Tip of the Month - November 2009

Saving & Spending During the Holidays

The holiday season is upon us, and with it comes the commercials, advertisements, decorations… and desires to spend money. Even if you don’t get into debt, overspending can take away from important saving goals.

Here are some tips to help you shop wisely this holiday season and beyond:

Get Organized
Develop a plan to relieve stress, time, and money. Set up a holiday spending budget and include your gift list, food, decorations, cards, postage, travel and entertainment. Plan time for shopping. If you can, take a couple of days or half-days off so you won’t be rushed.

Keep Track of Your Spending
Using cash or your debit card will help you keep track of your spending. When using cash, you should use envelopes to allot specific amounts for gift giving and other holiday spending. With your debit card, make sure to write down every transaction. Or, you can use Andrews Federal’s Online Banking to track your account transactions.

Remember Your Goals
Do you want to get out of debt? Buy a home? Save for an emergency fund? Take a long vacation? Retire early? Don’t allow the pressures to spend during the holiday season take your focus from your goals. Keep those goals ahead of you and resist the urge to splurge.

Watch Out for The Media
Television and Internet ads play a large role in enticing us to spend money. Understand that marketers study consumer buying habits and the psychology that surrounds spending. You have your list and your plan, stick to it!

Other Shopping Tips

Comparison shop online and through weekly sales papers.
Make sure your Internet purchases are secure and done at well-known websites.
Review return and exchange policies.
When purchasing gift cards, find out any fees or restrictions associated with its usage.
Keep all sales receipts.

Plan for Next Year
Each year brings another opportunity to do better than previous years. Keep in mind that there are great sales after the holiday season and you can grab some good items for next year. Finally, open an Andrews Federal Planners’ savings account to set aside money each month for 2010 holiday expenses. By saving $50 per month starting in January, you can have $500 by November 1st!

To learn more about creating a spending plan and to access tools to help you better manage your finances, visit the Online Education Center’s Interactive Financial Tools page.