"He who tampers with the currency robs labor of its bread."" - Daniel Webster

SavingAdvice.com Blog

Bridging the gap between saving money and investing

Christmas gifts

Warning: Check Your Christmas Gift Cards for Expiration Dates

By Leave a Comment

Christmas gift cards

A YouGov survey recently showed that 29% of people have received a gift card they never used. Another 20% receive gift cards and forget to use them. Millions and millions of dollars are wasted this way and Christmas gift cards are no different. So, if you’ve stumbled across an old gift card, you may be wondering whether or not you can still use it or even regift it this year. Here’s what you need to know about expiration dates and gift card laws.

Check Christmas Gift Cards For “Hidden” Rules

About 42% of people who receive gift cards as presents use it right away. However, if you’re not able to use yours right away, you may want to check for any rules associated with the card. By law, gift cards cannot expire in less than five years. There may be fees for not using the card though, which will be outlined in the fine print on the card or within the paperwork that comes with it.

In 2009, President Obama signed the Credit Card Accountability Responsibility and Disclosure Act (the CARD Act). This law was designed to protect consumers from credit card companies but it also included laws for companies that sell gift cards.

Gift Card Laws

As mentioned above, although gift cards cannot expire in less than five years, you may be subjected to non-use fees and other fees. Below are the rules companies must adhere to.

  1. Gift cards cannot expire in less than five years. You have five years after the date of activation to use your gift card. For the most part, companies will print the expiration date on the card itself. However, after the law was passed, most companies did away with expiration dates altogether. To be sure you understand your card’s expiry information, read the front and back of the card closely.
  2. Non-use fees cannot be applied until one year has passed. Gift card companies used to immediately begin charging monthly fees if you didn’t use the card right away. The law passed in 2009 made it so they would not be able to charge inactivity or service fees until the card had been unused for at least one year. Additionally, no more than one non-use fee can be applied per month.
  3. Activation and reload fees are legal as long as they are properly disclosed prior to purchase. Make sure you read your card for any activation or reload fees. Disclosure of these fees is required by law.
  4. Promo gifts cards and prepaid phone cards are not covered under the Obama-era laws. Prepaid phone gift cards, promotional Christmas gift cards (or other promos), and paper gift certificates (usually used with small businesses) are not covered under these rules. It is important to use these cards ASAP as they can expire and often have strict expiration rules.

State Law Differs

Many states have also put laws into action to protect consumers buying gift cards as well. It is important to note these laws take precedence over the law signed by President Obama. Californians, for instance, can cash out gift cards that are less than $10 and any store-issued gift card cannot expire.

Using Your Gift Card

If you are one of the 20% who typically forgets to use your gift cards, consider putting them in your wallet in front of your most-used card. This will remind you that you have the option to use the gift card instead. You can also set up shopping plans and lunch/dinner plans with store and restaurant-specific cards to make sure they get used.

All in all, it is important to carefully read your Christmas gift cards and any other gift cards you receive to see when they might expire (if they do). This will keep you from wasting money and make the most of your gift.

Read More

22% of Americans Say They Are Scaling Back Holiday Spending This Year

By Leave a Comment

holiday spending

All in all, Americans are planning to cut back on holiday spending this year. About 50% of Americans say they’ll be spending the same amount they did last year, while 22% say they plan to spend less. Of that 22 %, about 34% say that other expenses are taking priority over buying gifts and other holiday-related purchases. Ten percent of Americans say they don’t plan on spending anything at all this holiday season.

People Aren’t Saving for Christmas

The COUNTRY Financial Security Index® took a survey weeks before Christmas to see how most Americans are feeling about their finances at this time of year. What they found is most people don’t feel all that financially secure heading into the holiday season. In fact, the survey found that only 23% of people are saving throughout the year for holiday spending. That’s right – less than a quarter are financially prepared for the holidays.

Doyle Williams, Executive Vice President of COUNTRY Financial said, “We shouldn’t let the magic of the season get us carried away into overspending and making financial decisions we will regret come January. Take simple steps to create a realistic holiday budget that accounts for all of those holiday expenses such as gifts, travel, decorations and entertaining. Then, start fresh in the new year with a savings plan to alleviate some of the financial burden in 2019.”

