Eight tips for planning Christmas 1998 - mostly economic advice on how to save for gift giving - Brief Article

Ebony, Dec, 1997

When should you start planning for next year's Christmas? If you answered now--December 1997--you're way ahead of the pack.

As Christmas season arrives, most folks enter a panic. Gifts Groceries. Trips. New outfits. Decorations The financial demands of the holiday can build up quicker than it takes Santa's sleigh to complete its flight

For parents, it can mean nights of tossing and turning as they wonder how they will afford the toys and food for Christmas dinner For those without children, the worries can span from purchasing plane tickets to buying gifts for mom, dad or significant others. The major concern for many people is, "Will I have enough money to make it through?"

"What gets most people is coming to January and having these whopping bills to pay," says Chip Jordan, president of the Washington, D.C. chapter of the National Association of Black Accountants.

But experts like Jordan say following these easy tips can take some of the stress out of the season and bring back the holiday smiles.

1. START NOW

Try to put away a few dollars each paycheck until you are ready to buy gifts. If you need help, consider joining a Christmas Club with a local bank. But if you hope to cash-in on the interest, financial consultant Lance Withers Slaughter recommends stashing money in short-term bonds or convertible securities.

Slaughter says starting early has many benefits. The father recalls one Christmas when he searched all over toy stores to find a special brown-skinned doll for his 5-year-old daughter. "It was only by the grace of God I got it," says the assistant vice president and final consultant with Merrill Lynch's private client group in Washington, D.C. "But if I had bought the doll three weeks ahead of time, it wouldn't have been a problem."

Along with saving you stress, Slaughter says starting early can also save you high delivery costs. Rather than sending a package at the last minute by Federal Express, send it by UPS and save money, he says.

2. SPEED ONLY WHAT YOU CAN AFFORD

If you can, pay cash, Chip Jordan says. If not, pay off the entire credit cam balance the month it is due. The sooner you pay off the debt, the less anxiety you'll feel.

"You can also use a debit card for Christmas purchases, so there are no bills after Christmas," Slaughter advises "Instead of charging presents and perhaps paying for those gifts from January through June, use a debit card and pay for Christmas once--and only once."

3. COUNT THOSE PENNIES

Start a coin jar and look for gold in the bottom of old purses, pockets or the floor of your car. You'll be surprised how quickly it adds up.

4. BE CREATIVE

Make a scrapbook. Write a poem. Create a coupon book that entitles the recipient to massages, homecooked meals or a month of pampering.

"The gifts that mean the most require the most thought," Slaughter says. "Too many people worry if the present they are giving will fit the person's status or if they've spent enough. You can think of nice gifts without breaking the bank."

5. START A GRAB-BAG

If you have a big family or a huge group of friends, consider drawing names or pooling resources for Christmas presents.

6. TEACH THE VALUE OF MONEY

Use Christmas as a way to teach your children about saving. Encourage them to store part of their allowance or birthday money in a piggy bank and match their deposits. Then they can buy tHeir own gifts with pride.

7. LOOK FOR AFTER-CHRISTMAS SALES

The day after Christmas, don't walk, RUN to the stores. During after-Christmas sales, stores slash prices tremendously. Avoid buying fad gifts. Instead, stockup on the classics that are likely to bring joy during any season.

8. FOCUS ON WHAT CHRISTMAS MEANS

Sometimes there's so much scrambling to buy a better gift or outfit that the real meaning of Christmas is lost. Consider what the holiday means to you and what you want it to mean for your family. Then celebrate that vision with love instead of presents.