13 Ways to Waste Money During the
Holidays
From shopping without a list to going overboard with décor, here's how you
can end up spending too much this season.
By Cameron Huddleston, Kiplinger.com
The holidays can put a big dent in anyone's bank account. In fact,
consumers are expected to spend nearly $750, on average, this year on
gifts, décor, greeting cards, food, candy and more, according the National
Retail Federation. That's not small change.
Sure, it's the season of giving, and you might feel compelled to spend more
than you do during the rest of the year to spread holiday joy. But if
you're not careful, you'll end up wasting money if you use the holidays as
an excuse to abandon good financial habits. Here are 13 holiday money
wasters to avoid:
1. Not setting a budget. Before the holiday season starts, take some
time to write down all the extra things you'll be paying for – such as the
restaurant meals you'll eat while out shopping, ingredients for holiday
goodies that you'll make for friends and family, postage for holiday cards,
cab rides home for late-night parties, and the list goes on. Set a spending
limit and keep tabs so that you don't exceed it and end up without enough
cash in your account to pay bills. One way to stick to a holiday budget is
to put cash in envelopes designated for certain expenses. You'll know
you've reached your spending limit when the cash from the envelope is gone.
2. Shopping without a list. Don't go into a store without knowing
what you're going to buy for friends and family this holiday season.
Otherwise, you could get caught up in the excitement of the bustling
stores, submit to high-pressure sales tactics or the frenzy of last-minute
shopping and overspend. If you exceed your gift-giving budget, you'll have
to cut back in other areas or rack up credit-card debt.
3. Shopping at the wrong times. Black Friday is synonymous with
deals but not everything goes on sale the day after Thanksgiving. For
example, you'll find the best prices on toys and name-brand TVs in
December. You'll find more apparel deals at online retailers on Cyber
Monday (the Monday after Thanksgiving), according to dealnews.com, which
tracks deals. See Best and Worst Buys of November and 12 Things Not to Buy During the Holidays to learn more
about timing your purchases to get the best prices.
4. Not comparing prices. Make sure you don't spend more than you
have to on gifts by comparing prices before you make any purchases.
Shopping online makes it easy to find the lowest prices for the items on
your gift list. See 10 Best Ways to Find Holiday Deals Online for tips. And
if you're in a store, use smart phone apps, such as RedLaser, to scan
barcodes to compare the store's price with other retailers' offerings. Then
ask if the store can match the best price you find online. See How to Score the Best Black Friday Deals for more
strategies.
5. Racking up a credit-card balance. You might think you're saving
money by buying all your gifts and holiday items on sale. But if you charge
everything to a credit card and don't pay off the balance, those savings
can easily be erased by the interest you'll be paying on that balance. Use this calculator to find out what the real cost of
carrying a credit-card balance is.
6. Using layaway. Layaway allows customers to select items they want
and pay for them over a period of time. Once final payments are made, items
may be picked up. This method of payment can be a good option for consumers
who would otherwise use a credit card for purchases and not pay off the
balance quickly (thus accruing interest). However, there are several
reasons layaway can be a money waster, such as the fees you'll have to pay.
See 5 Reasons Layaway Plans May Cost You More.
7. Paying too much for shipping. If you plan to do your shopping
online, you often can avoid paying for shipping by having your purchases
shipped to a retailer's brick-and-mortar store or by taking advantage of
free shipping promotions. You can find free shipping codes at FreeShipping.org,
or you can take advantage of Free Shipping Day on December 17, when more than 1,000
merchants will offer free shipping with guaranteed delivery by Christmas
Eve. See 6 Things to Know About Free Shipping to learn more ways
to score free delivery. You also don't want to pay too much for shipping by
waiting until the last minute to send gifts to friends and family. For
example, the U.S. Postal Service flat rate for shipping a medium-sized box
by priority mail is $11.35 versus $39.95 for next-day express mail
delivery.
8. Not keeping an eye on your airfare after you buy because most
airlines and online travel agencies will give you a rebate – usually in
travel credits or vouchers – if your flight's price drops below what you
paid. Yapta.com will send you alerts if the price drops on a flight you've
booked. Be aware, though, that some airlines can charge hefty fees for
re-booking your flight. If the fee outweighs your rebate, it's not worth it
to make a change.
9. Being too generous with donations. If you stuff a few dollars
into the Salvation Army pot every time you go to a store or say yes to
every colleague who is collecting money at the office for a special cause,
your generosity could easily break your budget. Choose an organization or
two that you particularly care about and an amount you're willing to give,
then politely say no to other requests for money. A note of caution: Be
especially wary of e-mail and telephone solicitations because they could be
scams (see 10 Online Risks to Avoid During the Holidays).
