The Bottom Line
By Susan L. Smith,
Director of Training & Financial Education

Meet Susan L. Smith:

An update from the National Retail Federation (NRF) indicates the average consumer plans to spend $832.36 on holiday gifts in 2008. That is up from $816.69 in 2007. 72% of consumers do all their holiday shopping in the month of December.

December is here again and the shopping list is still waiting. Being creative instead of expensive is a good rule to follow. Many mail order houses are offering free shipping to get your business this year. Using catalogues or shopping online keeps you out of the mall and cuts down on impulse spending. Resist the urge to buy for yourself. That will help control the amount you spend.

Once again, gift cards will be the gift of choice. A gift card is the most requested gift and is the most convenient for the giver. Please do your homework and research the gift cards you plan to buy. Beware of service fees, expiration dates, declining value, stolen account numbers and online scams.

You should know the difference between a store-issued gift card and a bank-issued gift card. According the NRF, the nation's 25 largest retailers do not have expiration dates and 84% of them have no fees. Gift cards issued by banks, malls and credit card companies are more likely to add expiration dates and maintenance fees.

One problem for gift cards is the receiver puts the card in their wallet and forgets to spend it. Or the card is purchased from a store not normally visited by the receiver. My research indicates approximately $8 billion is lost annually through unredeemed gift cards. Some states require the money be sent to the state treasury (escheat laws) but others allow retailers to void the card after 12 to 24 months.

If you have a freeze on gift giving for this holiday season, please don't feel badly about it. Prepare small inexpensive packages for those close to you and add to it by giving of yourself. Family and friends understand financial difficulty and have probably experienced it themselves.

If you didn't get an early start on your shopping this year, make a resolution to do better next year. Make your list, start in July and buy wisely. Remember, December can be all yours if you plan ahead.

Happy Holidays!

Susan L. Smith, Director of Training & Financial Education of Consumer Credit Counseling Service of Greater Dallas. You may email her at TheBottomLine@cccs.net.