Use A Spreadsheet To Plan Your Gifts
This professor of finance proposes you take all the fun out of wildly overspending on last-minute gifts for friends and family, and replace it with the measured, predictable joy of a spreadsheet. However, if you follow his advice, the odds will be much better that you'll end the year with healthier checking and credit card accounts.
First, fire up the spreadsheet and list everyone you can think of that you might want to give a gift to.
"Beside each person on your list, categorize them as an A, B, or C recipient. The A-list includes the people you must buy a gift for, such as parents, significant others, and children. The Bs are other close family and friends and the Cs are friends, colleagues and those who merit a gift for their hard work helping you in one form or another. Everyone else goes on the holiday card list."Then, of course, develop a reasonable budget:
Spending is one area where we should all strive to be below average, especially if our income is below average or money is tight. Clearly, the amount you decide to spend should be representative of your income. One percent of your annual income is a good upper limit to set on holiday gift spending because there will be other costs such as travel during this time that will further strain your budget. For example, a family with an annual income of $60,000 should limit their gift budget to $600.Make sure your dollar amounts on your spreadsheet don't exceed that 1% figure, and adjust as necessary, booting C-level recipients to the card list.
Funny, he doesn't mention anything about saving money by re-gifting. Maybe he equates that with kiting checks or something.
"Personal Finance 101 with H. Swint Friday" [The Caller-Times]
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Comments:
@TVarmy: It's not too far off. I work at a retail store that in the last 2 years has had to cut hours in Nov and Dec because *people aren't spending enough $$ here.*
I've been doing this since 2001. I have never used the 1% of annual income formula, but I think it's a great idea. I recommend listing:
- item purchased for each person
- where purchased
- total spent, including shipping
- mark when received
- mark when gift wrapped
This keeps me from buying the same person multiple gifts, giving the same person the same kind of gift year after year, and gets me to wrap the gift as soon as I get it, rather than having to wrap everything all at once.
I'll also say that holiday planning/budgeting is easy if you remember that the holidays are always in December. In January, tally up how much you spent (that Jan. credit card hangover statement is helpful) on the holidays, divide that number by 11 and put aside that much each month in a high yield savings account. Come Dec. 2008 you will be able to fund your holidays with cash the best present to yourself!
I do this every year, just because it's the only way I can keep my list straight (and I don't buy for that many people). My family doesn't make a big deal of giving lavish gifts, just one or two small things per person. We spend some money on decorating (poinsettias, ornaments, and lots of green wreaths) and having a really nice meal together (nice roast and good wines), but the focus is the celebration, not major asset transfer.
I don't keep track of the amount I spend on each person, but just plan on the spreadsheet which gift(s) I'll buy each person based on rough spending limits, and check them off as I buy them.
I have done this for several years, as well. I use the past years list as a basis and move people on and off the gift list as relationships change.
I also include line items for the extra stuff -- gift wrap, bows, cards, new decorations (if any), Christmas tree, etc. In addition, if I'm making homemade food (this year I'm planning some easy fudge) gifts I tally the ingredient costs on that.
To economize on the wrapping, etc. don't forget about your nearest dollar store. Last night I picked up 4 large rolls of paper, two bags of bows, 40 sheets of white tissue, a sheet of gift tags and two boxes of 16 each cards -- all for about $10.
Spreadsheets can really help with the planning effort.
keeping an annual list of gifts and recipients also helps avoid the potentially embarrassing situation of giving the same person an identical gift two years in a row. like, if my mom found a gift she thought was great, and gave one to each of my cousins for Christmas one year, she'd have a record of it and wouldn't give them all something similar the next year, thinking it was still a great gift. this is useful especially if you don't keep in close touch with some of your gift recipients (grown nieces or nephews, distant cousins, etc.)
@Eyebrows McGee: I'm with ya. I just have a .txt file. But then, mine's more of a list of who to buy for and what to buy than a spreadsheet.











Ok, when *I* suggest something like this, my boyfriend used to call it 'anal-retentive'. Now that I have him properly trained, he refers to this sort of behavior as 'analytically overwrought'.
(PS I heart Excel!)