Toys. Decorations. Gifts. More than any other time of year, holiday spending can leave us feeling trapped—and strapped. Consider these statistics:
Americans plan to spend over $1,000 (on average) for gifts during the holidays.
It takes an average of four to six months for a credit card user to pay off holiday bills.

Most of us would welcome less emphasis on gift-giving—a return to spending time with friends and family, rather than more money on them. So how can we put the brakes on holiday spending, and arrive in the New Year without the baggage of debt?

First, set a limit for your holiday spending. A budget of 1% of your yearly income is reasonable. If that feels too restrictive, at least limit expenditures to what you can afford without the use of credit cards. You may want to talk to family members ahead of time if this new budget represents a significant departure from previous holidays. Focus on your desire to add meaning and more time to your celebrations.

Next, take inventory of your holiday supplies: decorations, gifts purchased during the year, wrapping paper, gift bags, and tags. Evaluate what you already have, and make a list of what is still needed. Consider ways to save when putting together your "to buy" list. With preschoolers at home, do you really need a six-foot tree, or would a smaller tree set on a table (out of the reach of tiny hands) be more practical? Be creative with your gift list. Make up a theme basket of gifts for a family to share instead of individual presents—a video or DVD, microwave popcorn, and drinks, for example.

Here are nine more ideas to help you simplify your holiday spending, and save:

[1] Stay within your budget by setting a dollar amount for each person on your list and sticking to it. [2] When you see a gift for someone who is not on the list, don’t buy it on impulse. Wait until after you’ve gone out to your car and then decide if the purchase is worth going back for. [3] Plan ahead so you can mail presents early and avoid last-minute (higher) postage costs. [4] Make good on your promise to spend more time with your children by using some of the money set aside for toys on a family holiday outing instead. [5] Perform a service for friends and neighbors instead of buying a gift. [6] Split the cost of a large or special present between several family members. [7] Order a subscription to something that can be enjoyed throughout the year. Award-winning magazines are available even for preschoolers. [8] Give a gift certificate. If used at an after-Christmas sale, the recipient can pick out the perfect present, and get much more for their money. [9] Listen to Christmas music, read and tell stories that remind your family, and you, of the deeper reason that we give gifts and celebrate during this season.

Cindy Sumner/ www.mops.org
Cindy Sumner is the Contributing Editor for MOMSense Magazine and the author of two books – Time Out for Mom… Aaahh Moments and Planes, Trains, and Automobiles… for Kids. She also utilizes her MBA and work experience in banking and accounting as a member of the Board of Directors of her local bank. Cindy lives in Sheldon, Illinois, with her husband John and their three children.