Myvesta News Release

ROCKVILLE, Md. — According to the annual Holiday Spending Survey by Myvesta, Americans are planning to increase their holiday expenditures by 15.6 percent over last year. The average holiday shopper will spend $835 this year, up from $722 in 2002. Forty-six percent of shoppers plan on spending less than $500.

"While the number has increased, we have not returned to the economic enthusiasm people showed in 2000 when then average shopper spent $1,220 on holiday purchases," said Steve Rhode, president and co-founder of Myvesta, a financial education organization. "The increased amount is a reflection of the recent drop in the unemployment rate and good news on the robust growth of the economy."

But Rhode cautioned that good news for the economy does not always translate into good news for individual households. "Individuals and families are still struggling with high debts due to job losses, unexpected events and overspending. It's important for them and everyone to plan ahead so that the fun of holiday shopping doesn't create the January blues from high credit card bills. Having a plan and sticking with it can save hundreds of dollars, give people much 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 is a random telephone survey of 1,000 people. It was conducted November 7-9, 2003. Some other survey results include:

• People in the Northeast will spend the most on holiday purchases this year, averaging $1191 per person. Those in the West will spend the least with an average of $574. People in the Midwest will spend $814 and those in the South plan on spending $824.
• Almost 13 percent of respondents plan to spend more than $1,000 on holiday purchases.
• Those aged 25-34 planned on spending $1,249 on holiday gifts, the most of any age group.
• Men plan on spending almost 11 percent more on holiday gifts than women. Men will spend $882 and women will spend $792.
• Those who are married plan on spending 18.7 percent more than single people. Married individuals will spend $889 and singles will spend $749.

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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.