11.05.2008

POV I 10 Tips to Reduce Christmas Spending from Money Smarts by Salve


I learned a few more things while preparing for my interview at ANC’s Shoptalk, as well during the show and would like to share them with you:

1. Use a budget. Makes you consciously think of what you put in your shopping carts. Write a shopping list.

2. If you must shop, go for frugal shopping hot spots. The psychological rewards of saying yes is the same whether you do it at Zara’s or Divisoria. (Read
my previous post to to find a list of frugal shopping hotspots.)

3. Set aside a Christmas fund. In government finance, a sinking fund allows the government to set aside every month some money for future payments. We can do the same in our personal finances. A 12,000 budget for gifts and noche Buena every year for example will not be as heavy when you prepare for it by seting aside 1,000 a month from January to December.

4. Don’t forget the “hidden costs” of Christmas holidays, like contributions for company/church Christmas parties, Kris Kringles for children, etc.

5. The law of supply and demand in economics indicate that if you buy in January, you will get lower prices because demand is bound to drop. Not so, says Pia Hontiveros-Pagkalinawan, who is a self-confessed Divisoria shopper. She says apparently shop-owners have realized that children who get cash gifts during Christmas time go shopping in January!

6. Be a bulk customer: contact your company’s suppliers

7. Recycle gifts

8. Keep Christmas parties simple, go potluck!

9. Think of giving the gift of experience instead of toys

10. Don’t go overboard when buying toys. Some of the most expensive toys these days kill children’s imagination

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