Holiday Shopping Tips

The holidays are an exciting time, but they can also be an expensive one. Many people have tightened their belts during the last year because of the troubled economy, but that doesn’t mean you have to miss the joy of giving presents to loved ones or indulging in the celebrations. The New Jersey Society of Certified Public Accountants (NJSCPA) advises that there are some smart steps you can take to ensure that you are a savvy shopper, even during what can be a costly time of year:

Make a List … and a Budget
Bring a shopping list with you when you go to a store, whether you’re purchasing groceries or going to the mall. You’re less likely to make impulse purchases when you have a clear shopping agenda in mind. But before you start that list, first prepare a budget that spells out how much money you can realistically afford to spend on holiday gifts. Then decide what you plan to spend on each person on your list.

Consider the Extras
As part of the budgeting and list-making process, include the cost of wrapping paper, mailing, decorations, holiday cards, holiday meals and any other expenses associated with the holiday season. That way, you won’t face any unwelcome surprises.

Monitor Your Spending
A budget and a shopping list are great tools, but also keep a record of how much you are actually spending as you go, to see that you are not exceeding your budget or buying more than you intended.

Take Advantage of Sales
Many retailers have sales at this time of year, so it’s a good idea to shop around and determine who has the best price. A low price does not always mean a good value, however. Compare prices at several different retailers because a sale item at one store may still cost more than the same merchandise at another shop. If you know you can get a better deal elsewhere, see if the retailer will match or beat the lower price. Remember, a purchase is not really a bargain if it isn’t truly what you need or doesn’t suit the person receiving the gift. Keep your receipts in case a return is necessary, and ask for gift receipts so recipients can exchange a present that isn’t right for them.

Watch Your Wallet
All your careful planning may not matter if you fall victim to a crime. And that’s quite possible at this time of year, because the holiday shopping rush tends to attract pickpockets and other thieves intent on separating you from your money or valuables. Store your wallet in a secure place that would be difficult for a pickpocket to access, and hold on to it when you make a transaction. Get your credit or debit card back from the salesperson after every purchase. And don’t leave your packages unattended when you’re buying something, as they may disappear while you’re distracted.

Turn to Your CPA
Prudent spending at the holidays is one of many smart steps you can take to make the most of your money. If you want to learn more ways to spend wisely, remember that your local CPA can help. He or she can answer any of your questions about financial issues facing your family.

If you don’t have a CPA, you can easily locate one online using the NJSCPA’s free, online Find-A-CPA service. Just go to www.findacpa.org, and in a few clicks you can locate a highly qualified professional who can assist you.




Produced in cooperation with the AICPA
©2009 The American Institute of Certified Public Accountants

December 1, 2009