It's Shopping Time

Will Christmas shopping push you into the red?

By Colin Allen, published on December 01, 2002

Christmas season is now in full stride since the passing of Thanksgiving weekend. The Friday after Thanksgiving marks the traditional kickoff of holiday shopping, this year being no exception. The National Retail Federation (NRF) released its annual report on “Black Friday”—named after the sale profits that pull many retailers out of debt and put them back in the black—and announced that three out of four Americans went shopping on Friday. By Christmas day, the NRF projects that more than $200 billion will be spent during the holiday season, or about $650 per person. Still, because of the stubbornly sluggish economy, many people are determined to cut back on holiday spending. Here are three tips to avoid a fiscal diet when the New Year begins

• Pay in cash: Avoiding credit cards and their affiliated fees is one of the easiest ways to keep track of spending. Sticking with hard cash lowers the number of impulse buys and gives teeth to spending caps.

• Make a list: Plan your purchases before hitting the malls. Writing a list keeps you focused and limits the distraction of other potential gifts. It also serves to remind you of how much you plan to spend on each person.

• Remember what it's all about: If you are about to buy something that will put you in the red, stop and ask yourself: Would the recipient want you to go into debt? Probably not. So find another, more affordable present, and its recipient will be none the wiser. But your wallet will.