When I think of all the odd gifts we give each other during the holidays, I fondly recall "The Twelve Days of Christmas" carol.
If you actually bought all the gifts from the partridge in the pear tree to the services of the 12 drummers, it would cost you about $17,300, according to PNC Advisors, which annually tabulates the total cost of all of the items in the famous song.
While most consumers will spend considerably less than that this year -- on average about $800 -- many Christmas budgets will still get busted and massive debt will still be accumulated.
So how about a twist on "The Twelve Days of Christmas" that won't break the bank and might actually help someone you love put money in his or her bank account? Here's my version:
On the first day of Christmas my true love gave to me software to track my finances. I know this isn't an overly romantic gift, but not fighting about money can really lift your loving spirits. On the second day of Christmas my true love told me this: "Honey, two for one deals don't save you money." Think about it. You never save when you spend. You spend less on something, but you're still spending. On the third day of Christmas my true love gave to me three hours of a fi- nancial planner's time. If time is money, then spending time with a specialist to better your finances is well worth your time and money. On the fourth day of Christmas my true love gave to me four I bonds. In- flation-adjusted savings bonds or I bonds currently pay 3.67 percent. I bonds are low-risk, liquid savings products. While you own them they earn interest and protect you from inflation. You can purchase I bonds directly from the government, at most financial institutions, or through payroll deduction. Go to www .savingsbonds.gov for more information. On the fifth day of Christmas my true love gave to me five golden rules for simplifying the holidays: The best present is your presence; it really is the thought that counts; it's the quality not quantity of the gifts; presents are forgotten but debt isn't; and, finally, nobody sees a therapist as an adult because he didn't get a life-size Barbie or Xbox as a child. On the sixth day of Christmas my true love reminded me that six months of living expenses set aside will help me weather a sudden financial storm. On the seventh day of Christmas my true love reminded me that if I fell behind on my bills, the negative information could stay on my credit report for seven long years. For more information on how credit reports work, go to www.ftc.gov and click on the link that says "for consumers." On the eighth day of Christmas my true love gave to me "The Power in Your Money Personality: 8 Ways to Balance Your Urge to Splurge With Your Craving for Saving" by Susan Zimmerman. In this book, Zimmerman discusses the psychological issues that affect how we handle our money. On the ninth day of Christmas my true love gave to me a Web address, www.insure.com/auto/autosave.html, where I could find nine ways to save on my auto insurance policy. On the 10th day of Christmas my true love gave to me a Web address, www.bankrate.com/brm/calc/MinPayment. asp, where I can compute how long it would take me to pay off the average total Christmas shopping bill of $800 at an interest rate of 13 percent if I made just the minimum payment required. And the answer is -- 10 years! On the 11th day of Christmas my true love gave to me an 11-month holiday savings plan so that I won't overspend next year. Here's a link where you can find an online calculator: www.asec.org/ ycalcs.htm.Use it to figure out how to reach your savings goal. On the 12th day of Christmas my true love drummed into me an overall budget plan for the next 12 months. You will never get a grip on your holiday shopping or your overall finances without a plan. For an easy-to-use and free budget form go to Budget Stretcher at www .homemoneyhelp.com/Budgetform.html.I guarantee that if you get even some of the items on this list, your loved one will be leaping for joy with a song in his or her heart well into the new year.
Michelle Singletary is a columnist for the Washington Post.
© Copyright 2006 Globe Newspaper Company.
