With the holiday season around the corner and the economic forecast still uncertain, many shoppers will be pinching pennies during the 2010 shopping season. But with a bit of planning and a few financial tips, shoppers can survive the season by spending wisely and avoiding debt.

When it comes to shopping for kids, Kayt DeMerchant, publisher of Macaroni Kid, a free, weekly e-mail newsletter highlighting items specifically for kids from Turner to Farmington, has found a time- and money-saving idea.

“I have my kids each keep a folder with catalog pages and drawings of items that are on their wish list. They usually end up with a sizable list so we sit down together and have them pick the top three or four items that they want to write about in their letters to Santa,” said DeMerchant, whose children are 9, 7, and 5, and this year her family includes an 18-year-old foreign exchange student.

“This is really helpful to be sure the kids get their top wishes and that we are not spending money on extra items that looked cool in a commercial, but that they don’t truly want,” said DeMerchant.

DeMerchant admitted that she does most of her shopping via the Internet. It saves on gas, avoids frustration with crowds, and is convenient for placing an order.

One secret weapon that DeMerchant uses with online shopping is to place items in the website’s shopping cart, but she doesn’t immediately go to the checkout. “If you wait a few days, many sites will send you an e-mail stating that you have unpurchased items in your shopping cart and they will offer you a discount to complete your purchase.”

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Corey Bouyea, of Lewiston, who formerly worked at The Gap and is currently manager of the L.L.Bean Flagship store in Freeport, has very specific advice for shoppers. “Plan out how much you are going to spend for each person and stick to the plan. Make a list and try to decide your gift items ahead of time,” said Bouyea.

“I also suggest looking for retailers that offer ‘gifts under a certain dollar amount’ strategies. They generally merchandise these items in one location at the store and you know what (price range) you’re getting into before arriving to shop.”

Bouyea’s retail experience leads him to suggest shopping early to get the best results. “Promotions and sales start earlier every year,” he said. “Not only do you get what you want, but it might be less expensive.”

It may come as no surprise that Lynn Hamper, senior client specialist at Northeast Bank in Poland, advised paying in cash and using credit cards wisely during the holidays.

“Pay cash. If you can’t afford it, don’t buy it. If you feel you need to charge, do so only if you can pay off at month’s end,” said Hamper.

Hamper advised that if you do use a credit card, make it work for you with a payback or rewards system.

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“Someone I know uses their credit card for everything – groceries, gas, etc. They pay it off each month in full, therefore, not paying a cent of interest and they rack up the points. They then redeem their points for gift cards and use these as their holiday gifts,” said Hamper. “What a smart idea.”

And a last cost-saving idea may well be the return of layaway plans at major retailers. While such programs were phased out in recent decades, according to www.todaysbudget.com, many retailers are bringing back the programs as a way to promote buying during tight economic times.

Quite simply, layaway is putting money down on items at the store that are then saved in the storeroom allowing customers to make payments over time. Once the item is paid in full, the buyer simply takes the item home having spread out the payments for the item.

While Kmart has always had layaway, this season has seen the likes of Sears and Wal-Mart offer the service once again. There’s even an online layaway service at www.elayaway.com that offers the service to major retailers like the Apple Store, Best Buy and Bass Pro Shops.


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