10. Tipping too much. Although tipping during the holidays shows
your appreciation, you don't need to compensate everyone who provides a
service. Nor should you tip too much (either because you don't know what is
customary or you feel pressured to give beyond your budget). Consider
handing out year-end tips to one to three people who have given you
exemplary service during the year. Some prime candidates: baby sitters,
hairstylists, cleaning persons, mail carriers, newspaper deliverers and
nursing-home workers. Take our quiz
on whom to tip during the holidays and see 6 Things to Know About Holiday Tipping to learn how
much to give. If your budget does not permit tips or gifts this season,
write a note thanking the individual for his or her service and explaining
that you are not tipping because of your circumstances, not because of a
lack of good service.
11. Going overboard with holiday décor. You don't need to turn into
Clark Griswold from National Lampoon's Christmas Vacation and cover your
house with lights. You can easily make your home look festive without
spending big bucks on a light display and racking up a huge electric bill.
Try the natural approach, instead – fresh greenery collected for FREE from
your yard or a friend's yard.
12. Buying bad gifts. Don't waste your money on gifts that no one
wants, such as useless gadgets, tacky Christmas apparel or the infamous
fruit cake. Instead, buy a gift card if you don't know exactly what to give
someone on your list. Opt for all-purpose cards, such as an American
Express or Visa gift card, rather than store-specific – unless you know the
person's favorite store. In that case, don't pay full price for a gift
card. Visit sites such as Plastic Jungle and Gift Card Granny
for discounted cards.
13. Granting your kids' every wish. You might not view buying every
item on your children's wish list as a waste of money – especially if you
cherish seeing their eyes light up every time they open a gift. But keep in
mind that many of those items might end up under a bed or in the back of a
closet within just a few days. Your money will be better spent on a few
items (or even just one item) you know they'll really use. See Kiplinger's
kids and money expert Janet Bodnar's advice for getting through the holiday
season without going overboard.
Reprinted with permission. All Contents ©2012 The Kiplinger Washington
Editors. Kiplinger.com.
Economic
Calendar for the Week of November 26 - November 30
|
Date
|
ET
|
Economic Report
|
For
|
Estimate
|
Actual
|
Prior
|
Impact
|
|
Tue. November 27
|
08:30
|
Durable Goods
Orders
|
Oct
|
NA
|
|
9.8%
|
Moderate
|
|
Tue. November 27
|
09:00
|
S&P/Case-Shiller
Home Price Index
|
Sept
|
NA
|
|
2.0%
|
Moderate
|
|
Tue. November 27
|
10:00
|
Consumer
Confidence
|
Nov
|
NA
|
|
72.2
|
Moderate
|
|
Wed. November 28
|
10:00
|
New Home Sales
|
Oct
|
NA
|
|
389K
|
Moderate
|
|
Wed. November 28
|
02:00
|
Beige Book
|
Oct
|
NA
|
|
NA
|
Moderate
|
|
Thu. November 29
|
10:00
|
Pending Home
Sales
|
Oct
|
NA
|
|
0.3%
|
Moderate
|
|
Thu. November 29
|
08:30
|
GDP Chain
Deflator
|
Q3
|
NA
|
|
2.8%
|
Moderate
|
|
Thu. November 29
|
08:30
|
Gross Domestic
Product (GDP)
|
Q3
|
NA
|
|
2.0%
|
Moderate
|
|
Thu. November 29
|
08:30
|
Jobless Claims
(Initial)
|
11/24
|
NA
|
|
NA
|
Moderate
|
|
Fri. November 30
|
08:30
|
Personal Income
|
Oct
|
NA
|
|
0.4%
|
Moderate
|
|
Fri. November 30
|
08:30
|
Personal
Spending
|
Oct
|
NA
|
|
0.8%
|
Moderate
|
|
Fri. November 30
|
08:30
|
Personal
Consumption Expenditures and Core PCE
|
Oct
|
NA
|
|
0.1%
|
HIGH
|
|
Fri. November 30
|
08:30
|
Personal
Consumption Expenditures and Core PCE
|
Oct
|
NA
|
|
1.7%
|
HIGH
|
|
Fri. November 30
|
10:00
|
Chicago PMI
|
Nov
|
NA
|
|
49.9
|
HIGH
|
|
|
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