Smart Ways to Shop, Spend and Save this Holiday Season

(ARA) – The holiday shopping season is here, and with it comes the stress of dealing with crowded stores, the temptation to overspend and the search for a bargain.

“Being in a mall around the holidays is like grocery shopping at dinner time,” says financial expert Hilary Kramer. “You’ll want everything you see.” And since you’re in a holiday-induced good cheer mode, it is easy to just keep taking out that credit card and ignore the fact that you’ll have to pay for those purchases eventually. A little planning can make the holidays – and the ensuing bills – easier to deal with.

The first, and most important, step is to draw up a budget for your holiday spending. “Make a list of everyone you need to buy a gift for, compare it to your financial situation and then set a realistic budget,” says Kramer. Limiting yourself to spending only what’s in your wallet is a built-in safety mechanism. Services like AOL Bill Pay (part of AOL Money & Finance) serve a similar function when you’re shopping with a credit card – it will send you a “money alert” if you spend more than what you’ve allotted.

In addition to a budget, it’s also good to have a general idea of the gift you’re looking for. That way, you won’t be tempted by an expensive impulse purchase. Knowing what you want also gives you the advantage of shopping online – and avoiding crowds. “The Internet has made it easier than ever to be a comparison shopper,” says Kramer. “You can visit half a dozen Web sites in the time it would take to find a parking spot at the mall. And you may even score extras like free shipping or gift wrapping by shopping online.” Shoppers can also go to AOL Money & Finance which features “Smart Shopping with Consumer Reports” to see an extensive library of product buying guides. By turning to trusted names shoppers can view unbiased reviews and comparisons of everything from baby products to electronics, appliances, home & garden items and more. For another easy shopping solution, consider gift cards. They make it easy to stick to a budget, and in many cases you can buy them online and send them electronically. You can personalize the gift by matching the card to the interests of the person you’re giving it to. For example, the techie in your life might love a gift card to an electronics store, or give your teenage nephew a movie theater gift card and your favorite reader a gift card to a bookstore. Making a charitable donation on behalf of your friends or family is another great option. It’s really two gifts in one – the charity gets a much-appreciated donation, and the honoree gets the satisfaction of knowing they’ve made a difference. And in many cases, you can claim the donation on your taxes, another smart money move. As you shop, be aware that the holidays are a prime time for identity theft. A little shopping savvy goes a long way toward keeping you and your personal information safe. “When buying online, use a secure site, (you can tell at the checkout page if the link says https:// instead of http://) and shop with companies you know,” advises Kramer. Be sure to print out a record of your order and your confirmation number. At the mall, pay attention to your wallet and your purse at all times. When making a purchase, don’t give out any more personal information than necessary – you can refuse to give your phone number when checking out, for example. When using the ATM or the credit card device at stores, always cover the key pad when entering your PIN number. Always shred bills, receipts and anything else with your account numbers before throwing them away. And pay careful attention to your credit card statements. If you notice any unusual transactions, report them to the credit card company immediately. Using services, such as AOL Bill Pay, that provide you with an e-mail alert when a large transaction is made, are a great idea to help you manage your account. The service provides an early warning system with an authenticated e-mail “Money Alert”, protecting you if your credit card number is stolen and also helping guard against identity theft. After the holidays, paying bills online is a great way to keep track of your finances and to avoid hard copies of documents containing your personal information. With AOL Bill Pay, you’ll get an online summary of your charges via e-mail, and in most cases you can link directly to the supplier Web site to pay online. Smart shopping tactics will give you more time to relax and enjoy the holidays with friends and family.

Hillary Kramer is a noted financial expert, contributor to Wall Street Journal, CNBC, Fox News and others. You can read her daily stock tip blog, Hilary on Stocks, online at http://money.aol.com/. Courtesy of ARA Content