Checking Lists Twice

For instance, now is the time to really figure out who needs a gift. You'd be surprised how many people would like to be freed of the obligation of exchanging gifts. Guys tend to think of immediate families. Women on the other hand usually have these extended lists of people, neighbors, friends from college, social groups, etc. These are tough traditions to break. Be honest with yourself when evaluating these gifts. Fortunately, many of these groups do a secret Santa type exchange - if they don't, maybe this would be a great year to start. Once the costs of this kind of gift giving is identified, you can list and re-list in order of importance.

Often older folks, such as parents, aunts and uncles or grandparents have everything they need. Buying them a trinket they will never use is a colossal waste of money and time. They are often the most understanding as well when it comes to financial matters. Send them a card with a letter ­ not one of those newsletters either ­ but a personal note, a picture of the kids, or an invitation to a holiday get together. This means a lot more the older you get. It takes time but the costs are small. Kids should top the priority list followed by your spouse or partner. If there is no money left over for each other after the kids have been taken care of, that is fine. Entering the New Year in good financial health is a gift that is truly priceless often freeing up money for vacations and things you really need. The simple act of sitting down and discussing your budget is an important first step as well and could, hopefully begin a lifetime of financial discipline. That is a real gift.

2. Involve the whole family

If you have older kids, tell them to make a list and give them a dollar limit. If you have younger kids, help them with their lists now and keep to your budget with them. Small children like lots of gifts ­ not expensive ones. Once they begin to understand the costs of things they want, it is time to give them a budget as well. When did fruit in the stocking become passé? Growing up is never fun; growing broke is worse.

3. Gift cards

Deloitte & Touche recently issued a survey that says this is the new hot item for gift giving. These folks spot consumer trends and this is one of the easiest to use in your budget. If brother Tommy or sister Jeannie has been budgeted $25 this year, get them a gift card. Use cash to pay for it and they get the gift they want, often at after Christmas bargain prices. You can make it more special by wrapping it in a box with a pair of gloves or warm socks ­ be sure to budget these into the total as well. Beware of buying these gift cards with a credit card, avoid credit card gifts because they come with service charges and if you are buying on line, shipping will probably eat into the amount of the card so take that into consideration as well. Amazon has free shipping on a lot of items. For instance, if you buy three of my books at a 30% discount they will ship them for free.

4. Control Holiday Meals and Parties

These are silent drains on available cash and should be budgeted as well. If you break with tradition and cut corners, such as turkey instead of rib roasts or leg of lamb, potlucks instead of open houses, smaller more intimate gatherings with family and friends, these all add to the holiday season with a much smaller price tag and become a tradition in themselves. Watch the alcohol. Drink but do it responsibly with a keen eye on the costs.

5. Avoid expanding the decorations

Decorate with what you have instead of adding more lights, extra footage of garland, or new must have items that get deeply discounted after the holiday. When it comes to decorations, think next year. Take it a step further: buy an artificial tree and never pay the cost of fresh again. These trees have come a long way in fooling everyone with their authenticity and the costs are one time. Maybe this is the year you actually string popcorn!