Page 18 THE VILLADOM TIMES III • December 12, 2012 The countdown to the holiday season has officially begun with decorations on store shelves and gift catalogs filling mailboxes. A recent study by the Consumer Electronics Association shows that each consumer plans to spend $1,634 overall this holiday, up 11 percent from last year. Unfortunately, much of that spending will be done on credit cards. That may make consumers feel gloomy when they get their bills in January. Smarter money management is a common New Year’s resolution for many people. So why not get a jump on things now by budgeting and spending wisely this holiday season? People often go off the financial rails when the holidays roll around, say personal financial planning experts at the New Jersey Society of Certified Public Accountants. Developing a spending plan and sticking to it can help keep you on track and prevent you from drowning in post-holiday debt. Tips for holiday financial happiness: Create a spending plan. What can you realistically afford to spend? Decide who you will buy gifts for this year and how much you will spend on each person. Then, stick to your plan. Categorize your spending plan. Your holiday spending plan shouldn’t just include gifts. Don’t forget to account for all of the accessories that accompany the holiday gifts, like wrapping paper, bows, and tape. Doing some entertaining this year? Be sure to budget for party clothes, decorating, food, and beverages. Traveling to see family? Airfares, gasoline, hotels, and meals should all be included in your holiday budget. Remember to include a category for any charitable giving you usually do – and for holiday cards and postage. Avoid impulse buys. Do some research about when and where the best places are to buy the gifts on your list. Store Spending tips for the upcoming holiday season Shutterstock flyers and door-buster sales can offer big savings if you are willing to do the legwork to find the deals. Plan and start shopping early so you don’t feel pressured to grab something at the last minute that will ultimately cause you to blow your budget. Keep track of spending. Little items here and there can tip you over the top of your budget. Track as you buy so you always have a mental note of where you are in your spending process. Keep those receipts in case a gift recipient needs to make a return or exchange. If you find yourself going over your limit, look at where can you cut back to make up the difference. Think outside the gift-wrapped box. Talk to your loved ones about establishing traditions where the focus is on spending time together, not spending money. Attend a cultural event or volunteer together, draw names for a gift exchange instead of buying gifts for everyone, pool funds and make a donation to a charity you all support, plan a cookie exchange, or host a potluck dinner instead of an expensive sit down meal. Plan how you’ll pay. Ideally, create your budget and stick to it by paying with cash or a debit card. Average purchases using cash/debit cards are about 15 percent less than credit card purchases. If you are like many people who want to accumulate air miles or points on a credit card, be sure you can pay off your bill when it arrives in January. Pay on time and in full to avoid finance charges, late fees, and exorbitant interest rates. Use holiday budgeting as a teachable moment for your children. Include the children in the planning so they learn to prioritize expenditures, evaluate options rationally, and have buy-in on major purchases and charitable giving selections. “Don’t let overspending take the cheer out of your holidays,” said Judith M. Malloy, CPA. “Creating a spending plan and sticking to it can help you start and end the holidays on a happy note, letting you focus on what’s important, which is time with family and friends. That way, you’ll start the New Year feeling confident and in control of your finances.” To find more information on this topic and various personal financial matters, visit the NJSCPA’s public service website at MoneyMattersNJ.com.