Polls / December 11, 2012

Do you budget for your festive spending?

Our latest eZonomics poll showed that the majority – or 58% – budget for the festive season.

Tis the season to watch the cash
More than half of respondents budgeting for festive spending could be seen as good news and as a sign of sensible shopping habits.
The emotion of so many family occasions clustering at the end of the year means it can be tempting to spend too much and have finances spin out of control. A few tips and tricks can save headaches in the long run.

Think before you buy
In one of our Four more tips for the festive season articles, it is explained taht theory suggests handing over cash is more painful than swiping a credit or debit card. Perhaps trying a “cash-only” diet, as this blogger did, might help reduce unwanted surprises. When shopping online in particular, another trick to watch out for is drip pricing  - the extra charges levied for delivery, paying by money card or other extras. The charges can be difficult to spot early on in the process making it hard to compare prices.

Outside the box
As well as watching the budget, the tips suggest creative ways to control spending. Making gifts yourself is an alternative (and sometimes cheaper) way to give loved ones memorable gifts. Added to that is the benefit of the so-called IKEA effect explained by author and behavioural economist Dan Ariely  - or the way we value things we make ourselves more. The recipient of our creations might as well.
Finally, we can give an IOU. Even just spending time together having a cup of tea could work, as research shows that spending time with friends and family makes us happy.

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eZonomics team
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