Does holiday shopping dig you into a financial hole every year? Gary Crawford has an expert that can help us stay out of that hole.

PARTICIPANTS: Gary Crawford and Kansas State University Extension family finance expert, Elizabeth Kiss. Matt Shay, President of the National Retail Federation.

Transcript

It's time for holiday shopping!

How much have you done?

I've done quite a bit, actually.

The fun has just begun.

Actually, it began early this year, and Matt Shea with the National Retail Federation is expecting a big increase in holiday gift spending this year.

Between 2.5 percent to 3.5 percent above last year's holiday season.

And some consumer financial experts are already voicing concerns with what seems to be a willingness to spend big this year that maybe there's going to be a lot of people spending a lot of money they don't have and getting into a lot of financial trouble.

I used to work retail before I did this, and I also worked in a bank.

So I've seen it from a lot of different sides.

Yes, she has.

That's Elizabeth Kish.

She is now a Kansas State University Extension family finance expert, and she says for some people, like me maybe, and she says like her maybe, holiday shopping and buying is almost like an addiction.

Even though I know what my limits are, there's just something about it.

You really do get this hit, and it feels good.

Wow!

I feel good.

Thank you, James.

But then when the money runs out, and/or the bills come in later, it's not so good.

So, Elizabeth Kish says to avoid what for some can be a true financial disaster, first rule is the one that Santa follows.

You're breaking my list.

You're checking it twice.

Oh, definitely, yes.

I am a firm believer in lists.

And putting a firm spending limit on that list.

Now, every year I spend way too much.

So before we went on here, Elizabeth, you said for me to ask myself a question.

What is the minimum that we need to have a joyous holiday?

Hmm.

For most people, it's way less than what they're actually thinking they need to do.

Really?

Okay.

So once I've introduced the gift list to the budget list, then, Elizabeth, I suppose I have to actually sort of stick to the budget.

Right.

Right, yeah.

Okay, so how do I figure that out?

I mean, what can I do to help me make sure that I don't go over that spending limit?

Don't substitute credit for cash.

Cash?

Cash?

What a concept.

Hmm.

Otherwise, though, you say I'm going to be getting back on this thing here.

Yeah, the treadmill to financial oblivion, a vicious cycle like this.

I don't have the cash for the holiday, so I put it on my credit card.

I'm just going to write it out until February when I can file my income tax, and then I use the majority of the refund to put down my credit card bill.

I may not always pay it all off.

I've been still paying my credit card from the last two holidays.

Hmm.

How did she get into my head like that?

So, all right, I've made the list.

I have pared it down to something manageable, and I'm leaving the credit cards locked up someplace.

So now, can I go shopping, please?

OK, go shop.

OK, I am gone.

Thank you.

You're welcome.

This is Gary Crawford reporting for the U.S. Department of Agriculture.