What is interesting is that millennials are the most likely to plan ahead to be able to afford additional holiday expenses. A surprising 31% of people ages 18-34 save throughout the year for Christmas. Twenty-five percent of millennials planned to work more hours to lessen the financial burden of the holiday season. Another 9% got an extra job to cover holiday spending, 14% sell personal items, and about 8% accept money from family/friends to help.

Other Holiday Spending Stats

About 70% of Americans say their largest holiday expenditure will be on gifts. Other major costs like entertaining and travel expenses will only account for 9% and 8% of spending, respectively.

Of the Americans headed out shopping this season, 70% have a specific budget in place. However, 20% say they don’t have a budget amount in mind. About 39% plan to spend less than $250 or no more than $500, while 17% of Americans plan to spend more than $1,000 during the holiday season.

Budgeting and spending statistics vary by income level and age. The older you are, the more likely you are to spend more around the holidays. Folks ages 65+ plan to spend around $1,129 each. Younger Americans, between the ages of 18 and 34, plan to spend much less ($585). People with an income sitting around $75,000 and above also plan to spend around $1,082 while individuals with an income falling between $50,000 and $74,000 plan to spend $757 or less.

Unsurprisingly, people with kids are more likely to spend more as well. Thirty-four percent of Americans are planning to spend most of their holiday budget on their kids. Women are most likely to say they will spend most of their holiday budget on their kids, while men are more likely to say they are spending the bulk of their Christmas cash on their significant other.

Family members will account for another 19% of spending, significant others (16%), grandkids (13%), friends (3%), and pets (1%). Although many people are in the “treat yourself” mentality during the holiday season, only 7% of Americans will spend the most on themselves.

Holiday Reminder

It is always a good idea to have a holiday budget in mind to keep your finances on track throughout the season. It is important to remember that it isn’t important how big or expensive the gift you give is. What is most important is the thought you put into it.

Consider saving money throughout the year for large holidays and other major expenses. You should also set up a budget and write a list for each present you intend to buy. Don’t go into debt or break the bank celebrating Christmas!

Read More

7 in 10 Would Rather Skip Buying Christmas Gifts: Here Are Some Alternatives

By 1 Comment

alternatives to buying christmas gifts

It’s no secret that exchanging gifts and gift-giving are a huge part of the holiday season. However, if you’ve found yourself less excited about the entire process of exchanging gifts, you should know you’re not alone. It turns out, a lot of people would prefer to give up gift giving if their families allowed it and if they had any alternatives to buying Christmas gifts.

Nearly 70% Want to Skip Buying Christmas Gifts

According to a holiday survey in an online Harris Poll on behalf of Suntrust, a surprising 7 in 10 people said they’d skip gift-giving this season if it were okay with their friends and family. And, it isn’t just the Grinchy types who hate the season. For the most part, they would rather spend the time actually doing something with their friends and family members than on buying or making gifts.

Holiday Stress and Debt Compounded

For a lot of people, the holiday season comes with stress and anxiety. When you add the obligation of gift exchanges, a large number of Americans face a tremendous amount of financial anxiety. This means not only worrying about debt and money during the season but also feeling the pressure of spending money on things they really cannot afford.

In fact, this pressure to overspend has been proven to result in a mountain of debt after Christmas is over. And, with as many as 25 percent of Americans experiencing post-holiday depression, gift-giving and the financial aftermath can be especially difficult for many families.

Alternatives to Buying Christmas Gifts

So, if you decide to forego gift-giving, can you still have a joyous holiday season? The answer, of course, is yes. It doesn’t take buying and receiving gifts to enjoy the holidays with your friends and family. Of those surveyed, 25 percent said they would rather use the money on activities and experiences instead of gifts. You might want to consider some of these alternatives to buying Christmas gifts.

