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Monday, December 02, 2002

By Patricia Sabatini, Post-Gazette Staff Writer

It's that time of year when temptation can get the best of us -- from the temptation to gorge (the average Thanksgiving meal weighs in at a belly-bursting 3,000 calories) to the temptation to overspend, particularly on holiday gifts for the children.

	The gift that keeps giving The higher your income bracket, the greater the likelihood that you've recycled, or "regifted," a gift you received to cut costs, according to a survey by Consumer Credit Counseling Services Southwest in Houston. The survey also found: Pets are more likely to receive a gift from women, 34 percent, vs. men, 29 percent. Seventy-nine percent of women polled plan for the holidays by creating a shopping list, vs. 20 percent of men. Of the men surveyed, 23 percent plan to spend more this year than last, vs. 15 percent of women. Overall, 79 percent planned to use cash, checks or debit cards instead of credit to buy their gifts. -- Patricia Sabatini

"The thing that gets people into the most trouble is they buy gifts and spend money, and then decide how they are going to pay for it," said Sanford Anderson, president of Luttner Financial Group, Downtown.

Planning ahead by creating a realistic holiday budget, and sticking to it, is the key to avoiding a financial hangover.

"For most people, it really is the thought that counts, so you can be a good giver and happy receiver and stay within your budget and be a whole lot happier in January" when the bills come due, Anderson said.

With that goal in mind, several budgeting experts gave their best tips for spending wisely and getting through the season without taking on a mound of debts and regrets:

Decide how much cash you have to spend, draw up a budget and be serious about sticking to it.

"You don't have to be fanatical, just be realistic," said celebrity penny-pincher Mary Hunt, publisher of the newsletter Cheapskate Monthly.

Besides gifts, don't forget to include the cost of all the little extras, such as greeting cards, wrapping paper, stamps, decorations, food, party clothes and children's holiday costumes.

Pay with cash or checks. Numerous studies show shoppers tend to spend more if they use credit cards. Leaving the credit cards at home also avoids paying double-digit interest rates on revolving balances.

"Credit card companies don't really do consumers a favor by making so much credit available this time of year," Anderson said. "It's just like putting cookies on the table for someone on a diet."

If you must use credit, keep track of what you're spending, which can help resist the urge to go overboard. Caryn Bilotta, director of education for the Consumer Credit Counseling Service of Western Pennsylvania, suggests keeping a list of purchases on a slip of paper fastened to your credit cards with a rubber band.

Ask sales associates about upcoming markdowns on items you're interested in buying. Many retailers will reveal sale dates to keep you from shopping the competition.

For people you know really well, agree to set a low dollar limit on gifts. That puts the emphasis on creativity and cleverness, rather than how expensive something is.

Instead of separate presents for each member of a household, consider a family gift, such as a "movie basket" filled with candy, pop, microwave popcorn and gift certificates for movie rentals.

Set up a grab-bag style family gift exchange, having each person draw one name from a hat. That limits everyone to buying one present and gives you more time to come up with something meaningful.

Give the gift of time, such as washing the car, cleaning out the attic, providing baby-sitting duty or dog-walking services.

Mail packages before the second week in December so you don't wind up paying for express service.

Shop the January sales for big savings on decorations, cards, wrapping paper and presents for next year.