UW Professor Outlines Budgeting Tips for the Holidays

By many Christmas is considered one of the greatest times of the year, but it can also be a risky time for some people financially. It is easy to get a little out of control spending on those that we love, but in all realit a great holiday season does not always revolve around spending every bit of income that you have plus some. John Mittelstaedt from the University of Wyoming's Marketing and Management Department gave us a few tips to stay on track this holiday season when it comes to finances. Here are a few things to ponder before going out holiday shopping:

1. Christmas only comes once a year, but credit card bills come twelve times in a year. Think about how many times you are comfortable seeing the effects of the decisions you make?
2. In January, you will still have rent or mortgage, car payments, utilities, etc.  Set those aside first; then budget for the holidays.
3. When looking at a gift, ask yourself if it’s still a good deal at 15-20% more than the marked price?  If it takes you a year to pay for it on your credit card, that’s the real price you are paying.
4. Agree to spending limits before you go to the store (e.g., siblings can spend no more than $20 on each other). Adhere to your decisions. There are thoughtful gifts in every price range.
5. Pay cash whenever possible.  We always spend more with plastic than with paper.
6. Think about your best holiday memories as a child: were they related to gifts, or people? We buy presents for our children to make memories, but sometimes the longest lasting memories are ones related to the gift of time.
7. Spend locally.  Your merchants are your neighbors and friends. They would rather you spend a little locally, all year long, than spend a lot out of town.
8. Buy a gift for someone less fortunate, even if you don’t know them. Giving a gift to someone who can never say “thank you” is as much a gift for you as for them.