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Be financially frugal for holiday spending

  • Published
  • By Airman 1st Class Andrea Posey
  • 1st Special Operations Wing Public Affairs
HURLBURT FIELD Fla.-- --  The holidays are fast approaching, and for many this may lead to overspending, a common occurrence for Airmen here, according to Tom Snyder, accredited financial counselor at Hurlburt Field's Airman Family Readiness Center.

The average family charges around $1,500 on credit cards during this time, said Snyder.

"Consider the following: if your credit card company charges a 14-percent interest rate and you pay only the minimum amount each month, it will take you eight years and cost over $1,000 in interest to pay it off," Snyder said.

Using some of the following tips from Snyder can help Airmen to avoid overspending so they can enjoy the holidays without debt.

· Join a "Christmas Club:" Many banks have special savings accounts where a person contributes monthly allotments to put towards saving for the holidays.

· Plan holiday spending: Create a written plan with spending limits for each gift, or draw names with friends and family and only buy a gift for one person.

· Avoid shipping charges: Plan for an additional $10 for gifts bought online to cover shipping costs so you don't exceed your spending limit. Watch for specials that offer free shipping, or buy a gift card instead.

· Shop year-end sales: Shop after-Christmas deals and put the gift away for next year.

· Portion the holidays: Gift purchases should be portioned by what can be afforded, by cash, check or debit card not what someone buys by using credit.

· Consider layaway: Many stores offer layaway plans with little to no fees. Put gifts on layaway three to four months ahead to make payments over time instead of all at one time. Always make payments on time.

· Personalize the holidays: Put thought into your gifts and consider making something instead of buying. Gifts like baked goods, handmade ornaments or pictures in nice frames give gifts a personal touch.

Some Airmen already follow these tips. Airman 1st Class Mathew Tippens, 1st Special Operations Emanations Maintenance Squadron custodian account manager, is trying to be better about saving; he has car and insurance payments each month.

"I've been trying to buy gifts throughout the year," Tippens said. "I always try to start working on Christmas at the beginning of the year, so that by the time Christmas comes around I'm not rushing around."

Tippens is also shopping year-end sales to buy clearance games for his younger siblings, because it will save him money and they can still enjoy the gifts.

"The holidays are a time to enjoy," said Snyder. "You will get much more enjoyment knowing you won't be haunted by bills long after the festivities."

For more information on financial managment contact Tom Snyder at 884-5441.