University of Wisconsin - Extension

Contact: Gayle Rose Martinez, gaylerose.martinez@ces.uwex.edu, 715-743-5121

December is a month that puts high demand on many people’s finances and personal energy. You may feel pressure to spend on many fronts. Charities increase their solicitations and holiday traditions often include exchanging presents, decorating and cooking special meals. The gift-giving spirit of the holiday can sometimes lead to overspending and overdoing.

"In your zeal to prepare for the holidays, one thing can lead to another and before you know it, you have harmed yourself financially; for example, by using your credit card too often or incurring fees for going over a spending limit," says Gayle Rose Martinez, accredited financial counselor and Clark County family living educator with the University of Wisconsin-Extension.

"Preparing for a special meal may start out with buying a ham. Then you add all the trimmings, hors d’oeuvres, sweet treats and drinks and the price has tripled," says Martinez.

Purchasing presents can also escalate spending beyond your original plan. Many stores have strategically planned displays that leave shoppers vulnerable to impulse buys—such as stocking stuffers located near the check-out.

"A way to protect yourself from overspending is to stay mindful of your intentions," says Martinez. "Think about the purpose behind charitable donations and gifts. For example if you would like to make extra financial donations to an organization or a church, make a list of those places to which you want to give, along with a specific amount. Keep your list with you. If you are tempted to go beyond your original plan, take a moment to explore your motivation. Ask yourself ‘Is this truly what I intended to do with my holiday spending?’ You may discover that if you give more than you intended it will hurt you financially."

Martinez also warns that It is easy to fall prey to impulse buying. "Make a list of those you want to purchase gifts for and the amount of money you plan to spend. If you already have an idea of what you want to buy, write that on your list also," she advises. "Loved ones don’t want you to hurt yourself financially just to buy them a holiday gift," she adds.

One of the tools you can use during this season is to stop and wait awhile before you buy. Enjoy thinking about gifts you’d like to purchase. As time passes, you may think of creative ways to satisfy those desires that are within your budget.

"When a seductive impulse tempts you to go beyond your means, take a deep breath and ask yourself, ‘Will this hurt me financially?’" says Martinez. "If the answer is yes, brainstorm a way to make the purchase differently. Ask yourself: ‘Can I buy a different brand, buy slightly used, look in another store for a better value, share the expense with another, or perhaps make a different choice?’ And don’t forget that If you take home presents you regret buying, you can always return them."

It is easier to resist overspending when you are feeling rested, so if possible, avoid shopping when you are exhausted, Martinez advises.

"Stay focused on your original intent, take time to plan, take a deep breath and give yourself time to think before you buy," says Martinez. "These are your best safeguards to staying financially safe during the holidays.