The final days of the holiday season offer constant temptation to overdo it. Whether it's gifts, decorations, food or drink, there seems to be a constant pressure to spend at year-end that can trip up the best of budgets.
If this sounds like you, you're not alone.
In mid-November 2015, investment firm T. Rowe Price reported in its annual "Parents, Kids & Money" survey that 62 percent of parents said they spent more for their kids over the holidays than they should have while only 36 percent said they save for the holidays throughout the year.
Certainly it helps to plan weeks and months in advance for year-end holiday shopping, making lists and budgets and setting money aside throughout the year to cover expenses well in advance of the holiday. Keeping a sharp eye on discounts, coupons and transportation and delivery costs also matter throughout the season. But how can you stay on budget when last-minute events, household or gift needs threaten to push you above planned spending?
Here are some ideas:
Track every dime. If you're close to your budgeted holiday spending amount and still have a list of items to buy, it's time to figure out what the overspending cause is and if there's a last-minute solution. Maybe you and your partner or spouse are shopping independently, spending too much on gas, meals out or failing to coordinate on the items you need. Maybe the kids are adding items to their lists at the last minute. It's toughest to say no to kids, so see if there are adult gifts, decorating items or seasonal specialty food you really don't need to purchase. In other words, if your budget is tight, identify the expenses you can alter and adjust your spending plans.
Negotiate what's necessary. Do the adults all need a present this year? Is there a reason why books, toys or technology for adults or kids have to be bought brand new? Do you have to fund the entire family dinner this year or can you put out a last-minute request for potluck? Many online retailers now offer opportunities for "like new" and refurbished items that can save considerable money on gifts -- if safety isn't a factor and an item looks, works and feels like its brand new counterpart, maybe it's time for a last-minute substitution.
Save receipts and don't ignore the cost of returns. Some retailers are strict about return policies on a host of items, which means it is important to check return policies before you buy. Save every receipt on physical purchases and if you're giving gift cards, make sure the recipient has the purchase receipt in case the card doesn't work. If you've bought items online, make sure you keep critical return information and package return stickers in case you need them. But on returns you have to ship back, take one additional step -- see if the seller is charging you more for their convenient shipping label than what it would cost to mail the item back yourself. Finally, keep restocking fees in mind -- some retailers charge more than 10 percent of the item's cost to accept a return. This is particularly true for electronic and mechanical purchases that involve heavy packaging the retailer has to restore before resale. Finally, if you have to return items at the store, the post office or a shipping location, consolidate those trips to save time, gas and money.
Fight the impulse buy. Yes, maybe some of the outdoor lights will need to be replaced next year or you decide you can always use another massive serving platter. The point is, holiday discounts -- whether on Black Friday or throughout the season -- are rarely worth the price of grabbing items that aren't on your list in the first place. If you never really needed or wanted it in the first place, don't let a "50% off" sign change your mind.
"Piggyback" the purchases of others. If you have a large gift list for loved ones or family, be a nosy shopper. Maybe your sister is finally giving her movie freak husband the room-sized flatscreen he's always wanted. Maybe your nieces and nephews are getting expensive dolls, toys or technology items that require clothes or software of some sort. If you are trying to cut your holiday budget, check in with loved ones to see if you can supplement these expensive gifts with accessories that might be easier on your budget and appreciated just as much. Pitching in for a couple of outfits for the expensive doll -- rather than having to buy the expensive doll itself -- saves you money, gives your loved ones a break on the subsequent purchases they'll need to make and the recipient gets more of what he or she wants. A win-win all around.
Watch out for theft. All the smart shopping in the world won't lessen the headaches from thieves who target your packages, personal and online data or the contents of your wallet. Fast-approaching holidays and busy schedules can leave us tired and distracted, so keep a close watch on potential risk for identity theft, package theft from cars, homes and apartment vestibules. If you take public transportation, use extra caution to keep your money, purchases and personal technology hidden from thieves.
Bottom line: Expecting a busy and fun holiday season? Don't let the last-minute rush blow your budget or threaten your finances in other ways. Nathaniel Sillin directs Visa's financial education programs. To follow Practical Money Skills on Twitter: www.twitter.com/PracticalMoney
This article is intended to provide general information and should not be considered legal, tax or financial advice. It's always a good idea to consult a legal, tax or financial advisor for specific information on how certain laws apply to you and about your individual financial situation.