Byline: Carmen Wong Ulrich
The holiday season can leave you feeling spent–in more ways than one. Use these week-by-week ideas to minimize the damage to your bank account.
You’ve been good, preparing for the holidays all year long. You snapped up wrapping paper and cards at 50 percent off on December 26, 2005, shopped sales throughout the year to stock up on gifts, booked trips in advance…. What’s that? You didn’t? Not to worry. You don’t have to be one of the nearly two-thirds of Americans who stress about money during the holiday season. There are still plenty of ways to save in the four weeks between Thanksgiving and Christmas. And if you shop after the holidays this year, well, then you’ll be ahead of the game for 2007.
4 weeks to GO!
WEEK OF NOVEMBER 27
BUDGETING
CREATE A MASTER PLAN.
Controlled holiday spending is about discipline, preparedness, and priorities. To do:
* Make a list of all your gift recipients, then group them into tiers. “Tier one can be members of your family, tier two those who get a smaller gift, and tier three those who don’t have to get a gift,” recommends Ben Hecht of the nonprofit lifestyle and personal-finance site www.thebeehive.org.
* Set dollar limits for each level based on what you can afford (say, $20 for tier two), and tally them for your total budget.
* Don’t forget nongift expenses, such as entertaining or a new party outfit. By tracking spending, you’re less likely to let expenses spiral out of control.
TRAVELING
COORDINATE GROUP TRIPS.
If your extended family is planning to travel for the holidays, build a home page at www.triphub.com. The free site allows you to book flights and hotels, coordinate plans, and schedule activities. “You can search, find, and input the best deals to share with your group,” says site spokesperson Anne Taylor Hartzell. “Parties of at least 10 people can often get group hotel rates to save money. And groups that arrive and depart together can split the cost of ground transportation.” Bonus: Having a central location for trip details also cuts down on costly back-and-forth phone calls and in-box-clogging e-mails.
SIDESTEP BOOKING FEES.
Purchase tickets on airline websites to avoid booking fees. Otherwise you might pay up to $20 at the ticketing office or up to $10 when you call the airline (exceptions are JetBlue and Southwest Airlines, which don’t charge such fees). Travel sites, too, charge nonrefundable booking fees, according to Anne Banas, executive editor of SmarterTravel.com, when the same low fares can often be found on the airline’s site. Some examples: Orbitz carries a fee of up to $12 based on airfare, airline, and destination. Travelocity charges $5 for domestic tickets and up to $10 for international. And Expedia charges up to $5 a ticket.
GET WHEELS FOR A STEAL.
If you plan on renting a car, check out www.carrentalexpress.com for price quotes from local independent car-rental agencies, which can be well below the big guys’ prices.
DON’T PAY PREMIUMS.
Millions of Americans take to the slopes in December, according to Troy Hawks, editor of the National Ski Areas Association Journal. To slash costs:
* Find out if your employer offers deals. Programs such as Working Advantage provide discounts on lift tickets at many ski resorts.
* Reserve your rentals online. Many stores offer up to 20 percent off if you make a reservation before your arrival.
* Avoid buying passes at the base of the mountain. Your hotel or local ski shops may sell them for less.
* Consider a half-day pass. Full-day passes are often wasted when people sleep in or break for a cozy cup of hot chocolate.
3 WEEKS and Counting
WEEK OF DECEMBER 4
SHOPPING
USE CASH.
When they charge purchases, consumers tend to spend 30 percent more than if they use cash, according to Robert McKinley, founder and chief executive officer of the payment-card research firm CardWeb.com. “Cash makes people think twice or buy sale items,” he says. If you prefer credit cards, use the one with the lowest interest rate. Last year the most popular method of buying gifts was by debit or check card, according to the National Retail Federation. But some banks deduct anywhere from 10 cents to $1.50 from your checking account every time you make a purchase with a debit card (check with your bank to find out if it charges a fee), so you might want to avoid using that card.
GET PAID TO SPEND.
The online-coupon site www.fatwallet.com offers cash back when you make purchases with partnered vendors through its website. Search for coupons and promotions at your favorite retailers and, if they’re FatWallet partners, sign up to receive cash rebates. For example, shop Target through FatWallet and earn 4.4 percent cash back. Rebates build up in your FatWallet account, and when you’re ready to cash in, request a check (minimum of $10) or get cash back via PayPal.
GET TECH FOR LESS.
Consumer electronics and computers top many a wish list. Spending on such items more than doubled last holiday season, according to consumer research conducted by Goldman Sachs, Nielsen/NetRatings, and Harris Interactive. But technology doesn’t come cheap, so:
* Check out sites like www.techbargains.com for deals, says Dory Devlin, a technology adviser for Yahoo! Tech.