  • Take a family trip or plan an activity. It can be as large or as simple as you all agree on, from doing an escape room together to taking a family trip skiing. In any event, it might be cheaper even if each family covers their own expenses, than buying each person a small gift. Plus, you can plan the event at any time of the year – it doesn’t necessarily have to be on Christmas day – which could save you money as well.
  • Have dinner and watch a movie. You don’t have to skip the entire Christmas day festivities. You could still get together for a holiday meal and then plan to watch Elf, A Christmas Story, or any other of your favorites.
  • Volunteer together. An activity that not only teaches children the importance of volunteering is helping out over the holidays. Sure, it might be difficult explaining that they’re helping feed people who can’t afford a Christmas dinner instead of receiving gifts, but the feeling you get from helping make someone else’s Christmas a little brighter might make up for it.
  • Pay down debt and save together. This might not be an alternative that sounds like fun either, but in the end, it might bring everyone more joy than exchanging gifts. Of those surveyed, 37 percent said they would rather pay down debt and 47 percent said they would save money or invest. Each person/family can use the money they’d use for gifts to either pay down debt or save for a big family trip or event later.

Don’t forget that finding alternatives to buying Christmas gifts doesn’t necessarily mean you have to completely skip out on giving toys and gifts, especially to the kids. If you only replace gift-giving among the adults, it can make a significant difference to those with large families and huge networks of friends.

This Season Find What Works for You and Your Family

It isn’t too late to reach out to your friends and family members and come up with a different plan. Remember that Christmas and the holiday season are supposed to be joyous and happy. Don’t spend it worrying about the money you feel obligated to spend on gifts.

Would you give up gift exchanges if your friends and family members agreed to it? Share your thoughts in the comments below.

Read More

Great Gifts that Don’t Cost Money
Dollar Store Christmas Gifts
Ways to Help Your Favorite Non-Profit

Why I Have Never Bought My Nieces a Christmas Present

By 9 Comments

playing at the park
Some people think I’m the worst uncle in the world (fortunately, there are others that disagree). My nieces are six and eight this year and I have never purchased a Christmas present for them. A lot of people think I’m cheap and stingy when they first hear this. I have even been told that I must not really love them.

I once had a friend who told me that if I wanted to give her flowers, I better damn well buy them for her while she was still alive so could enjoy them. She wondered why people bought flowers for those who had died, as they would never have the chance to enjoy them. She said that if I felt compelled to bring flowers to her once she died, I would have failed to understand that gifts shouldn’t be given to make yourself feel better, but should be given for the recipient to enjoy. Those words have stuck with me, and I get the feeling that a lot of people give presents on designated days not for the person, but to assuage their own guilt or out of obligation.

There is this really weird association in our society that presents given on specific days somehow express how you truly feel toward someone. This is especially true when it comes to giving presents on those big special occasions such as Christmas and birthdays (It’s also true that I have never given either of my nieces a birthday present). I think that due to the conversation I had about when to give flowers, I have never been a big present giver in the form of stuff that you buy at the mall on days designated as the time you’re supposed to give them. When I do give gifts, they tend to be spontaneously given, not dictated by a consumer-driven date.

I decided when my youngest niece had her first birthday that I was opting out of the traditional present-giving obligations. I decided that presents, especially on those designated days, have very little to do with how you truly feel about that person. I would instead try to show what I felt not through a physical present, but through my interactions with them.

So on Christmas day, my nieces didn’t get a Christmas present from me. Instead, we walked to the park and they got a 45 minute game of tag among the slides, bars and climbing apparatuses until we were all exhausted. They got to climb onto a concrete wave and pretend that they were body surfing with their uncle. They got a half-hour of watching their uncle try to replicate the flips that they easily did on the bars, laughing at his lame attempts, then celebrating with him when he finally pulled it off. They got to play a game of shadow tag on the way home from the park, running from car to car and then huddling next to it to make their shadow disappear so their uncle couldn’t stomp on their shadow. They got to spend an hour playing the board game Apples to Apples (junior edition), and laugh hysterically at all the crazy cards their uncle placed down, while he argued that the word he placed down was the best. They got to spend an hour having a “snowball fight” with all the tissue paper that was left over from the Christmas gifts others had given.

