Experts offer holiday budget tips

By GUY PRIEL

Journal Staff Writer

NEW ULM -- As the busiest shopping season of the year enters its second weekend, many consumers will be realizing they are in a financial bind and should have planned ahead.

"Christmas is always a time for people to see where they are financially," Certified Credit Counselor Julie Zachariason of Mankato said. She works for Consumer Credit Counseling Service, a division of Lutheran Social Services.

"It is appropriate for consumers to make a list of things they need in advance, rather than just running in and buying things," she said. "Ideally it is better to plan early."

People who make appointments for credit counseling after the holidays often do so because the bills have started coming in and they have begun to realize they overspent, she said.

"It is never too late to set limits on spending, even this close to Christmas," she said. "By starting early consumers can take advantage of sales and specials. People spend less when they aren't rushed."

Before rushing out to the stores, consumers should make a budget. This will allow them to set limits on what gifts to buy and how much to spend, Zachariason said.

"Sometimes it is easier to ask people what they want to get ideas of what to buy," she said. "That prevents spending too much on unwanted items that may wind up being returned later."

It is always a good idea for consumers to call retailers if they have specific gifts in mind to make sure it is stock. This saves time and energy. It is also better to shop earlier in the week or earlier in the day, she said.

"Consumers should always keep receipts in case an item needs to be returned or exchanged," Zachariason said. "Consumers should set aside cash instead of relying on credit cards. Use of credit cards can get away from you too fast. It is easier to overspend when you don't actually see cash being used."

Keeping receipts can also help consumers compare their spending plan with the actual amount spent on items, she said.

"Another idea is to be creative with gift giving, rather than just buying something," she said. "People should consider hand-made gifts, or create personal gift coupons. Use old Christmas cards for gifts tags and comic sections for wrapping paper. This can save a little bit of money as well."

One idea people could consider for the holidays is making a theme basket, such as a gift for teens filled with movie coupons, popcorn and candy to provide a free evening of entertainment at home.

"People could also consider a canned food drive for an office party rather than a gift exchange," Zachariason said. "This helps people share the giving experience with those less fortunate."

Pooling resources is a good way for a family to help keep the spirit of the holiday alive, as well. It is the time and thoughtfulness, rather than the gifts, that help create holiday memories.

Consumer Credit Counseling Service is available to provide guidance to consumers when the bills start rolling in , regardless of a person's financial situation.

"We can help build a spending plan and help consumers set goals that will help develop ways to reduce debt," Zachariason said. "You don't have to be in financial trouble to take advantage of our services. It is important to know where you are financially."

Counselors are available to answer phone questions and can make appointments for office visits in Mankato or New Ulm. Services range from budget tips, money management and debt arrangement to housing counseling and educational programs to help consumers become better money managers. They also help consumers compare credit card offers to help them find the best offer.

"It helps residents when they have local access to people who have their best interest at heart," Zachariason said. "Community support says a lot for a service."

Counselors are available on Mondays at the Brown County Services Building. Appointments can be made by calling 1-888-577-2227.

"We work with every age and economic level," Zachariason said. "We don't tell people how to spend their money, just how to make informed decisions."