KENTWOOD, Mich. — The holidays are here, and with them comes the pressure to find the perfect gifts without breaking the bank. Financial experts say the key to successful holiday shopping lies in planning ahead and sticking to a budget.
David Sponhauer, an investment advisor for Mattson Financial, emphasizes the importance of setting a clear spending limit before hitting the stores.
"I try to have my clients focus in on a number and try to evaluate what that number is for them." Sponhauer said.
However, the best approach to holiday budgeting starts months before December arrives. Planning throughout the year can prevent the financial stress that often accompanies the holiday season.
"Let's talk about that first part of the year. Let's budget throughout the whole year, proper planning, proper savings, that when we get to Christmas time, we've got our budget in place." Sponhauer said.
For those who didn't plan ahead during summer vacations, the consequences can be costly. Credit card debt from holiday spending can quickly spiral out of control.
"I don't want that credit card rolling over, because that's how that interest starts to go against us, and it gets more difficult to pay that off." Sponhauer said.
Even without year-long planning, shoppers can still make smart purchasing decisions. Sponhauer recommends creating a specific list before shopping.
"If I've got three people I've got to shop for. I've got an idea of what I want to spend for those three people, and I got an idea of what they want. Maybe we got a want, maybe we got a need." Sponhauer said.
Smart shoppers should also prepare for potential gift exchanges by researching products thoroughly before purchasing.
"I like to look at what's the quality of the product? What's the return policy for that product? Maybe checking out reviews." Sponhauer said.
While Black Friday has passed, deals continue throughout the holiday season. However, Sponhauer warns against impulse purchases just because something is on sale.
"I want to make sure that here's the things that I need, and I'm looking for that one specific deal on that product that I've already been looking at, not it's just on sale, so I'm going to buy it," Sponhauer said.
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