Suze Orman Has This Advice for Holiday Shopping

Last year, shortly before the holiday season, financial guru Suze Orman offered holiday shoppers some truly solid advice. Orman's suggestions were so helpful that we wanted to share them again here.

Do not forget about yourself

Orman says, "True generosity is when you are as generous to yourself as you are to others." As much as you may dream of a holiday season straight out of a made-for-television movie, your first obligation is to yourself. If you're having trouble paying bills or know that big bills are coming due in January, why make things harder on yourself?

Before you determine if you're going to purchase gifts or entertain over the holidays, take a hard look at your monthly budget. No one who cares about you wants you to spend money you don't have.

If you do have money available for the holidays, create a budget that you can stick with. You'll thank yourself in January.

Think outside the gift box

Time is a non-renewable resource. Once it's gone, it's gone. Orman points out how valuable sharing your time with another person can be. Here are some of the ways you can provide the gift of time:

• Offer to give an older adult a manicure or pedicure in the comfort of their home.
• Offer to babysit or dog sit so the gift recipient can get out for the day.
• If someone you care about has a DIY project coming up, offer to help them tackle it.

There's no reason to take money from your savings account or move bills around so you can buy a material gift. What people really crave is connection, and you can provide that.

Include others in the conversation

If your friends or extended family have a gift exchange or routinely buy gifts for everyone in their orbit, ask about being budget-smart this year. That may mean that only kids exchange gifts, or there's a strict price limit.

Don't be embarrassed to ask. You never know who else in your family may need to take it easy with finances. And remember: You're not asking for permission. You're letting the people you care about know that you're changing things up this year.

Consider needs

Inflation has been a bear for many for the entirety of 2023. While inflation appears to be cooling, that doesn't mean people still don't feel the pinch. If you're buying gifts this holiday season, why not make them useful?

For example, a college student may appreciate a grocery store gift card. An older adult is likely to enjoy a gift card for gasoline or a drive-through car wash. Young children can almost always use things like pajamas, socks, and new tennis shoes.

Imagine how good you'll feel about making life a little easier for someone you care about.

Avoid debt

Whether you're tempted to pull out a credit card to cover the cost of gifts or take advantage of a buy now, pay later offer, avoid the urge.

Let's say you put $500 in charges on a credit card over the holiday season. Unless you pay it off in full before the first billing cycle is up, you'll owe money on that debt. For example, if the interest rate on your credit card is 18% and you pay only the minimum payment each month, it will take you 47 months to pay off, and you'll fork over an extra $200 in interest.

Fill a future financial need

If you're sitting pretty this holiday season and have a generous budget, take a look at the financial needs of each gift recipient. For example, if your grown child does not have an emergency savings account, consider setting one up for them. If you have nieces, nephews, or grandchildren, consider donating to their 529 plan or a Roth IRA.

If your budget is currently pretty bare-bones, that's okay. You're in the same boat as a whole lot of other people. However, being low on cash doesn't mean you can't enjoy the holidays. It just means you'll need to approach this holiday season with a solid plan in place.