November - Money tips for Christmas planning

MONEY TIPS FOR CHRISTMAS PLANNING

It is that time of year again! As we approach the festive season, shopping malls, TV adverts and junk mail are encouraging us to embark on the usual Christmas practice of “shopping ‘til we drop” – or these days, shopping until our fingers get tired of tapping in details online.

But we also start to brace ourselves for the subsequent financial shock, when the credit card bills arrive in the New Year. There are a many things you can do to help turn Christmas into a financial success rather than financial excess. Remember too, that the Christmas experience is about relationships and being togethe , not just about presents... but her are some tips that we hope will help in your planning:

1. Set a budget for your Christmas spending

First, draw up a budget for your Christmas spending – not just presents, but the additional spending on food, drink and socialising. Try not to allow yourself to be pressurised – even by your children or close family – into spending more than you can really afford. Pay cash when you can.

2. Use savings wisely

Make sure you know how your extra spend is going to be covered. Perhaps it means withdrawing funds from a savings account, in which case make sure you access the money from the account paying the least interest.

3. Cash in “Christmas Club” accounts and loyalty cards

You can also finance your spending by cashing in the balance held in a “Christmas Club” account – built up during the year to spread the burden of the Christmas spend. Maybe you also have credits on your store loyalty cards such as Fly Buys, Airpoints . These don’t earn you any interest, so cash them in to help finance your Christmas spending.

4. Pay off credit cards quickly

If you use a credit card, try to ensure that you pay off the balance in full when the bill arrives in the New Year. Generally, credit cards are an expensive way to borrow money – and store cards are even worse, given that they generally have higher interest rates.

If you’re taking advantage of credit card deals that offer 0% rates on balance transfers, make sure you know the date at which this introductory “teaser” rate comes to an end and pay off the balance before then.

5. Check your overdraft details

If you’re funding your spend via an overdraft, make sure it’s authorised and you know the interest rate and any other charges your bank applies to overdrafts.

Don’t use an unauthorised overdraft, as this is likely to attract high charges. If in doubt, check with your bank first.

6. Shop around and look for deals - online shopping can be helpful too

When it comes to shopping, further good rules apply. Shop around and look for deals – many retailers are discounting their prices even as the festive season gets underway and there are good deals to be had.

7. Give vouchers to use in the sales

Be prepared to give shopping vouchers or credits as a part of your Christmas presents – Christmas is always followed by the sales period (with some retailers starting their sales on Boxing Day).

Used after Christmas, these gifts will be able to buy their recipients more than prior to Christmas. You may even want to snap up the bargains in the sales to prepare for next Christmas too!

8. Hold on to your receipts

As ever, keep your receipts in case presents need to be exchanged or refunded – and for those items you send to your friends, put in a gift receipt to enable them to return the goods, if needed.

9. Keep a running total

Keep a close check on your spending – maybe by compiling the running total on your mobile phone or tablet. The bills will come in after Christmas as surely as night follows day, but you’ll be better placed to manage them, if you know what the bottom line of your spend amounts to on each card.

10. Get your finances on track in the New Year

Finally, once Christmas is out of the way, you might need to regroup and make plan to get back on an even keel.

How to make Christmas shopping less stressful:

Ø Make a list of all the gifts you wish to buy before you go shopping. If you wait for inspiration to strike, you could be wandering aimlessly around the shopping centre for hours.

Ø Encourage group gifting when appropriate - all chip in for a present or choose one person each to buy for rather than a present for everyone..

Ø Buy a few extras, such as chocolates, just in case you forget somebody or you have unexpected guests bearing gifts.

Ø If possible, do your Christmas shopping early - in the first week of December or even in November. Some well-organised people do their Christmas shopping gradually over the course of the year, starting with the post-Christmas sales.

Ø Buy your gifts by mail catalogue or over the Internet. Some companies will also gift-wrap and post your presents for a small or no additional fee.

Ø Look for the Sales , Outlet stores or bargains on line. Quality over quantity ...

Ø Make as many as you can - make preserves, crafts, give vouchers such as for a massage, or to have an experience or to do a job for someone

Ø Run a Secret Santa arrangement - can be lots of fun

Ø Some people are replacing all gift giving for sponsoring others less fortunate than themselves - such as through Tear Fund or Oxfam - or donating to the City Mission

The Christmas lunch (or dinner)–some tips to help:

Ø If you are cooking lunch at home, delegate tasks. You don't need to do everything yourself.

Ø Consider keeping it simple - for instance, you could always arrange for a 'buffet' lunch, where everybody brings a platter.

Ø Buy as many non-perishable food items as you can in advance - supermarkets on Christmas Eve are generally extremely busy.

Ø You may need to order particular food items (such as turkeys) from your supermarket by a certain date. Check to avoid disappointment.

Ø Consider doing your food shopping online. The store will deliver your groceries to your door. (Keep in mind this option is more expensive than visiting the supermarket yourself.)

Ø Book well in advance if you plan to have lunch at a restaurant. Some restaurants may be fully booked for months before Christmas, so don't wait till the last minute.

The little extras.......
Other ways you might be able to reduce the stress include:

Ø If you send cards, write up a Christmas card list and keep it in a safe place so that you can refer to it (and add or delete names) year after year.

Ø Plan to write your Christmas cards in early December. Book a date in your diary so you don't forget.

Ø Christmas cards with 'Card only' marked on the envelope can be posted at a reduced rate during November and December.

Ø Overseas mail at Christmas time takes longer to arrive. Arrange to send cards or presents in the first half of December, to avoid disappointments (and long queues at the post office).

Ø Today many people send email cards and greetings – more cost effective!

Ø For great savings, buy Christmas necessities (such as cards, wrapping paper, ribbons and decorations) at post-Christmas sales or use recycled paper.

Relationships are what it is about ...
Stress, anxiety and depression are common during the festive season. If nothing else, reassure yourself that these feelings are normal.

Stress reduction strategies include:

Ø Have realistic expectations ... Don't expect miracles. If you and certain family members bicker all year long, you can be sure there'll be tension at Christmas lunch.

Ø Avoid known triggers. For example, if politics is a touchy subject in your family, don't talk about it. If someone brings up the topic, use distraction and quickly move onto something else to talk about.

Ø Use relaxation techniques, such as doing exercise or taking time out, or do deep breathing or focusing on your breath, to cope with anxiety or tension.

Ø Family members involved in after-lunch activities (such as cricket on the back lawn) are less likely to get into arguments. Plan for something to do as a group after lunch.

If you would like help managing your budget, always know EAPworks is only phone call away - give us a call on

0800 SELF HELP - 0800 735 343 or book on our website www.eapworks.co.nz