No, my nieces didn’t get a physical present from me this Christmas, but I hope that they ultimately ended up receiving a gift that they feel is worth much, much more…

Things To Do Now To Save Money This Christmas

By 5 Comments

Christmas tree lights

Christmas is a time for giving, and it’s easy to get caught up in the spirit. Giving feels so good that it can easily result in overspending and sometimes stretching your credit to the limit. That means you might spend several months after the Holidays just taking care of debts you built up while the spirit was upon you. The good news is, you can take some steps right now to make sure your funds will match your generosity.

Make Your List Now

Planning is the obvious first step in managing anything centered on finances, but the Christmas list isn’t usually an early priority. We all know shopping early has many advantages, but many of us never seem to get it done. Go ahead. Stop what you’re doing right now and write or type out a list of the people you intend to buy gifts for. Then start filling in gift ideas beside the names. If you can’t think of the right gift for someone right now; that’s ok; just make sure you get the names down. Then, take the list with you when you leave the house. Just having those names with you will provide you with savings opportunities you may otherwise miss.

“Lose” Some Money in the Checking Account

This is one of those sneaky ways to save money and there are a few ways to do this. You can round your deposits down when you balance the checkbook. You can also round all the check amounts up to the next dollar or five dollars. No matter how you do it, if you start “forgetting” about a little money now, you’ll have built up some shopping funds by the time the Holiday crunch arrives. If you can drop just $15.00 per week starting in June, you’ll have an extra $390.00 in your checking account just before Christmas. Better yet, move the “lost” funds to your savings account at the end of the month so you’ll draw a little interest.

Start on Projects

Lots of families and friends save money by creating gifts instead of buying them. Woodworking, crafts, sculpture, painting – no matter what your talent, you can probably make gifts for many of the people on your list. Those gifts are often the most treasured. The trick is to make sure you have the time to make the gifts, so start now. Chances are, you’ll also get to buy the project materials over time, which can help reduce the impact of the costs.

Sell Now, Buy Later

There’s nothing quite like a spring garage sale to bring in a little extra cash and help clean up the old homestead. Gather up those unneeded items now, get them organized, and have a yard sale. Put the proceeds in whatever fund you’re using to do your Christmas shopping. Voila; free shopping money! In most regions, winter is too late to think about this one.

Compare Online Pricing

More and more retailers are encouraging online buying by offering internet-only pricing for merchandise. It makes sense for them because they move the products with reduced overhead. It works for you because you save money. Check the items on the list you made in step one (You DID make the list, right?) and see how much you can save by purchasing from the website. Don’t forget to calculate in the cost of shipping. If you start now, you have plenty of time to wait for specials and choose the slower, cheaper shipping methods.

eBay, Baby!

Now’s the perfect time to have some fun on the online auction sites. Get your list (You remember the list, right?) and start searching for the items you’ve jotted down. You can save a bundle on many new items if you’re careful. Know the value of what you’re looking for and don’t get caught up in winning. As with any online shopping, keep shipping costs in mind.

Reap Some Online Rewards

If you’re the kind of person that has extra time on his or her hands to surf the internet, look into rewards sites. You can earn cash or points toward purchasing rewards at major retailers several different ways. MyPoints.com, for instance, sends you email offers and provides points for visiting websites and/or responding to offers. Accumulated points can be redeemed for gift cards. Use the cards to apply to your Christmas purchases.

Make Non-PIN Purchases

Most of us use our debit cards in lieu of writing checks or using cash at the checkout. Most of us also just punch in the PIN when it’s asked for. There’s a good chance you can save money by selecting the “Credit” option when you swipe your card. My favorite debit card, for instance, pays a flat 1% cash back on all non-PIN purchases at the end of the month and I use it to do all my shopping. A typical month’s cash back amount is about $30.00. That goes right into the Christmas shopping account.

