Tip of the Month

November 2008

Holiday Spending Tips

With the holidays, and black Friday, only weeks away, it is a good time to plan out your Holiday spending so that you don’t end up being a compulsive spender or end up with credit card debt you can’t handle.

Tips for Holiday spending:

1. Make Budget, and a List: Decide how much you can afford to spend and stay within that budget. Staying within budget will be much easier if you make a price list of all gifts and other holiday items you plan to purchase. It's easy to overlook extra expenses for holiday foods, party clothes, holiday décor and postage.
2. Comparison Shop: You can easily save more than 10 percent on most items, sometimes considerably more, by comparing prices at different stores. You can also use the Internet and compare offers online.
3. Pay Off Debts Quickly: You're less likely to overdo it if you pay in cash. If you must make holiday purchases using credit, use a lower-interest card, and pay off this debt as soon as possible early next year. Check out Service 1 FCU’s low-interest Visa.
4. Plan for Next Year by Opening a Christmas Club Account: These accounts provide a practical way to save small amounts over time. Service 1 can automatically transfer funds from your checking to your Christmas Club account every month.
5. Be Smart About Gift Cards: If you give or receive a gift card, read the fine print. There may be a fee for checking your balance as well as a monthly inactivity, maintenance, administrative, or service fee.
6. Pay Attention to Return Policies: Some stores are tightening their policies. Pay attention to the return policy when you make a purchase; keep receipts and note time limits, restocking fees, and other factors that may affect your recipient.