NEWS RELEASE

Media Contact:
Renee Beauregard 303-400-3456
Whitney Cortner, 720-479-3311, email wcortner@colocu.com

Start Saving Now for the Holidays

By Renée Beauregard, Executive Director, Consumers United Association

Although the summer sun is keeping the temperature quite warm outside, before you know it the winter chill will prompt us to light the fireplace and sip on hot cocoa. With that in mind, the winter holidays are less than five months away and now is the time to start saving with some helpful tips from Consumers United Association (CUA), a nonprofit consumer advocacy association that serves consumers in Colorado.

Planning in advance makes all the difference in your holiday shopping experience. Challenge yourself to make a budget for the holidays that includes gifts, cards, postage, decorations, entertaining and more. To make your budget realistic, create a gift list and determine the amount of money you want to spend on each person. You’ll find that sometimes for a large family, instead of buying individual gifts, purchasing only one gift for the entire family might be more cost effective or for workplace gift-giving, suggest a price limit on gifts exchanged to keep everyone from overspending.

Calculating your budget should also take into account all those extras that tend to inflate your original figure from gift wrapping, to shipping costs. A great rule of thumb to follow is to add $15, plus state and local tax, to the cost of each gift to stay within your budget. In fact, according to research by VISA USA, less than 21 percent of consumers include these extra expenses when planning their holiday shopping.

Another great idea to help you start saving now for the holidays is to redeem your reward points. Oftentimes you can convert your frequent-flyer airline miles into magazine subscriptions, restaurant certificates, or electronics. Plus, credit-card reward programs such as Blue from American Express offer incentives to cash in points earned for retailer gift cards. You might also investigate whether your company offers any perks such as discounts with retail partners that are not restrictive to employee use only.  

But before you gas up the car and head to the mall, consider taking a detour to Costco or SAMS Club. The advantages of buying some of your gifts in bulk can minimize overzealous specialty shopping. For instance, you can stock up on a case of fine wine, gourmet coffee, and imported chocolates and then break them into individual gifts for friends and family instead of paying the high costs charged at boutique shops.

Plus, if you start shopping early before the holiday rush, you could snag a great deal on last year’s model of a particular electronic or clothing item because retailers are trying to make room for the newest item often tagged at outlandish prices. With that said, surfing the web to comparison shop can help you target the best price and retailer.

Amidst the chaos of the holidays, it’s also important to remember that many people are in need so make an effort to lend a helping hand. Plan to participate in a community winter coat drive or gather gently used items to donate to the Goodwill or Salvation Army. Keep in mind that you can earn a 2007 tax deduction on your donation. Be sure to get a receipt from the charity for your donation and take a photo of any expensive items you donate and a list of items donated in case you get audited by the IRS and need proof of your donation.

Another way to start saving now for the holidays is to book your travel arrangements early. Supply and demand can spike the price of airfare during the holiday months. Travel agents suggest booking your travel in advance to take advantage of specials and cheaper seats before they become a hot commodity. It’s also usually more expensive to fly on Fridays and Saturdays than weekdays and so planning your itinerary during the weekdays might save you some money and even the hassle of dealing with hectic weekend crowds.

Dedicated to educating consumers on financial issues, Consumers United Association (CUA), a nonprofit consumer advocacy association that serves consumers in Colorado, aids consumers in the resolution of consumer problems and provides a united voice for consumers in the legislative arena. Membership to CUA is open to Colorado residents who are interested in financial education and advocacy and is only $5 annually and $25 for a lifetime.For more information visit: www.cuacolorado.org.