A first step in controlling back-to school and holiday spending is to create a written plan. For example, begin making your plan early in the year, and include all the holiday expenses you expect to make. Think about how much you can afford to spend for decorations, meals, travel, and gifts. Set a spending limit for each item on your list. Set a spending limit for each person on your gift list. Decide how you are going to pay for your. If you decide to use cash only, leave your credit cards at home when you go shopping. If you decide to use checks, be sure to record each check after it is written and figure the balance before writing another check. If you decide to use credit, choose one credit card for all your holiday or back-to-school spending. Plan to use your credit card with the lowest annual interest rate. Using one card will help you keep track of your spending more easily and help you control your spending. An easy way to stay within your spending limit as you shop is to write your limit on an envelope. Put the envelope in your wallet, and each time you spend money for that item or person, write the amount on the envelope and subtract it from your limit. Then, put the receipts in the envelope. You can record the amount whether you’ve used a credit card or cash. Keeping a running total will help you think before spending more than your limit.
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