Have a penny-wise holiday

Wrap up peace of mind with careful spending

Janet Simons, Rocky Mountain News

Monday, December 12, 2005

"When the money runs out, everyone's first impulse is to put everything on credit cards and be done with it," said Mary Hunt, founder and editor of Debt-Proof Living, debtproofliving.com, in Paramount, Calif. "Instead, it's time to take a really, really deep breath - or you'll kick yourself come Dec. 26."

Turning things around involves much more than trimming the tree with homemade cranberry strings instead of crystal ornaments. It also involves a change of outlook. You'll enjoy the holidays more if you stop focusing on buying things and concentrate instead on what really matters at this season - your friends and family. We asked Hunt and our readers for their tips on getting through the holidays without going into debt, and they were generous with their advice. Here's a distillation of their suggestions. Now put those credit cards away!

Decorations

• Most people accumulate holiday decorations throughout their lives, so be sure to store them in an accessible place and go through them before buying anything new. As soon as you've decorated, make note of what you'd still like to have. Then wait until after the holidays to stock up at half-price. It's a particularly good time to get plates, napkins and tablecloths in holiday themes and colors.

• Wrap gifts in comics pages, old maps or aluminum foil. Children can make charming wrapping paper out of brown mailing paper decorated with stickers, rubber-stamp imprints or hand-drawn pictures.

• Instead of wrapping gifts, put them in baskets or even old handbags that you've saved or bought cheaply at garage sales or thrift stores. A sparkly scarf in an evening bag makes a dramatic gift.

Gifts

• Make a certificate or coupon book for a gift of time. New parents usually appreciate an offer to baby-sit. If you can afford it, add movie tickets or a restaurant certificate to your gift. If you can't, give a certificate for a movie rental and take the kids for an outing. Other possible coupons could promise computer lessons, window washing, game-playing time, snow shoveling, yardwork, grocery shopping, a home-cooked meal, a back rub, a manicure - use your imagination.

• Shop year-round for gifts. Not only does this spread out the cost, but it offers the opportunity to shop sales, closeouts and even garage sales, where you can often find brand-new items in the original packaging. Put all the gifts in one place, and keep a stash of wrapping paper and cards with them.

• If you have a big family, have everyone make out a list of what he'd like to receive. You might want to suggest keeping it within a specific price range or category (such as media). Get the family together, put the lists into a big bowl and have each person draw one. Each person then buys one gift off the list and, in turn, will receive one gift.

• Tell each child that he or she will receive only three gifts from Mom and Dad: something to read, something to play with and something to wear.

• Children also give gifts. Scan your children's artwork from school onto blank notecards - Grandma will love them. Visit a crafts store with your children and look for ideas, including tumblers, mugs or pottery they can decorate. Set a budget before you go.

• Teenagers and young adults would probably enjoy downloading music to customize CDs with the favorite music of each recipient. A side benefit is that people learn a lot about each other as they research music preferences. Just make sure everyone is downloading legally.

• A gift certificate for a session with a financial planner can help a new householder get off on the right foot or help any recipient develop a spending plan to get through the year and future holiday seasons.

• Older people probably have enough "stuff" and would appreciate something consumable. If you're not into making candy or cookies, buy a big bag of almonds at a warehouse store and divide them into small gift bags.

• Instead of leaving specific items in a will, older relatives might want to make gifts of heirlooms they know will be treasured. Include a note telling the story of the item.

• Copy old family photos on a color copier (this looks good even for antique sepia photos) and put them in a scrapbook with some history. Copy favorite recipes and present them in a bound volume or scrapbook. Again, include the story. Copy shops, scrapbooking outlets, software programs and Internet sites can help you turn photos and documents into books.

Inexpensive holiday ideas

• Choose one decorating focus, such as snowflakes, stars, gold balls or angels, and one fabric pattern. For example, use matching fabric and pine cones for the tabletop, the mantel and a wreath for the door. Matching linens, place mats or runners can add holiday flair to tables. Wind or tie fabric to decorate chairs, doors, banisters and plant pots.

• Raid your yard for greenery from evergreen bushes and trees. Using gold spray paint, paint the greenery, holly berries, artichokes, gourds, small pumpkins and other fruits and vegetables and arrange everything for a centerpiece.

• Embellish large canning jars with greenery, berry sprigs, white silk roses, white satin bows, ribbon or raffia and arrange perhaps 12 of them down the center of the table. It makes a bigger impression if you use a lot.

• Make one of your parties an ornament exchange.

Entertaining

• If you're going to have houseguests, plan inexpensive physical activities such as ice-skating, sledding, snowshoeing or playing touch football. Instead of getting flatlanders all fitted out for their first ski expedition, take them tubing.

• While you've got everyone under the same roof, create a family tradition of going caroling or setting up an assembly line to make holiday food.

• Use ginger-, cinnamon- or peppermint-scented candles or simmering potpourri to create a festive mood for parties.

• Instead of wearing yourself out making a huge family dinner, assign each family member a dish. People are usually happy to contribute to make things easier for the host.

• Instead of a dinner party, have an hors d'oeuvres party. Be sure to include raw vegetables and dip for dieters.

• Have each guest bring an appetizer and provide beer, wine and soft drinks.