Holiday Spending - Plan Now to Avoid a Spending Hangover

Thinking about holiday spending yet? Well, the folks who want you to spend are thinking about it. And you should be too - start planning now to be sure you can stick to your budget and still buy the stuff on your list. Make a list, check it twice The biggest reason to plan early is to make sure you capture all of the holiday spending items, not just presents. Of course, gifts for others are typically the biggest expense. But here are some other items to put on your list: Travel. Are you flying or driving to see relatives? Are you staying with them or in a hotel? Food. Parties at your house or your friends houses typically involve food even if it is just taking a bottle of wine or bringing an appetizer. Host one, attend two and this can start to add up. Decorations. Some years you just need to bring out last year s lights and ornaments. Other years you need to get new items because the old stuff is just worn out or not working. Maybe you buy a real tree each year. Or you have a new house. This stuff is not cheap and can be a big source. Stocking stuffers and Christmas cards. Some folks stockpile Christmas cards that they got from last year s after-Christmas sales. Maybe that is you - or maybe not. And the stocking stuffers that can be even more expensive than the big gifts! A CD fits nicely into a stocking - but at $10 or so per CD, it s not a very inexpensive extra. Add the dollars to the list Now that you have a list, including all the presents you believe you need to buy, start putting dollars to it. Real dollars so you know how much holiday spending is going to cost you. If you have gotten really specific on what you are going to buy - a High School Musical DVD - it will be easier to put a cost on the item. If you just have Sara s present as an item, you can add how much you are willing to spend on Sara. Either way, you will get a realistic starting point. This helps in a couple of ways. First, it gives you a starting point. Many people overspend because they do not have a plan in the first place. They buy things as they see them, forgot what they have gotten for whom and then buy more. Second, it helps you figure out now if you are already over your budget. Adding up how much you have spent after the holidays does not help you meet your budget. Adding it up now and keeping track of your purchases against it does. Third, you can figure out if you are really spending your money on what is meaningful to you. Would you rather get your cousin a $50 sweater or give her a coupon for an afternoon of lunch and a movie? It might cost the same, but the actual value of the gift might be completely different. Those are just a couple of ideas to get started on planning for this holiday season and all the holiday spending that goes with it. Now, how are you going to prevent having a hangover? Jennifer Peek is an accountant and the mother of two. She writes about all aspects of kids and money at her website, money-and-kids.com See more information on holiday spending for parents and kids at money-and-kids.com/Christmas-spending.html