Avoiding holiday debt.

• Author: Tyson, Eric
• Position: The Holidays

THE HOLIDAYS are upon us, bringing all of those personal and family images and sensations we cherish but, for many of us, there are a few not-so-joyous holiday sights (a purse overflowing with credit card receipts) and sounds (the ca-ching! of the cash registers marking our escalating debt). These negatives easily can outweigh all that we love about the holiday season, especially during a less-than-prosperous economic period.

Overall, the Great Recession brought about a renewed dedication to saving. Before the recession, our national personal savings rate was close to zero, but it has climbed since then. It is very important that you not let your holiday spending zap all of the saving progress you made during the year.

Whether it is a dedication to the gift-giving tradition, a sense of obligation, or a feeling that the holidays entitle us to have a little more fun than usual, too many of us seem to turn a blind eye to the budget-busting reality of all that spending over just a couple of months.

What if you could have a wonderful, memorable holiday and avoid the financial hangover afterwards? There are ways to keep your holiday spending in check:

Find an alternative to gift giving. Many people feel they have to give presents during the holidays, either because it is a family tradition or because they know their friends and relatives have gotten gifts for them. There are plenty of great ways to trade in this tradition for another one that is even more meaningful, and chances are your family and friends will be happy to save gift-buying dough as well.

Instead of exchanging gifts, your family members might want to pool their money and spend it on a holiday outing. If you have kids, you probably still will get them a little something, but set strict spending limits. Instead of piling up the toys, let each child choose an outing or event that he or she gets to spend with you one-on-one. Kids will look back on the valuable time you have spent together a lot more fondly than they will any toy or video game they use a couple of times and then toss aside.

If you must buy gifts, cut your expenses elsewhere as necessary. Perhaps you would rather dine out or go to the movies less, or maybe you can forego that new pair of shoes you have been wanting for yourself in order to afford gifts for the grandparents. It does not matter where you make cuts, just that you make them. Keeping your other spending under control while you are out there doing your...