Myvesta News Release

ROCKVILLE, Md. — According to the annual Holiday Spending Survey by Myvesta, Americans are planning to spend slightly less on holiday purchases this year. The average holiday shopper will spend $722 this year, down from $773 in 2001. Forty-two percent of shoppers plan on spending under $500.

"With people still uncertain about the economy and job security, their mindset is to hold onto more of their hard earned cash," said Steve Rhode, president and co-founder of Myvesta, a financial health center. "Even though our economy has shown some slight growth in the third quarter, it's not making a difference to your average consumer."

Although many people are planning to cut back on their spending or spend about the same on gifts as last year, Rhode says that some people will inevitably spend more than they had originally planned.

"As much as people say they are going to cut back on their spending, what they say and what they do can often be two very different things," Rhode said. Even though most people have an idea of how much they are planning to spend many of them never develop a plan about what kinds of gifts they are going to buy. After wandering around the mall picking up things here and there, they often get home to a much larger bill than they had originally anticipated."

Although the average projection of spending by consumers was $722 this year, almost 20 percent of those surveyed said they didn't have any idea of how much they were going to spend.

"Those who don't have a dollar figure in their mind for their holiday purchases are going to be the most surprised when they end up tallying the total for their gifts," Rhode said. "Having a plan and sticking with it can save hundreds of dollars, giving you a more enjoyable and less stressful holiday season."

Some holiday shopping tips from Myvesta include:

• Carry only two cards when shopping. Use one with a zero balance for purchases you will pay off in full. Use the other, low-interest-rate card for purchases you will pay off over three to six months.
• Record all of your purchases in your checkbook register. Even if you don't write a check, subtract the amount of the purchase. That way, when the bill arrives, the money will be in your checking account to pay the bill in full.
• Avoid "skip payment" offers that cause you to pay more interest and face larger bills.
• Avoid "buy now and pay later" offers, which encourage you to spend money you don't have.
• Use a low-rate, major credit card instead of high-rate department store cards.
• Don't apply for department store cards just to get a one-time discount.

The annual Myvesta Holiday Survey was conducted October 25-27, 2002. Some other survey results include:

• Those aged 35-44 planned on spending $977 on holiday gifts, the most of any age group.
• Men plan on spending almost 22 percent more on holiday gifts than women. Men will spend $795 and women will spend $653.
• Those who are married plan on spending 52 percent more than single people. Married individuals will spend $839 and singles will spend $551.
• People in the West will spend the most on holiday purchases this year, averaging $780 per person. Those in the Mid-West will spend the least with an average of $648. People in the Northeast will spend $743 and those in the South plan on spending $721.

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Myvesta^SM is dedicated to helping people create healthy financial lives. The organization provides a wide range of materials to inspire and inform people so that they can break down their barriers to financial and personal success. For more information visit Myvesta.org online.