Have a Few More Meals at Home

Eating out is fun, easy, and expensive. If just you and your spouse have a restaurant meal once a week, chances are that’s around $50.00 per week you could be putting toward gift shopping. Even fast food is likely to set you back at least $20.00 with drinks. Let’s see: 26 weeks to Christmas at $20.00 per week? That’s $520.00 in shopping money.

Buy Your Plane Tickets

If you’re flying for any reason, buying tickets in advance will save you money. Ticket prices tend to increase around the Holidays, so you can probably save money if you reserve your flight now. Thanks to online booking sites, it’s easy to find out anytime what you’ll save by booking early. A quick search on Travelocity.com shows a savings of more than $200.00 on the cheapest flight for 2 people from my home to my son’s home if I book today.

None of the ideas above will make you rich, but hopefully combining a few of them will help you save a few dollars on your Holiday shopping. You can also take it a step further and buy Christmas gifts that save money for the recipient. Just remember, the time to start is now. (And remember the list!)

(Photo courtesy of waferboard)

Too Old for Gifts, But Not for Christmas

By 10 Comments

Christmas is less than three weeks away. In past years, I would have completed my shopping by now. Indeed, in past years my shopping has always been done by about the middle of October. This year presents new challenges and I don’t know what to do about them. My kids are too old for gifts, but not too old for Christmas.

I prefer not to receive presents at Christmas. For years, my wife told me that I was selfish not to want gifts at Christmas or my birthday because I was generous with everyone in the family and they wanted to return the generosity. I never really saw the wisdom in that. If I am happy giving and everyone else is happy receiving, it seems like a win-win scenario to me.

This year I am beginning to see my wife’s point. I love buying gifts for my kids, but neither has expressed any real desire for anything and I cannot find anything that I think they will actually enjoy.

Unfortunately, both readily admit that they will be upset if they do not have presents under the tree on Christmas morning. (The quandary is even greater for my elder son who has a birthday a week later, and who also wants to open gifts on his birthday).

Please understand that neither son is mercenary. They are not looking for stuff, as much as they are looking for the experience that they have enjoyed for so many years. For them, there is still a magic in the receiving part of Christmas, but they both acknowledge that they really do not want or need anything in particular. Moreover, neither wants to receive cash because it is too impersonal.

What is a Dad to do? I am pleased that my kids are beginning to look at things from the perspective of what they want and need as opposed to their more youthful yearning for things that were far from practical or even desirable. Yesterday, one son was chatting with a friend about Christmas lists and I overheard him tell his friend that the friend was being foolish in asking for football shoulder pads because (i) the friend did not play tackle football, (ii) if he did play tackle football, the pads would come with his uniform, (iii) his Mom would never let him play tackle football, and (iv) since none of the other neighborhood boys had pads, he could not even use them in pick up games.

Everything that my son told his friend was true and I should be happy that he could be so candid and practical in giving his friend advice. At the same time, I know that I now have a greater challenge this year because my son (both sons, really) want to have the experience of a child at Christmas even though they are thinking like adults.

That is a feeling that I wanted when I was a teen, but have never really had since I was about eleven or twelve years old. In order to wow me with a gift, a person needs to know me so well that they can find something remarkable that I cannot find for myself. It is not the cost that matters, but the thought that goes into the gift. That is a very high bar and few people have ever reached it. So few, in fact, that I have asked that no one give me any gifts. I do not ask that out of spite or disregard for my family, but because I am truly happier enjoying watching others open gifts than opening them myself.

This year, however, my kids have set the bar high and I am not sure how I will reach it. They still want the experience of opening gifts. More importantly, I want them to have gifts to open, but I do not want to buy gifts that they will not want or need merely to give them presents under the tree. I encourage them to think about one special thing that would make them happy on Christmas Day but, as one son told me, “I’m happy with everything I have. I could tell you I wanted more stuff, but I would not be telling the truth.” At the same time, he does want the feeling of being a kid one more year at Christmas.

How would you give to older children who seem content with what they already have, the sense of wonder that a younger child gets when he or she first approaches the presents under the tree? I have not many days to sort this one out…