Spend less, enjoy holidays more: Americans plan to slash holiday spending; that needn't dampen holiday spirit

Nov 23, 2008 (Albany Times Union - McClatchy-Tribune Information Services via COMTEX) -- WSM | Quote | Chart | News | PowerRating -- This year, Americans intend to spend less during the holiday season startlingly, strikingly less.

U.S. shoppers say they are planning to spend an average of $431 for gifts, down from the $859 they planned to spend last year, according to the annual American Research Group survey. That's a drop of nearly 50 percent from 2007 and the lowest planned spending recorded by the American Research Group since 1991.

It's a different economic environment now, the air befouled by bankruptcies, federal bailouts, uncertainty and fear. Obtaining the latest gizmos and doodads seems less important when unemployment statistics and job prospects are so grim. But in these challenging times, there's also opportunity.

As Jean Akin of Schaghticoke wrote in an e-mail: "We won't have as many strings of lights out on the porch, though we'll have as many as we can. We won't be turning up the heat as much, but donning sweaters and heavier socks, and throwing extra blankets on the beds. The turkey might be a little smaller for Thanksgiving, the roast a little smaller for Christmas, but we will be together."

In that spirit, some tips gleaned from Times Union readers, holiday shoppers at a local mall and the Web site www.betterbudgeting.com on how to spend less and enjoy the holidays more:

Ask people what gifts they'd like

The element of surprise can be fun, but it's only fun when someone receives a gift they like. By asking people for their holiday wish list, you ensure a gift will be used.

Give gift certificates for consumable and practical items

People will use and appreciate gift certificates for groceries, gas, cellphone minutes and restaurants. That's what Kathleen Claydon, a kennel worker at Shaker Veterinary Hospital, and her friends are giving. "They don't need more stuff," Claydon said. "I'm paying more attention to where I'm buying for them. I love the Pottery Barn, but (my friends) don't need another set of candlesticks."

Instead of buying gifts for work friends, bake for them (if you're a decent baker).

They'll appreciate the gesture; you'll appreciate the savings.

Focus on people, not stuff

When's the last time your family went caroling? Or played an old-fashioned board game? Or invited friends for a potluck dinner? This could be an opportunity to do those things once again.

Shop online

At the very least, compare prices online, and if you do buy online, you'll save transportation costs.

Don't buy what you can't afford

To some of us, this seems obvious, like not trying to strike a match against the side of a propane tank, and yet every year people charge gifts cavalierly, as if they're impervious to the press of credit card debt. And whatever you do, don't try to refinance your home or take out a loan to buy gifts. You deserve the gift of financial independence.

Only buy for the children

If you travel any distance to be with family, consider that your gift. Or have the adults play Secret Santa or Yankee Swap.

Limit kids' wish lists to three items

For families that celebrate Christmas, limit a child's wish list to three items, explaining that Christmas is the celebration of Jesus' birthday and he received only three gifts: gold, frankincense and myrrh.

Take the family shopping the day after Christmas

This breaks with one of our most time-honored, beloved traditions. Whoever heard of waking up Christmas morning and finding only pine needles lining the tree skirt? But for those willing to think outside the gift box, substantial savings and better gifts than one might otherwise be able to afford can be had.

Consider alternatives to the Cineplex

Many people like to take in a movie the day after Christmas, but if you rent a movie or borrow one from the library to watch that day, and microwave your own popcorn, a family of four can save about $40.

See the Capital Holiday Lights in the Park Display

From Nov. 28 through Jan. 2, for $15 per carload your family can enjoy a delightful Albany holiday experience that benefits the Albany Police Athletic League. And this year free amusement rides have been added at the Lake House, where children can also visit Santa Claus.

Brian Ettkin can be reached at 454-5457 or by e-mail at bettkin@timesunion.com.

Dr. Leslie Seppinni, a Beverly Hills marriage/family therapist, offers these tips for talking to your kids about the financial crisis:

Be honest. Kids are terrific investigators they will listen to your conversations, go through your stuff, question you and challenge you if they believe you are not telling them the truth.

Let them know that whether you have money or need to rebuild, nothing will change in how you feel about them. Money or lack thereof cannot break the family bond. Your family can and will overcome any crisis.

Let them know this is difficult for you too, in other words, giving up some of your favorite things. Share with them that you are empathetic.

Reach out to others. As a family, participate in serving the needy. Let children know they may not get the new iPod, a new car or a trip with their friends, but they will have what they need: clothes, food and shelter. Helping others can put in perspective how much better you have it than you think.

If your family is spiritual, this is a good time to pray together, go to church or temple together and talk to other families who are in a similar situation. Let the kids know your family is not the only one.

Read the paper with them, watch the news with them and talk to them about their fears and concerns. Don't wait for them to come to you. If your kid is in that teenage stage where they don't want to talk, create a secret journal or e-mail with them in which they can share their fears or concerns without feeling judged. You write back but use this as a place to work on their concerns together.

Remind them that their most important job is to finish school. It is your job to figure out the rest. This helps relieve them from feeling guilty that they cannot do more to help.

If your child has been spoiled, use it as an opportunity to take responsibility for spoiling them and recognize that it is an even better opportunity for them to grow by learning to pay for their own car insurance, cellphone or other high-priced items.

Let them know that although there is a financial crisis, you are still optimistic and have faith that everything will work out for the best, especially if you have to move them from their school or neighborhood.

Year Average Planned Spending Percent Change From Previous Year

2008 $431 -- 50%

2007 $859 -- 5%

2006 $907 -- 4%

2005 $942 -- 6%

2004 $1,004 + 3%

2003 $976 -- 6%

2002 $1,037 -1%

2001 $1,052 + 9%

2000 $968 + 3%

1999 $939 + 1%

1998 $928 + 34%

In telephone interviews with a nationwide random sample of 1,100 adults conducted Nov. 10-13, 2008

American Research Group

Helping kids understand

Dr. Leslie Seppinni, a Beverly Hills marriage/family therapist, offers these tips for talking to your kids about the financial crisis:

Be honest. Kids are terrific investigators they will listen to your conversations, go through your stuff, question you and challenge you if they believe you are not telling them the truth.

Let them know that whether you have money or need to rebuild, nothing will change in how you feel about them. Money or lack thereof cannot break the family bond. Your family can and will overcome any crisis.

Let them know this is difficult for you too, in other words, giving up some of your favorite things. Share with them that you are empathetic.

Reach out to others. As a family, participate in serving the needy. Let children know they may not get the new iPod, a new car or a trip with their friends, but they will have what they need: clothes, food and shelter. Helping others can put in perspective how much better you have it than you think.

If your family is spiritual, this is a good time to pray together, go to church or temple together and talk to other families who are in a similar situation. Let the kids know your family is not the only one.

Read the paper with them, watch the news with them and talk to them about their fears and concerns. Don't wait for them to come to you. If your kid is in that teenage stage where they don't want to talk, create a secret journal or e-mail with them in which they can share their fears or concerns without feeling judged. You write back but use this as a place to work on their concerns together.

Remind them that their most important job is to finish school. It is your job to figure out the rest. This helps relieve them from feeling guilty that they cannot do more to help.

If your child has been spoiled, use it as an opportunity to take responsibility for spoiling them and recognize that it is an even better opportunity for them to grow by learning to pay for their own car insurance, cellphone or other high-priced items.

Let them know that although there is a financial crisis, you are still optimistic and have faith that everything will work out for the best, especially if you have to move them from their school or neighborhood.

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