Make holidays special without spending a fortune

Dyer County Extension Agent Beth Bell encourages women to keep holiday spending in check this year. The average Tennessee family is still paying for Christmas in July or August of the following year. [Click to enlarge]

Pundits say the nation's economy depends on it.

But, family economies call for a bit of discretion.

The average American family spent $849 on Christmas last year and paid off the last of the merry bills in June.

Tennesseans aren't exactly average. They need an extra month or two to pay for all the holiday cheer.

Dyer County Extension Agent Beth Bell presented the sobering statistics during the Healthy Woman Girls Nite Out event earlier this month. Bell, who counsels families in financial trouble, said it's scary to think that people work half a year to pay for one day of fun.

Spending too much is easy to do, and we overspend for a variety of reasons. For example, we fail to plan for holiday expenses, we become victims of advertising or we equate the amount of money spent on gifts with the amount of love we feel for the recipient.

A Holiday Spending Plan helps families establish - and stick to - a holiday budget. It includes obvious things like gifts and wrapping paper and less obvious items, such as extra postage and tips for those who provide services all year long. [Click to enlarge]

Bell asked the audience members if they knew how much they'd spent on Christmas last year. Less than 10 percent did.

"It all starts with a plan," she said. A well-designed plan will reduce stress during the holidays and help track expenses.

Get the whole family involved. Now's the time to start. Ask family members which holiday traditions are most important and develop a spending plan that fits your budget.

One strategy Bell uses starts during the Thanksgiving holiday. Each member of the family draws a name and is then responsible for providing one gift for that person. Bell said the system works well with each person receiving one nice gift. Set a price limit on gifts to control expenses, she said.

Or, create a new holiday culture - one that doesn't depend on spending. Consider "white elephant gifting," or passing on items you no longer need to persons who need them now. Consider sharing your time or talents instead of giving someone "stuff." "We all have enough stuff," she said.

Bell and a group of friends decided a few years ago to stop exchanging tangible gifts. Now, they gather each year and go caroling. She said they're not the world's best singers, but they have fun together and they share the holiday spirit with others as they go from one selected family to the next. At the end of the evening, they all gather for hot chocolate.

Keep track of the presents you plan to give this year with a Holiday Gift Plan. List the recipients, the gift you plan to buy, the amount you plan to spend, the location where the gift was purchased and the amount spent. Keep the list and all gift receipts in an envelope. [Click to enlarge]

Establishing new traditions isn't hard, but it takes communication. Start the conversation with "Can we talk?" Ask your family what you can do to spend both money and time wisely this year.

"You have the power in your hands to make this a wonderful season - one that doesn't keep you in debt until July," she said.

Bell provided two work sheets: one for keeping up with holiday gifts and another to track holiday spending.

The gift-planning work sheet provided room to list gift recipients, potential gift ideas, the amount you plan to spend, the place where the gift was purchased and the amount paid. Bell suggested keeping the plan and all gift receipts in an envelope. Having all of the receipts in one place will make it easier if you need to return one.

The holiday spending work sheet features three columns: what you plan to spend, what you actually spent and the amount above or below the budget. Rows include categories such as gifts; travel expenses; goodies for Christmas stockings; wrapping paper, ribbon, boxes and bags; decorations for the tree, door and table; entertainment expenses, such as invitations and food; Christmas cards and postage; holiday expenses at work or children's gift exchanges; church and charitable contributions; pet boarding fees if you go out of town; long-distance calls during the holidays; and gifts to those who provide services, such as the minister, newspaper carrier, mail carrier, hairdresser or barber, baby sitter, maid and lawn care crew.

"We fail to calculate these things," Bell said.

Once you have a plan, stick to it.

To make sure you're not spending too much, Bell recommended:

* Hiding the credit cards. Adopt a cash-only policy for holiday expenses.

* Adding a sticky note to your credit card if you can't give up the card. List every purchase on the sticky note and keep a running balance to remind yourself how much you owe.

* Freezing your credit cards in a block of ice. You'll have to thaw the ice before you can use the card and the extra time will help eliminate impulse purchases. Don't cheat by microwaving the block of ice; Bell said she's been told that the microwave will erase the card's magnetic strip.

The Healthy Woman program is coordinated through the Dyersburg Regional Medical Center. Membership is free. Monthly programs focus on a variety of issues of interest to women. For more information, call Healthy Woman Coordinator Judy Boehmler at 287-2109.

Jeanie Campbell of Dyersburg and Terrie Funaro and Jan Herrman, both of Halls, prepare lists of people they plan to give Christmas presents this year. The women were among 265 persons attending the Healthy Woman Girls Nite Out earlier this month. [Click to enlarge]

Looking for ways to trim holiday spending?

Consider these suggestions from Dyer County Extension Agent Beth Bell:

√ Deck the halls with what you have or swap ornaments with friends.

√ Think quality, not quantity, when it comes to gifts. Give each person on your list one thing - and then stop shopping.

√ Shop for others - not for yourself.

√ Avoid deadline shopping because it causes stress and may force you to spend more.

√ Pace yourself. Shop for one person at a time. Or, organize your gift list by stores and tackle purchases in one store at a time.

√ Be organized.

√ Select a gift-hiding place that you can actually remember.

√ Get plugged in. Consider shopping online - in your jammies. Before purchasing anything, do a quick "google" search for coupons. Bell said she almost always finds a coupon for free shipping. Sign up for e-mail newsletters from your favorite merchants; they'll send you coupons and notices of sales and discounts.