You don’t have to be a Scrooge to give within your means

Start with a list, check it twice and remember that giving gifts that are less expensive doesn’t mean you aren’t just as nice

I was out with friends last week when the topic turned to Christmas dinner. They always have me over; this year it’s going to be on Dec. 27 because, with grown kids, carving out Christmas is less about the date and more about the time spent together. It takes a plan to work all the family dynamics into the holiday season.

Some people also find it challenging to get through their shopping without blowing their budgets (or their minds). It doesn’t have to be hard. But you do have to exercise some discipline as you whip out your wallet and pay, pay, pay.

The easiest way to stay on track is to make a list. If your heart is bigger than your wallet, go over your list and decide who doesn’t really need to be on there. Are there people to whom you can give a token gift to celebrate the season? Can you use Secret Santa so you don’t have to buy for your whole brood?

The best gifts don’t have to cost a penny. Offer your time for babysitting, cooking meals, house cleaning, massaging, sewing, knitting, transporting or whatever else you’re good at. Clip a picture of the service you’ll provide and be clear on how often you’ll do it, as in “I’ll babysit one weekend a month from February to June.” Better yet, make your own coupon book.

Retailers count on your oohs and ahhs while you’re out shopping for your lovies, so make this rule: No self-gifting while you’re holiday shopping. The onefor-you-one-for-me approach is just an excuse to be self-indulgent. And it’s a sure way to end up with a holiday hangover. If you see something you really like, put it on your own list for Santa.

Want to remove the temptation to over-shop? Go with cash. So many people who whip out their plastic end up spending more than they planned, then get stuck making the minimum payments. At 18-percent interest, $500 in holiday spending would take seven years to pay off and cost $365 in interest. Ouch!

As for nabbing that new store credit card to get that 10 or 20 per cent off your purchase for the day, don’t do it. Retailers must be making a packet on interest and late fees in order to offer those special deals. If you’re the sucker who ends up carrying a balance, you’ll spend far more in interest than you saved on purchases. And, yes, opening and closing store cards can mess with your credit score.

Before tossing anything into your shopping cart, ask yourself: Why you are buying it? Are you just fulfilling your duty to give a gift? Are you showing off? Are you trying to keep up? Or are you giving something you can afford that your friend, sister, son or partner will truly enjoy receiving?

If they really love you, your mom, dad or BFF aren’t going to be happier that you put yourself in financial stress instead of giving them something that might be slightly smaller and within your means.

If they are judging you on your present, then you shouldn’t be buying them anything!

Gail Vaz-Oxlade is host of Til Debt Do Us Part and Prince$$. She blogs daily at gailvazoxlade.com. Follow her on Twitter @GailVazOxlade.