* Read retailers’ 90-day return policies on electronics. Some stores charge a 15 percent restocking fee (basically, a return penalty), while others, such as Wal-Mart, don’t.
* Consider buying a model from last year. If you’re willing to settle for fewer bells and whistles, this can be a solid–and the only economically viable–option.
BUYING GIFTS
REGIFT WITH A TWIST.
You could cash in unwanted gift cards to buy presents for others, but what to do if your gift card is from Victoria’s Secret and your recipient is named Jeff? Exchange it for another at www.swapagift.com. For a $4 fee, trade yours in for one from another retailer, then use the new card to buy a gift for your recipient. You can also sell gift cards on the site for cash. Another site, www.zunafish.com, allows you to swap CDs, DVDs, and video games with others for $1 per trade plus postage.
BUY ONE BIG FAMILY GIFT.
Instead of spending a bundle on lots of small gifts, save your money for a trip later in the year, says Janet Bodnar, author of Raising Money Smart Kids (Kaplan Business, $18). “Put a map or a travel brochure in your kids’ stockings,” she says, plus give an inexpensive gift they can use once they get there–pail and shovel or flip-flops for the beach, for example–to build excitement. And let them help plan the vacation itinerary. “This is a way,” says Bodnar, “for them to feel involved.”
GIVE A FIRST-CLASS GIFT.
You don’t have the frequent-flier miles to send your parents or best friend on a first-class trip, but you might have enough to bump up the class level on a leg or two of a journey they plan to take in the next few months. A one-way upgrade typically requires 15,000 miles, so at about a penny per frequent-flier mile, you’ve given a gift worth $150 that you didn’t spend money to buy. Randy Petersen, founder of the frequent-flier site FlyerTalk.com, suggests:
* Call the airline at least 21 days in advance of the departure date to avoid fees and to increase the chances of upgrade availability.
* Ask for your miles to be applied to their tickets, which must be issued before the upgrades can be processed.
* Don’t transfer miles from your account to theirs or you will be charged transfer and processing fees (which start at $80 on American Airlines and $85 on United Airlines). Check the policies with your airline.
CONSIDER A GROUP GIFT.
Buying presents for your brother’s family can be difficult, not to mention pricey. Gift memberships to a local museum or zoo can cost the same as two or three individual gifts. For example, the San Diego Museum of Art offers an annual “Household” membership for $75, which includes four guest passes and a 10 percent store discount. That beats the onetime regular cost of $10 per adult and $4 per child. The Bronx Zoo costs a family of five $66 for one visit. But for $120, the zoo offers an annual membership that includes four parking passes (worth $8 each) and a 10 percent store and restaurant discount. Bonus: Part of that price may be tax-deductible. To find a zoo or a museum near your gift recipient, consult www.museumspot.com.
2 weeks LEFT
WEEK OF DECEMBER 11
RUNNING ERRANDS
PUMP LESS.
Shopping online is one way to save gas, but if you must put tires to asphalt, consider the following tips from Joanne Helperin, senior features editor of the automotive site Edmunds.com:
* Plan your shopping route accordingly so you’re not backtracking or covering the same ground.
* Drive at a moderate speed. It saves up to 37 percent versus driving fast.
* Consult real-time traffic reports at www.traffic.com to avoid snarls, since constant stop-and-go driving burns extra fuel.
* Shop after 8 P.M. to avoid rush-hour traffic. Most stores and malls are open late for the holidays.
* Shut off your engine if you’re waiting for your daughter at the mall for any longer than one minute. It saves up to 19 percent in fuel consumption.
SHIPPING
SHOP AROUND FOR POSTAGE.
Before you head to the nearest shipping company to send packages, compare rates online. RedRoller (www.redroller.com) offers quotes for Eastern Connections, DHL, Overnite Express, and the U.S. Postal Service. The site www.iship.com compares costs for FedEx, DHL/Airborne, UPS, and the post office. This year Christmas falls on a Monday; using ground service from these shippers, send packages no later than the following dates to arrive by Friday, December 22.
* U.S. Postal Service, December 13.
* UPS, December 14.
* DHL, December 15.
* FedEx, December 15.
ORGANIZING FINANCES
GET WHAT YOU’RE OWED.
In the end-of-the-year haze, consumers may forget to retrieve money due them, whether it’s funds from an employer’s transportation reimbursement program, a flexible-spending account (though eligible participants have until March 15, 2007, to claim medical expenses), or a gym reimbursement from a health-insurance provider. Don’t leave money on the table: Submit the necessary paperwork (usually receipts and forms from your employer’s benefits department) for cash relief when January bills arrive.
MAKING GIFTS
USE YOUR HANDS.
