How to Stretch Your Dollar This Christmas

At Christmas, we celebrate the birth of our Savior, but it is also a time for giving and gathering. Here’s how to make the most of your dollar and keep the holidays from putting a dent in your wallet.

Make a Shopping List and Check It Twice. Create a list of who you will gift and what you will purchase them, making sure to include price limits for each item. Only buy items on the list to avoid overspending. 

Comparison Shopping Is Your Friend. Always compare the pricing on potential purchases with the same items at other stores to ensure you’re paying the lowest price. If you have a smartphone, you can check alternate pricing without even leaving the store.

The early bird gets the worm. Start shopping now. This timing not only allows you enough time to try to find bargains but also to spread the cost of presents over several paychecks. In fact, consumers who wait till the last minute or shop all at once are much more likely to spend more money than those who begin shopping early.

The cash advantage. You can reduce the amount of debt you incur over the holidays by limiting the use of your credit card. Instead, pay for your gifts in cash or use your debit card for in-person shopping.

Remember to use your debit card in credit card mode, so you don’t have to enter your personal identification number (PIN) in the store’s credit card machine. This practice helps protect the security of your PIN.

Safety First. When shopping online, use your credit card rather than a debit card. If your card number is hacked, most credit card companies will not hold you liable for the charges if you report the fraudulent transactions promptly. With a debit card, a hacker can quickly drain your bank account, and your bank may not reimburse you. If you have a credit card that offers rewards, Christmas shopping might be a good opportunity to use this card -- as long as you’re careful about budgeting payments. You may earn cash back and bonuses.

Avoid the Latest-and-Greatest Tech Trap. When it comes to technology, you can save significantly by gifting a slightly older version of a device that was the newest version just a few months ago. Most people don’t care if they receive the latest features.

Consider Homemade or DIY Gifts. Where appropriate, you may be able to provide some of the people on your shopping list with items you’ve made. Examples include photos for grandparents, craft-related gifts or homemade food, such as cookies for children.

The Win-Win of Gifting Charitable Donations. Making charitable donations in someone’s name for the holidays is a win-win situation. Not only are you gifting someone you care about, but both you and the receiver will feel good about your role in the philanthropy. Moreover, the receiver will be notified of the contribution but does not need to know how much you donated unless you tell them.

Plus, some charitable organizations give contributors little thank-you tokens, such as T-shirts, socks or stuffed animals. You can wrap these items and send them to the receiver along with the donation notification.

Little Things Mean a Lot. Cut back on items you don’t need for the next few months to free up that money for Christmas shopping. For example, cancel music or video streaming services that you can do without temporarily. Bring your own coffee and lunch to work instead of buying it. Save on heating costs by taking shorter showers or turning your heat down to 65 before bed. Taking these small steps for a few months can make a difference in your shopping budget.

We hope these suggestions help you enjoy the spirit of Christmas and your shopping experience.

 This is an update of a previously published Tomorrow article.