Don’t fill your stocking with holiday debt

MEXICO, Mo. – There’s nothing so holly jolly about waking up the morning after Christmas to find that Santa left you a big lump of debt in your stocking.

Planning and budgeting helps you avoid the post-holiday hangover caused by overspending, says Virgil Woolridge, University of Missouri Extension family financial education specialist.

“One major mistake made during the holidays is not making a plan on what and how much to spend for the holidays,” he says. “Making a list helps you develop a spending budget and reduces impulse buying.”

Individuals and families have their own values and traditions that dictate holiday gift-giving practices. Within your family group, try to set dollar limits for gifts and rules so that expectations are known prior to shopping.

Create a game plan before you leave home, Woolridge says. If you leave home with a list, you’ll resist the temptation to overspend. “Buy. Don’t shop,” he recommends. Review newspaper ads and circulars to compare prices. Check online for downloadable coupons or price matching.

Your list should contain the names of people you will buy for, what you will buy and how much it costs. If you outline this, you’ll know how much you are spending before you leave home.

Be like Santa: Check your list twice before you leave home. Decide if you will give small gifts to service providers such as baby sitters, hairstylists and delivery people. Incomplete lists lead to last-minute budget-busting shopping.

Allow plenty of time to shop. If you’re making a day of shopping, consider putting something in the slow cooker for dinner when you return home. That way, you’ll only have to buy one meal away from home.

Your holiday gift-giving budget should include a line item for food supplies. Homemade candies, cookies and breads make nice gifts, but they add to your food budget for the month. Also consider the cost of giftwrapping, cards and shipping when planning your holiday spending. Costs for baby sitters and extra fuel also add to your expenses.

Give gift cards as a way to avoid overspending. Or consider giving a “gift certificate” to perform a service such as baby-sitting, cleaning or yardwork for someone.

Don’t be your own Santa. Specials tempt you to buy gifts for yourself. The best gift you can give yourself is a debt-free holiday season, Woolridge says.

For more information from MU Extension on personal and family finance, contact your local MU Extension center, or go to extension.missouri.edu/finance or www.missourifamilies.org/money.