How to save for the holidays

Jennifer Palmer, Staff Writer

Published: April 27, 2008

Spring may be in the air, but experts say Christmas shoppers should have started saving money already.

“Every year, Christmas is in December,” said Jeff Ashford, a financial planner at Access Financial Resources Inc. in Oklahoma City. “Go ahead and plan on that.”

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Estimate how much money you will need, divide it by 12 and save that amount each month, he said. Your Christmas fund can be a separate bank account, a change jar, or even an envelope in your freezer.

Shoppers who plan can avoid using credit cards and the dreaded holiday bills that follow. Here are some tips to save money now for the holidays:

- Set up an automatic withdrawal through your bank. “It’s always easier to save it before you see it,” said Sue Lynn Sasser, an associate professor of economics at the University of Central Oklahoma.

- Shop with coupons and add the amount you saved to your fund.

- Watch your food habits. Eating out, designer coffee and super-sizing eat up a lot of disposable income.

- Trade DVDs and CDs with friends, rather than buying new.

- Don’t wait until the last minute rush, when shoppers are more likely to overspend.

- Buy one gift a month, rather than shopping all at once.

- Get a part-time job around the holidays.

- Get extra cash by selling items you no longer need on eBay, Craigslist or Amazon.com.

- Cancel a gym membership or a telephone landline you no longer use, and bank the savings.

- Consider giving a gift that doesn’t cost money. A child may enjoy a trip to the park more than a plastic toy.

Sources: Jeff Ashford, financial planner; Sue Lynn Sasser, professor at UCO; Eastern Gifts and Things ; MSN Money.

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