Myvesta News Release

ROCKVILLE, Md. — According to the annual Holiday Shopping Survey conducted by Myvesta, a nonprofit consumer education organization, Americans plan to spend 14.3 percent less this year on holiday purchases. The average American plans to spend $716 this year, down from $835 in 2003. Forty-eight percent of Americans plan to spend $500 or less.

"While we have heard news of an improving economy and a lower unemployment rate, this hasn't translated into a better financial picture for many Americans," said Pam Rhode, president of Myvesta. "People simply do not have the cash to splurge on their holiday purchases."

To avoid going into debt to pay for holiday expenses, Rhode recommends developing a plan to pay for your holiday purchases and sticking with it.

"Do the same thing that Santa does; make a list and check it twice!" Rhode said. "By planning ahead and developing a game plan, you can avoid the impulse buys and high credit card bills that drastically increase holiday expenses. That can save you big money after this holiday season is long forgotten."

Some holiday shopping tips from Rhode include:

• Start shopping now. The more time you allow yourself to find the perfect gift, the more time you have to shop around for the best deal.
• Carry only two credit 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.

The annual Myvesta Holiday Survey was conducted November 5-7 in a random telephone survey of 1,000 people. Some other survey results include:

• People in the West will spend the most on holiday purchases this year averaging $794 per person. Those in the South will spend the least with an average of $667. People in the Northeast plan to spend $744 and those in the Midwest plan to spend $703.
• More than 12 percent of those surveyed plan to spend over $1,000 on their holiday purchases.
• Those aged 45-54 plan to spend $826 on their holiday purchases, the most of any age group.
• Men plan to spend 15 percent more than women on holiday gifts. Men plan to spend $770 and women plan to spend $669.
• Those who are married plan to spend 21.3 percent more than single people. Married individuals will spend $776 and singles will spend $640.

For information on getting the most of your holiday dollars, read the Myvesta publication "How to Cut Your Holiday Bills in Half Without Feeling Like a Scrooge." It can be downloaded free online from Myvesta.org.

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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.