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Set a Plan for Gift Giving by Sarah Catherine Gutierrez

I want you to make a financial plan for holiday gift-giving.

I'm writing to the sound of Christmas music blaring like a siren call from every store, jingle bells ringing off websites, all telling us to come out and spend or fire up the laptop, credit card in hand. That's right, the upcoming holidays are upon us! Today, and maybe only today, you can find motivation to take one, two, three or all four of the actions below.

First, open another savings account. Go to your bank and sign the paperwork for the new account (it's free!). Call it a gift account or holiday or Christmas account, whatever makes sense. I bet you didn't even know you could name your savings accounts. Then, fund it! How much? Pull up all those credit card statements from November and December and birthdays and anniversaries from last year and add up the total. Divide that number by 12, then set up a monthly auto transfer from your checking account to your new savings account for that exact amount. You won't have enough for this year. Those little magic money fairies you've heard so much about do not really exist, but by next year you will have enough money saved to make your gifting seem even more miraculous than Santa slipping down a chimney. Make sure that once you are spending, you don’t go over the amount in the account. Once it’s gone, it’s gone!

Second, you have one fleeting moment in your entire life to call off gifts, and this year is it. Literally pick up the phone and call the authoritarian family regime and negotiate a settlement. Argument A "budget." There, you said it. And remember that life has gotten more expensive for people at many income levels. Many will benefit from the settlement you negotiate. A lot of people I have met over the years have replaced gift-buying with more intimate gift-giving, such as experiences (like picnics, dinners out, theater tickets), a thoughtful letter or a homemade banana bread. These gifts go a long way. Also, remember that you can still bid on experiences and gifts at charitable auctions. All from the comfort of your couch!

Third, if you have young children, run (don't walk) to your computer and furiously pull up the Arkansas 529 website and open up a college account for each of your children, or at least the ones you like! Google tuition rates, and you will agree it takes a financial village to raise a child. Set the account up today and call every family member who adores your kids and who spoils them with an abundance of plastic toys that make loud sounds and end up on the floor where you painfully find them in the middle of the night. Suggest to these benefactors that they consider an alternative gift -- the gift of education. They can deposit directly into the account or have a nice, wrapped-up check ready to mail the next day.

Fourth, and what I will be doing today, is making myself a gift budget with a plan to buy each gift locally. I know that making a budget means I am less likely to overspend, and by starting early I prevent the reptilian part of my brain from bursting into flames and prompting me to overbuy in the final days.

What else can you do to save this holiday season?