A homemade gift doesn’t have to be a strain on your time, patience, or bank account. A few ideas:
* Bring vanilla sugar–a simple hostess gift that requires nothing more than combining a vanilla bean and one pound of granulated sugar in an airtight container and letting it sit for a week or two. The cost? About $6.
* Whip up a beauty scrub for friends by blending a cup each of oats and almonds and a tablespoon of baking soda in a food processor, suggests Nava Lubelski, author of The Starving Artist’s Way (Three Rivers Press, $14). “I add a note that says to mix with water for a great facial,” she says.
* Give someone an inexpensive journal that you start for her, with favorite quotations or an entry about a shared memory.
1 week don’t PANIC!!
WEEK OF DECEMBER 18
DECORATING
DECORATE ON A DIME.
Americans spent about $8 billion on winter holiday decorations in 2004, according to Unity Marketing, a marketing consulting firm. To keep your share of those billions as low as possible, Lara Shriftman, coauthor of Party Confidential (Bulfinch Press, $30), suggests creating a candy bar. “Fill various sizes and shapes of glassware with red candy and set them on a tray as a centerpiece,” she says. “You can put Red Hots or peppermints in small round bowls, red and white M&M’s in glasses, or licorice in vases. It’s chic, creative, and inexpensive.” And it’s edible.
GIFT WRAPPING
KEEP IT BASIC.
Get creative with gift tags–ticket stubs, playing cards from an incomplete deck, and paper coasters from a local watering hole don’t cost a thing. Use a hole punch and attach them to gifts with ribbon or tape. Or don’t use tags at all: Wrap presents in white paper and arm your kids with crayons or markers to write the recipients’ names all over their packages.
LAST-MINUTE PREP
GRANT FAVOR IOUs.
Still stuck on what to get your neighbors or the drivers from car pool? Sometimes a helping hand is worth more than anything money can buy. Here are ideas to get you thinking about what your recipient might appreciate.
* For anyone: A dog walk, dry-cleaning pickup, a car wash, or a night of babysitting.
* For kids: A weekend without chores, a ride to the mall at their request, or an extra hour to stay up past bedtime.
* For someone special: If you’re savvy in the kitchen, offer a cooking demonstration. Shutterbugs can schedule a photo session, tech experts can clean up a hard drive, and organizers can neaten a closet. Sure, it’s a classic idea, but we’ve made it even easier for you: Print out a blank coupon at www.realsimple.com/iou.
SEND E-GIFT CARDS.
Don’t pay a shipping fee to send a last-minute gift certificate.
* Send one from a retailer that will e-mail an announcement with a special code, redeemable online by the recipient. You’ll be spared wrapping, and there’s no risk the gift won’t make it on time.
* Try www.giftcertificates.com. Its Super-Certificates can be personalized, have no maintenance fees or expiration dates, and are accepted by hundreds of well-known merchants.
* Check out retail sites that let you print a gift card on your printer, if you’d rather present a physical certificate. Apple’s iTunes Store (www.apple.com/itunes/store) and Fandango Bucks (www.fandango.com/fbs), for movies, are two sites that let you do this.
HAVE YOURSELF A FRUGAL LITTLE CHRISTMAS
How Steve and Annette Economides, publishers of the HomeEconomiser newsletter and authors of the forthcoming book America’s Cheapest Family Gets You Right on the Money (Three Rivers Press, $13), celebrate the holidays.
* Save all year long.
“In January we set an amount to spend on gifts, divide it by 12, and set aside that much money every month.”
* Shop eBay.
“Each of our five children gets a book, a movie, and a CD, plus one big gift that we find on eBay. We found a first-edition copy of John Hersey’s book Hiroshima for $10, including shipping, and a mint-condition JanSport backpack worth $150 for $30. We shop very early in the morning or late at night for auctions that close on weekdays.”
* Fake it.
“Our 10-foot artificial tree, which would normally cost several hundred dollars, cost about $100. We bought it from the JCPenney clearance catalog in March.” Steve misses the scent of pine, but “most any place that sells live trees will give you the trimmings for free,” he says. “We place those on the piano and other furniture for decor and the smell.”
* Be entertained for free.
“Universities and high schools host free holiday recitals and concerts. It’s a great way to get holiday cheer. We also make a night of driving around our neighborhood with cookies and cocoa to see the holiday lights.”
* Make your own decorations.
“We make our own confetti by cutting scrap paper. Then we scoop it all up to use next New Year’s. But don’t use a micro-shredder. We did that once. The pieces were too small to pick up, so we ended up having to use the Shop-Vac.”
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“Christmas begins about the first of December with an office party and ends when you finally realize what you spent, around April fifteenth of the next year.”
P.J. O’Rourke, Modern Manners
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