MAKING A HOLIDAY BUDGET LIST, CHECKING IT TWICE ...

Byline: Gwen Schoen Scripps-McClatchy Western Service

Now, before the rush and panic sets in, is the time to sit down and do your holiday planning. Not just your entertainment schedule, but your budget as well.

Putting together a budget may not sound very festive, but it is the key to avoid running up some major holiday debt, according to Judi Elliott, education director at Consumer Credit Counseling Service of Sacramento.

``Develop a budget and stick to it,'' said Elliott. ``A lot of people don't like the idea of budgets, but really, they are no more than planning.''

For some people, developing a budget may be difficult because they are accustomed to uncontrollable spending during the holiday season and making payments all year. If this fits your spending pattern and you want to make some changes, there are some things you can do.

Develop a plan

Ask family members for suggestions on how to cut back. ``There are probably other members of the family who feel the burden of overspending but are afraid to bring up the subject,'' Elliott said.

One idea: Draw names for gifts or decide to make everyone a gift instead of buying something expensive.

Plan a budget for how much you can afford to spend on the holidays and vow to stick to it.

Include expenses for office parties, decorations, baby sitting, school parties, open houses, extra groceries and travel.

Make a list of everyone to whom you usually give a gift. Then write an appropriate amount to spend next to each name. Adjust amounts until they fit within your budget.

Credit cards

Set a strict credit limit or better yet, use cash.

If you have to use a credit card, use the one with the lowest interest rate.

Wrap each credit card in a piece of paper. Every time you use it, write down the amount. Keep a running total and compare the figures to your holiday budget.

Beware of deferred payment plans. Finance charges may accrue during the deferred payment period and can double the cost of your purchase over a long enough period of time. If you can't afford it now, you probably can't afford it three months from now.

Pay attention to how you justify charges. Do you really need a new holiday outfit when last year's might do?

Gifts

Limit the number of gifts you give children. Emphasize caring and sharing rather than materialism.

Be creative. Consider personal coupons for such things as free room cleaning, a trip to the zoo, a video rental, car wash, window washing or baby sitting.

Give homemade foods and gifts.

Pass on cherished items to loved ones or a friend who collects such things.

Consider making or doing something for the people on your list rather than buying presents.

The strategy

Don't shop when you are tired, angry or nostalgic. Those moods lead to overspending.

Separate shopping trips from buying trips. Use shopping trips to compare prices and quality, then go back for the best deals.

Ask sales personnel when items typically go on sale.

If it fits into your schedule, consider a part-time retail job over the holidays. You can get an employee discount and early information about sales.

Begin shopping in January for next Christmas to take advantage of sales. Buy generic presents that can be given to anyone: a basket, vase, bowl, gourmet jam.