Prepare for the Holidays

Don't fall victim to scammers.

Federal Citizen Information Center

The holiday season is upon us once again. Good times with family and friends, and of course, lots of shopping, are just around the corner! Be sure to stay on your toes and don't fall victim to scammers as you hit the malls and the Web this year.

Holiday Shopping and Budgeting

The winter holiday season can be very expensive for American families, more expensive even than many can afford. With pressure to get Aunt Betty and Cousin Joe a “bigger and better” gift than last year, families can find themselves stretched to the limits and building credit card debt that can take months or even years to pay off. When choosing gifts, keep in mind that Grandma is most likely to remember and love a gift that brings back fond memories of a fun weekend spent together or a hobby you both enjoy. So, when deciding on gifts, what counts the most are gifts that remind the recipient how special they are to you – not how much the gift costs.

Start the holiday season by setting up a spending plan and promising to stick to it. This is a great time for singles and families alike to practice meeting financial goals. And, what better time to involve kids in family spending decisions and to teach them about giving gifts that come from the heart? When developing the plan remember that it should include all holiday-related expenses including food, gifts, entertainment, travel, decorations, shipping and postage, and greeting cards. Increase the odds of sticking to a budget by using the Internet to comparison shop for anything from a digital music player or plane tickets to a new red wagon or the traditional fruitcake. And, scour catalogs and mail flyers for the best deals. Make a list of gift recipients and planned spending on each person, and then track the expenditures to make sure limits aren't exceeded. Save money when buying gifts online by having them directly shipped to a long-distance loved one. If loved ones reside overseas, be mindful of the U.S. Postal Service holiday mailing deadlines.

Charitable Giving

During the holiday season there are a multitude of requests for charitable contributions. More than 80% of the money raised by the 700,000 + federally recognized charities in the U.S. comes from private individual donations. Be sure to research any charity that is soliciting a donation through a group like the BBB Wise Giving Alliance or the American Institute of Philanthropy. Be wary of pleas that come from organizations you aren't familiar with, ask for written information about the charity, refuse high pressure appeals, avoid giving cash gifts, and call the charity directly and ask how your donation will be distributed. When you call, ask specifically about administrative and fundraising expenses. Experts recommend that charities should spend no more than 35 – 40% of the annual budget on administration and fundraising expenses. Charities should also willingly make their financial statements available to anyone who requests them. Look out for for-profit organizations, posing as charities that use youths to peddle their product door-to-door. Always ask these young people for identification verifying the organization's name, address, and purpose. Also check with the National Association of State Charity Officials to see if the charity is registered in your state.

Protect Yourself from Identity Theft

Identity thieves are always on the look out for easy prey, so be especially vigilant this holiday season to make sure sensitive personal information doesn't fall into the wrong hands. With hundreds of data breaches in the news over the past year, consumers may be led to think this is the main way identity fraud occurs. But, more than 30% of identity fraud still results from lost or stolen wallets, checkbooks, credit cards and information stolen by friends, acquaintances, relatives or employees. It is important to get into the habit of keeping personal information secure at all times. At home, lock credit card statements and financial documents in a drawer or filing cabinet and, whether at home or work, always keep your purse or wallet out of sight. Some simple steps will also help ensure personal information is protected while shopping this holiday season:

• On store and Internet receipts, pay close attention to whether your account number is hidden (with Xs) except for the last four digits. If the full number is visible, fully mark it out with a dark colored ink pen before handing the signed copy back to the cashier. Starting December 5, 2006, companies must not print your credit or debit card expiration date, or more than the last 5 digits of your card number on your electronic receipt. Reconcile receipts with billing statements to make sure there aren't any unauthorized charges.
• Shop selectively online with trusted companies that have secure web sites. Look for a locked padlock, an unbroken key or a lock icon (usually in the lower right-hand corner of the screen) to determine if the site is secure.
• Don't give out account numbers or other personal information to someone who initiates a transaction with you. Phone, Internet, or mail solicitations with offers that seem too good to be true, from companies you've never done business with, almost always mean bad news.
• Always keep your car locked, with valuables and newly-purchased gifts out of sight as much as possible.

This article, and hundreds more, can be found on the NEA Member Benefits web site in the “Member Library” section: www.neamb.com/consumer_articles.jsp

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