days off.
DIY gifts
Do some do-it-yourself. You don’t have to make all of your gifts, Martha Stewart style. But one day of family baking, sewing or candle making can create the spirit of the holidays and save money. You can enhance the effect by giving useful tools or small appliances as gifts.
Give gift of savings
More than three out of five Americans (62 percent) say they are thinking of giving family members a savings-friendly gift like a bond or piggy bank this year, according to The Center for a New American Dream (www.newdream.org), a nonprofit organization that advocates alternative and simplified holidays. That’s good thinking. For older kids, you could give starter shares in a stock or mutual fund or a certificate promising to match personal savings up to a certain level.
Or, why not use holiday togetherness to create a family investment club or a Holidays 2006 family savings club. Then you’ll be all set for next year’s extravaganza.