News You Can Use

Don’t be Scrooge, but spend responsibly during the holidays

University Relations
News Bureau (662) 325-3442
Contact: Abby Barber
Dec. 9, 2002

STARKVILLE, Miss.--With the Christmas countdown under way and shoppers frantically storming the stores in search of the “perfect gift,” seasonal panic can lead to overspending.

According to Mississippi State University finance professor Wayne Kelly, “It is very easy to start ‘buying down’ panic by using a credit card.”

Using credit cards is OK “unless you plan to only pay the minimum monthly balance.” Hasty purchasers who charge excessively but can only afford the minimum required balance “often end up in debt for a very long time at a relatively expensive interest rate,” he adds.

To avoid going overboard on holiday gift spending, Kelly offers several tips:

--Set both an overall spending limit and a deadline for paying all bills after the holiday;

--Avoid splurging by making specific gift targets to stay within a budget;

--When purchasing for big families, consider such steps as drawing names or limiting the number of gifts per person;

--Remember that the thought counts most in gift giving--consider quality and variety over cost; and

--Start early before the holiday rush to be able to get more for the money you spend.

If it’s too late for that last tip, begin planning now for next year to have the time necessary for comparing prices or reconsidering particular gifts.