Getting into the holiday spirit doesn't have to mean sinking deeper in debt.
Financial counselors on Fort Belvoir recommend that military Families plan ahead to keep their budget while shopping for holiday gifts.
The first thing Families should do before hitting the mall is to create a holiday budget, including a dollar amount and gift ideas for each person, said Erica Drame, Army Community Service Financial Readiness Program manager. Otherwise, they'll probably spend more than they can afford.
"If you don't go into the Commissary with a grocery list, you will end up spending anywhere from $15-35 extra, easily. The same thing goes when you go out shopping and you don't have a set budget on how much you're going to spend or you don't know what you want to get that particular person," Drame said.
Families should also consider other holiday-related purchases when they budget, like additional food, holiday decorations and supplies, said Shannon Tackett, Belvoir Federal Credit Union's financial coach.
"Make sure to think about everything you may need to purchase. Oftentimes, people will host their friends and Family for a holiday dinner and will forget that they need to purchase groceries beyond what they normally budget," she said.
November and December is also the time of year that many military Families take leave to visit relatives and friends, which also affects the budget.
"Airfare, train tickets and even gasoline is expensive when money is tight," Tackett said. "Planning for all expenses associated with the holiday season can help make the holidays less stressful and more enjoyable."
To help with advance planning, Families might want to consider opening a separate bank account specifically for the holidays, which they can deposit into throughout the year, Tackett said. Several banks, including the Belvoir FCU, offer accounts that allow patrons to continue earning interest while they save for a specific goal, like the holidays.
Besides planning and budgeting, another way to avoid going into debt during the holidays is to avoid using credit.
"Use cash instead of credit cards," Drame said. "A lot of times when you have a budget and you know that you have designated $25 per person, if you take the cash out, you're more apt to stay on track."
Sometimes credit cards offer rewards for spending a certain amount of money, but that's not always a good deal, Drame added -- the cards often make up for the freebies with high interest rates.
"Although they might be rolling those deals on top … you're really not saving that much," she said.
Military Families can also save more by looking for deals online, Drame said.
"A lot of times people don't take the time to save the money during Christmas -- they just buy it instantly," she said. "Really take the time to find the best buy for all your purchases."
When shoppers do visit actual stores, it's important that they avoid impulse buys, Tackett said.
"Once you have your list completed, stick to it," she said. "Try and only visit the aisles with the items you need; in other words, do not wander around the store."
Certain smartphone apps, like Red Laser, can help with comparison shopping.
"Red Laser allows you to scan or manually enter a product's bar code and will then give you the best in-store and online prices," Tackett said.
Another option is to make some gifts at home.
"Not only will you save money, but the gifts become more personal and meaningful," Tackett said. "If you cannot afford it, do not buy it."
Families might also consider substituting giving gifts to others in place of buying more.
"I know this is especially hard with children, but remind them of the true meaning of the holidays," Tackett said. "This is a great time to begin speaking with them about helping others in need. Perhaps they might be willing to forgo one of their own gifts so that you can purchase a smaller toy to help other Families in need."
For more information or to set up a financial counseling appointment, contact Drame at erica.f.drame.civ@mail.mil or (703) 805-1833 or Tackett at stackett@belvoirfcu.org or (703) 730-1800, ext. 5155.
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