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Holiday finance for the family
  
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By VAL CLIFTON
Proper planning and forethought are always good measures to take prior to decking the malls, but some experts said including the family can better help all members understand the budgeting process.
Omnibank’s President and CEO of Julie Cripe said sitting down as a group can not only help parents save in certain areas, but give children an understanding of what the family will be able to logically afford this holiday season.
“I suggest at all times, not just during the holidays, that the family sit down together to set a budget and decide what they can spend,” Cripe said. “They should try their best not to use credit and decide, if they do want to buy a big family gift like a big TV, where they could cut in other areas.”
She said the best time to budget for Christmas is at the beginning of the year, putting aside a little bit of money every week so that by the end of the year, the money for gifts will already be available.
Overspending takes the joy out of the holidays if the consumer knows they will still be paying for it a year later, Cripe said.
“I’ve read story after story about families who go out of their way to do these spectacular Christmas presents for everyone,” Cripe said. “But in January, when the bills come in, they’re really depressed. They usually don’t even have it paid off by the next Christmas.”
For large extended families that normally give everyone gifts, she suggested a scaled-down version where members draw the name of the present recipient out of a hat.
Instead of spending their allowance on gifts, children could make coupons for their mothers to redeem for special chores around the house.
“I know a lot of people who would like to have their refrigerator cleaned out as opposed to getting a $10 scarf,” Cripe said.
Bargain hunting as a family can also encourage children to become more conscious of the cost of products and the value of the dollar.
“Keep in mind that the amount of money you spend on someone is not how much you care about them,” Cripe said. “It’s time for everyone to get a little more conservative.”
2008 Holiday Stats
• 51 percent of consumers will start their holiday shopping pre-Thanksgiving or on Black Friday.
• Nearly 60 percent of consumers would dedicate a full day of shopping at the mall to complete their holiday shopping.
• Young adults ages 18-24 represent the largest category of those who shop on Black Friday (64 percent).
• Clothes and electronics are the most popular gifts consumers will buy on Black Friday (60 percent and 64 percent respectively).
• 5 a.m. to 6 a.m. is the “sweet spot” for leaving the home to shop on Black Friday.
• Of those who will shop on Black Friday, nearly 80 percent will participate in Black Friday events, such as early-bird sales and prize giveaways.
• Monday through Thursday is becoming an even more popular time period to complete holiday shopping. Almost 75 percent of consumers do holiday shopping during the week; Fridays and Sundays are the least popular days.
• Like last year, consumers will shop for an average of eight people.
• 66 percent of consumers say their favorite person to shop for is their spouse/significant other or a child.
• Consumers do not want to get into debt this holiday season. Nearly 70 percent plan to use cash/check/debt card for their holiday purchases.
• 56 percent of consumers plan to purchase a gift card during the holidays.
• Man’s best friend is not forgotten during the holidays. Sixty-one percent of consumers will spend anywhere from $10 to $50 on a pet.
• Consumers have big hearts – 84 percent say they would rather give gifts than receive them.
• 50 percent of consumers visit the mall during the holiday to enjoy the holiday décor and festivities.
* General Growth Properties Inc. Consumer Research Department conducted an online survey with more than 3,000 shoppers in August 2008. The survey has a margin of error of + 3 percent.
Omnibank’s President and CEO of Julie Cripe said sitting down as a group can not only help parents save in certain areas, but give children an understanding of what the family will be able to logically afford this holiday season.
“I suggest at all times, not just during the holidays, that the family sit down together to set a budget and decide what they can spend,” Cripe said. “They should try their best not to use credit and decide, if they do want to buy a big family gift like a big TV, where they could cut in other areas.”
She said the best time to budget for Christmas is at the beginning of the year, putting aside a little bit of money every week so that by the end of the year, the money for gifts will already be available.
Overspending takes the joy out of the holidays if the consumer knows they will still be paying for it a year later, Cripe said.
“I’ve read story after story about families who go out of their way to do these spectacular Christmas presents for everyone,” Cripe said. “But in January, when the bills come in, they’re really depressed. They usually don’t even have it paid off by the next Christmas.”
For large extended families that normally give everyone gifts, she suggested a scaled-down version where members draw the name of the present recipient out of a hat.
Instead of spending their allowance on gifts, children could make coupons for their mothers to redeem for special chores around the house.
“I know a lot of people who would like to have their refrigerator cleaned out as opposed to getting a $10 scarf,” Cripe said.
Bargain hunting as a family can also encourage children to become more conscious of the cost of products and the value of the dollar.
“Keep in mind that the amount of money you spend on someone is not how much you care about them,” Cripe said. “It’s time for everyone to get a little more conservative.”
2008 Holiday Stats
• 51 percent of consumers will start their holiday shopping pre-Thanksgiving or on Black Friday.
• Nearly 60 percent of consumers would dedicate a full day of shopping at the mall to complete their holiday shopping.
• Young adults ages 18-24 represent the largest category of those who shop on Black Friday (64 percent).
• Clothes and electronics are the most popular gifts consumers will buy on Black Friday (60 percent and 64 percent respectively).
• 5 a.m. to 6 a.m. is the “sweet spot” for leaving the home to shop on Black Friday.
• Of those who will shop on Black Friday, nearly 80 percent will participate in Black Friday events, such as early-bird sales and prize giveaways.
• Monday through Thursday is becoming an even more popular time period to complete holiday shopping. Almost 75 percent of consumers do holiday shopping during the week; Fridays and Sundays are the least popular days.
• Like last year, consumers will shop for an average of eight people.
• 66 percent of consumers say their favorite person to shop for is their spouse/significant other or a child.
• Consumers do not want to get into debt this holiday season. Nearly 70 percent plan to use cash/check/debt card for their holiday purchases.
• 56 percent of consumers plan to purchase a gift card during the holidays.
• Man’s best friend is not forgotten during the holidays. Sixty-one percent of consumers will spend anywhere from $10 to $50 on a pet.
• Consumers have big hearts – 84 percent say they would rather give gifts than receive them.
• 50 percent of consumers visit the mall during the holiday to enjoy the holiday décor and festivities.
* General Growth Properties Inc. Consumer Research Department conducted an online survey with more than 3,000 shoppers in August 2008. The survey has a margin of error of + 3 percent.
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