AICCCA Reminds Consumers to Keep Track of Holiday Spending
Fairfax, VA - December 6, 2007 — It is very easy to nickel and dime your way to spending more than you intended to every day. The extra large latte, the magazine that catches your eye at the checkout counter, the upgrade package at the car wash all add to the bottom line of dollars spent. At the holidays, this practice can be multiplied many times over with things like the cookies for your child's program, the string of lights you have to replace, the last-minute "little" gift for someone you forgot about. The Association of Independent Consumer Counseling Agencies (AICCCA) advises consumers to have a plan for holiday spending and keep track of every single holiday purchase made.
"Although it's almost impossible to anticipate every expense, a holiday spending plan is crucial," says David Jones, president, AICCCA. "Tracking expenses may help to control overspending and that information is very important when it's time to plan for next year."
AICCCA recommends consumers involve the whole family in developing a holiday spending blueprint and a plan to keep track of expenses. Having the whole family participate in the planning process will increase the probability that everyone will follow through. To get started, AICCCA offers these tips:
Call a family meeting to discuss how much you can spend.
The family will need an overall budget, but each person will also need to know what their individual amount available to spend is. This is also when the lists should be divided; be sure you haven't forgotten anyone or listed anyone twice. Don't forget to plan for holiday entertaining, food, gift-wrap and decorating expenses and who will buy those items.
Decide on a method of tracking.
Arm each family member with a notebook and pen. Staple an envelope for receipts to the inside front cover. Copy or paste a copy of each personal list on the first page, or use a single page for each item. For tech-savvy family members, a PDA or other hand-held device can store the list information and has the ability to make the same types of notations. The envelope for receipts can be kept in a purse or pocket. The idea is to use the method that works for everyone.
Hold periodic meetings to determine where you are in the process.
These meetings can be brief, but it's crucial to know if someone has already spent more than planned or had to make an unplanned purchase so a decision can be made about where to make changes.
Keep track of the receipts.
If possible, obtain gift receipts to include in your packages. The original receipts will need to be posted and filed. For gift purchases, write the name of the recipient on the receipt. For other items, note the category (entertaining, decorating, etc.) on the receipt.
Devise a filing system.
Once again, this is a decision that will reflect each family's personal style. If you have younger children, or even if you don't, the simpler the filing system, the better in most circumstances. If you used the notebook approach, they should be filed away with all the lists and receipts. If you used a higher-tech method, print out final lists with dollar amounts spent and any other information you may think is necessary. A large accordion-type folder may be enough, or if your family has a filing cabinet, dedicate a part of one drawer to holiday expenses.
Have an evaluation meeting after the holidays are over.
Go over what worked and what didn't. Now is the time to start planning for next year's holiday expenses. Use the information you collected and set a goal of saving at least that amount of money for next year.
Founded in 1993, Association of Independent Consumer Credit Counseling Agencies (AICCCA) is a national membership organization, established to promote quality and consistent delivery of credit counseling services. AICCCA and its members are focused on improved creditor relations, efficient processes and advanced technology to best serve clients and creditors. AICCCA members are independent nonprofit agencies that advocate for debtors, counsel millions of consumers annually nationwide and provide debt management services to consumers with excessive unsecured debt. For more information or to contact an AICCCA member office call 866-703-TRUSTAICCCA (866-703-8787) or visit www.aiccca.org.
