Black Friday — the unofficial start of the holiday shopping season — arrives this week.
Taking a few minutes now to plan your holiday spending could help you avoid taking on debt that stretches into the new year.
Here are some tips for planning your spending during holiday season:
• Create a holiday spending plan. Decide how much you can afford to spend this season. Include gifts, travel, parties, decorations and any other holiday expenses. Look at how much you’ll earn between now and the holidays and determine how much you’ll need to set aside each paycheck to save the amount you need.
• Think about low-cost ways to give. Consider different methods to make the holidays fun without breaking your budget.
• Start a holiday gift exchange. Draw names and only buy a gift for the person you choose.
• Make a list of the people you’re giving gifts. Decide how much you can spend on each one. If you have specific gifts in mind for each person, start comparing prices online and keep an eye out for discounts and sales.
• Keep track of what you spend. If you find that you don’t need to spend as much as you thought in some categories, shift the extra funds to others. Or save the money and give yourself the gift of a head start in the new year.
• Avoid impulse purchases. Instead, make a note of the product, where you saw it and how much it was. Consult your spending plan, and if there’s room, return for the purchase.
The Consumer Financial Protection Bureau’s website has more information.
