Can You Deck the Halls Debt Free?

(ARA) - Has the thought of holiday spending left you feeling like a Scrooge? A gift list of overpriced action figures can take a bite out of your budget and leave little for decorating and entertaining. You don't want to hamper your holiday fun, but you also don't want to be paying for Christmas in April.

Go Real or Fake It?

The world population can be divided into many groups, but none are so diametrically opposed as real and artificial tree buyers. According to the National Christmas Tree Association (NTCA), 44 percent of trees sold each year are real and 55 percent are artificial. Real tree lovers sing the praises of sweet-smelling pine, while artificial fans appreciate needle-free carpets. But which is more economical?

A natural tree can cost $4 to $8 per foot depending on the type. NTCA found the average tree price in 1999 was $32, not including the one-time purchase of a stand. A quality artificial tree can cost between $200 and $400. If you plan to keep an artificial tree for several years, faux may be the way to go. However, most artificial trees are not biodegradable, while real trees can be recycled or, if purchased with the root ball intact, replanted.

Lighten Up

For some people, the holidays aren't complete without a plastic Santa and a blinding light show, but high voltage displays can also run up electric bills. To reduce energy costs, turn on your decorations only in the evening and only when you're home. Use a timer to shut them off automatically. The Energy Idea Clearinghouse at Washington State University also recommends replacing your seven- or nine-watt Christmas lights with five-watt lights which use 30 to 45 percent less energy and last 65 percent longer.

Try Traditional

Is your tree still donning metallic ornaments and fuzzy garland from the disco era? If you want a different, inexpensive look, go from 1970 to 1870. Enlist the kids to string popcorn, cranberries and pasta for old-fashioned garlands. To really feel like Martha Stewart, try garlands of dried oranges and apple slices or cranberries and cinnamon sticks. Make cutout cookies to use as ornaments, but add extra flour or you'll have headless gingerbread people.

Budget Your Bash

Holiday entertaining also can be made less expensive with a little creativity. If you're serving a large group, make dishes such as soup or pasta that use simple ingredients, can feed a crowd and don't tax your culinary skills. Potlucks also work well for large numbers. For neighborhood get-togethers, organize a progressive dinner. The party moves from house to house with a different neighbor serving each course of the meal. If you're planning a party at a restaurant, schedule it for lunch, which is usually less expensive. Save on invitations by sending e-mail messages or by making invitations on your computer.

The bottom line is, don't let holiday trimmings trim your savings.

Jim Larranaga is executive vice president of Priority Publications, a Minneapolis-based publisher of financial newsletters.

Courtesy of ARA Content, www.ARAcontent.com, e-mail: info@ARAcontent.com

EDITOR'S NOTE: If you would like to run "Talking About Money" as a regular weekly column sponsored by a local financial institution, contact Jim Larranaga at (800) 727-6397.

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