Smart holiday shopping in troubled times
By Jeremiah


October 09, 2008
Photo by iboy_daniel, shared via
Flickr.
As we head into the holiday shopping season and a recession that may well turn into a depression, it is more important than ever that we spend consciously. Here are a few tips to help your family get through the holidays in a safe and financially sustainable way.
Be a savvy consumer
Ignore the term "sale" and examine the offered price of a product as though it were the normal price. Is that price worth paying? Many products are overpriced, and use sales to bring their stratospheric retail prices down to Earth; having them temporarily offered at realistic prices doesn't automatically mean they're worth your dollars!
Coupons are generally offered by companies that sell products which are distinguished from their competition primarily by a premium name-brand. The name brand is premium because it is marketed heavily. Marketing is expensive, and is reflected in the price. Coupons help make these prices temporarily competitive with lower-priced brands that do less marketing. While coupons can offer real rewards if used in a programmatic and well-informed manner, allowing them to drive your purchases in a sporadic manner often means paying more in the long run, as companies are working to establish brand loyalty with consumers who would otherwise shun their premium prices. If it didn't work, they wouldn't do it!
Better deals are steep discounts on discontinued or overstocked items, out-of-season merchandise purchased for later use, and combining coupons and store discounts for items you would already be purchasing (not just item type, but brand). Business news reports suggest that bottom-line concerns by retailers are forcing them to understock rather than risk huge discounts this season, so don't assume that hard times mean that stores will be dumping goods at fire-sale prices.
The best deal to be had will always be in learning to make do with less. If you are considering a purchase of something you have survived without so far, ask yourself what it is that makes you think you need it now! It may be a real need - or it may just be marketing. Remember, there are few consumers who do not feel they are "above average" when it comes to filtering out marketing and sales tactics, but we are all susceptible at times.
Examine shopping habits
U.S. News and World Report cites statistics that between 2 and 5 percent of U.S. adults suffer from "shopoholism." This is not just buying stuff on impulse - it's doing so consistently, destructively, and in a way that is dangerous to your relationships and your financial security. It often involves hiding purchases, making frequent returns, and intense feelings of guilt after making non-budgeted purchases - which can, sadly, trigger more shopping to ease the pain. If you suspect you may be shopping beyond your means in order to relieve stress (generating additional stress as you wonder how you'll pay the credit card bills in what appears to be an economic collapse), we encourage you to confront the issue, whether it be by getting rid of credit cards or making them inaccessible (freezing them in a block of ice is one extreme option - then you can get the credit card if it's really needed, but have a self-imposed "waiting period"), going "window-shopping" after hours or without your wallet or purse, and putting items on hold or saving them in an online shopping cart to allow yourself time to consider whether purchases are actually needed. Additional help might include medications (antidepressants) and/or cognitive-behavior therapy.
Stick to a budget
How much do you want to spend on holiday shopping for each member of your family? If you haven't identified a number, you should, particularly in troubled economic times. Identify how potential gift purchases fit into your budget plan, what portion of the budget they would consume, and whether that matches your goals for overall gift-giving for that person. If your budget needs to be lower than last year, discuss your family's financial situation and needs with whatever family members are appropriate.
Acknowledge trade-offs
Would you rather your child had more toys, or a premium car seat? Extra clothes, or unisex clothes that can be used for a toddler son and a planned future child to come? Prepared food for a year, or the ability to make the freshest, healthiest baby food yourself? Credit cards offers us the power to pretend that trade-offs don't exist, but they only allow us to defer them, at greater cost.
Seek quality, not quantity
Consider the real cost of items you are buying - all of the pros and cons, including how long something will last, what it is made of, how much it will be enjoyed and used before it is outgrown or no longer usable, the space it will take up in your home, and what you will not be able to buy by buying this item. The more you ask these questions of your purchases, the more likely you are to find yourself buying fewer items that may cost more than the least-expensive options. Products you buy for children and parents this holiday season - be they toys, dishes, baby gear, decor - should be those you believe will best serve your needs for the longest term possible, especially in challenging economic times. This does not always mean spending less on a single item, but considering the total value you want to get from your purchases, and how you wish to distribute that value among various items. A few high-quality toys or items with unique educational or play value might get far more love and use than a pile of presents which have more "wow" factor before being opened but which may be lost in a child's room when the holidays have passed. Tap into your skills at making things, or those of people you know - perhaps you can trade your skills with another crafter to offer both families gifts, adding variety to handmade gifts.
It's all about the experience
Themed gifts of numerous inexpensive items, scavenger-hunt-style searches, and thoughtful packaging can go a long way in making an "ordinary" gift extraordinary. Fewer gifts also mean less time spent opening them and more time for new or revived family traditions. Think about what you most enjoy about holidays spent together as a family, and you will see how fewer, more well-planned gifts actually offer an opportunity in expanding those areas and making holiday family time more memorable.
Give
The holidays are always a time to remember the less fortunate, but this consideration is even more important now, as many families face risks so serious they will likely be forgoing any gift-giving this year. Look to local charities that help pass on gifts to underprivileged families, and know that the demand for these services will be particularly great. Volunteering your time can be just as valuable, or more valuable, than giving money, and would make a great family event - or series of family events - to participate in this holiday season.
Do you have any other tips for shopping smart for the holidays and beyond? Share them here so we can all keep them in mind!
Love this post. I am all about the celebrating - and since it’s still pretty far from most major holidays there is still time to a)make your own gifts, b)hide some of your small children’s toys so they will look new again when they come out in 3 months (I swear rotating works but I can *see* my mother’s face cringing as I type - I am not *saying* no gifts for the kiddos, for the record! Just that if you embrace the ‘fewer, high quality’ deal you can also maximize the stuff you do have). Oh, and adults don’t need presents. Gift buying for extended family over 18 is a chore, not just a waste of resources. Chore for the person who buys the gift someone doesn’t want or need, chore for the person obligated to return said gift or feel guilty not keeping it. Skip adult gifts! ;) The Grinchette