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3 Spending Traps To Avoid This Holiday Season

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This time of year, it's all about the shopping.

Shopping for food, for gifts, and for decorations.

However, it's easy to fall into spending traps when you're already predisposed toward spending money.

Before you head out, be aware of the following spending traps, and do your best to avoid them.

1. Buying Something Because It's a “Good Deal”

When you're already on the hunt for bargains, it's easy to add just one more thing to your cart because it's a “good deal.” But do you really need it — or even want it?

If it's not on your list, you are still spending money you haven't planned to spend, no matter how big of a bargain it is. It makes more sense to stop and examine the purchase before adding it to the basket.

Ask yourself why you're getting the item. If your best answer is “It's a good deal!” that's really not good enough.

2. Minimum Spending for Free Shipping

Many retailers offer free shipping if you spend a minimum amount.

The problem with this arrangement is that it can trick you into spending more than you had planned just for the free shipping. This used to happen to me in the past. My husband and I, when shopping online, would hunt for a few more items to reach the minimum required for free shipping. After a while, though, I realized that we were often spending $10 or $15 extra in order to save between $8 and $9 on shipping. All told, we were spending extra, and still coming out behind.

Instead of trying to hit a minimum, look online for shipping promo codes, or look for shops that offer reasonable prices and free shipping. If you shop at Amazon a lot, it can be worth it to pay for Amazon Prime in order to get the two-day shipping. It comes in handy during a pinch when you need to order something quickly for the holidays. If you aren't worried about items arriving within a certain time period, you can save your basket and just keep adding to it with planned purchases over a period of a week or two until you naturally reach the free shipping minimum.

3. Credit Card Rewards

One of the best ways to shop more efficiently is to use credit card rewards to earn cash back. This cash back can offset some of the cost of your holiday spending. The problem comes in when you just pull out your plastic mindlessly for everything without tracking your spending. Even worse is when you make unplanned purchases, and you justify it by saying that you're earning rewards.

Rewards cards work best when you use them in conjunction with a spending plan. Figure out what, exactly, you will spend your money on, and then stick to that list. Make sure that you have enough money to cover your purchases when the bill comes so that you don't end up paying interest on your purchases. That paid interest can make your entire holiday season more expensive.

With a little vigilance, you should have no problem making the most of your money this holiday season, and avoid falling into expensive spending traps.

Giving A Gift Card? Make It Personal!

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One of the easiest ways to give a gift, particularly during the holiday season, is with the help of a gift card.

Gift cards are rising in popularity because they are easy to give, and the recipient can, to a certain extent, get what he or she wants.

The downside to giving a gift card is that it can seem so impersonal. Giving a gift card doesn't have to be impersonal, though.

“Gift givers worry that they seem impersonal,” says consumer expert Andrea Woroch. “However, you can personalize a gift card by going beyond the traditional picks like Starbucks or iTunes.”

Ideas For Personalizing Your Gift Card Giving

gift card for christmasOne of the first things you can do is find out what the recipient wants. There are numerous places to share a gift registry or wish list.

Amazon has wish lists that others can browse. Woroch points out that there are gift card registries that allow recipients to designate preferred stores so that gift givers can offer something they really will use.

When you know what the recipient wants, it's easier to get an appropriate gift card. It can be to a favorite store, or for an experience that the recipient might like.

My brother and his wife like to try restaurants in their area, but they don't always feel like they can spend money on a night out when they are struggling graduate students. I buy a gift card to a local restaurant, and they appreciate it, since it allows them to do something out of the ordinary.

Woroch also has other creative ideas around the way you present the gift. I usually tuck the gift card into a colorful Chinese money-holder, but Woroch has some great ideas that can make the gift fun. “Go one step further in the personalization process by wrapping it with a unique and relevant item to make it fun to open,” she says. “For instance, a spa gift card could be wrapped with a soothing eye mask or body butter, while a golf store gift card can be wrapped with a sleeve of golf balls.” These fun gifts are inexpensive, but it adds to the fun of the experience, and can enhance the gift card.

Get Your Gift Cards At A Discount

One of the ways you can make your gift giving cost efficient is to use discount gift cards. I often get restaurant gift certificates on City Deals, where you can save money off the face value of the gift. Woroch suggests GiftCardGranny.com as a resource for discount gift cards. “You can find discount gift cards to popular stores at average savings of 12 percent,” she says.

This is a great way to give something the recipient will really enjoy — without breaking the bank. You can get everyone what they really want and save money on your holiday shopping to boot.

What do you think about giving gift cards during the holiday season? Do you try to personalize these gifts? What are your tips for saving money on gifts for the holidays?