Boring Gifts They'll Love

The following is a re-post from October 30, 2008.

Everyone likes to give gifts that "Wow!" We love the anticipation as the gift getter rips or sometimes agonizingly peels off the paper. But once the exciting moment is over there's not much left. The gift goes into a pile, then migrates to a closet where you, the giver, may never see it again. So this year save yourself the heart palpitations and give some boring gifts that they'll really love.

For the kids: Sure Johnny may say that he wants a Guitar Hero, but underneath he's really hoping to begin his investment portfolio--he just doesn't know it yet. Really getting Johnny hooked on the wacky world of Wall Street isn't such a crazy idea. Though the market is crazier than a fruitcake this year, remember stocks are going cheap. You can purchase a few shares of the company that makes his favorite pastime through Sharebuilder or ETrade. Then teach him how to follow his stock, purchase additional shares, etc. Don't you wish someone explained all that mumbo jumbo when you were a kid.

Then there's Suzy. She's already got a college picked out. You could help her get there by contributing (or even starting) her college fund. You don't have to be a parent or grandparent to contribute to an Educational Savings Account. Think of the investment you'll make in our nation's future and in Suzy.

For the person who has everything: Chances are that these people still need to eat. You can help make grocery shopping more fun. And you can help local farmers by giving them a share in Community Supported Agriculture (CSA). Basically you purchase a weekly box of fruits and vegetables right from the farm.

Or, remember those fruit-of-the-month or wine-of-the-month programs? Put a new and more personal spin on it by giving your own homemade dinner/dessert/whatever-of-the-month. This is a gift that might even motivate you to learn how to make something new.

And if all of that is too much for you...you can always give a little of your time.

So there are a few boring ideas for gifts. But remember that it's the least exciting gifts that are usually the most appreciated.

How to Safely Bargain Shop Online

This is the way that I shop online. I see something I really want, like a new pair of Keen shoes. I might go to the store and try them on, but usually I don't have time for that. So first I visit one of the online shoe stores, but maybe there's still more than I'm willing to pay. So I spend some time searching until I find a price that I like. Oh, but wait I've never heard of this retailer. Are they trustworthy?

Now it's time for investigation. Look for the obvious:

1. Do they have a security/hacker prevention or testing certificate?


2. Does the LOGIN process use an encrypted HTTPS page? Notice I've capitalized LOGIN, that's because you want the pages where you enter all your personal information to be secure.


3. Does the checkout process use an encrypted HTTPS page? Naturally you want the payment pages to be secure.


4. Read the privacy policies. It's so easy to just blindly click "Accept" here. But you should 1) ensure that there isn't a big blank after the small amount previewed in the acceptance screen and 2) read it to see if you agree with it.


5. Find out how to contact the company if there is a problem. Keep the site bookmarked or better yet, write down (or keep an electronic file) of the company name, web address, customer service contact info.

Beyond this you can do some research to check out the company.

• Search Google for the store name and words like "scam" and "customer service."


• Check the Whois to see what the website registration looks like. It is not a good sign if it was just registered last week.


• Check if the company has a yellow pages listing and street address. If you have a phone number, a company with a street address is a lot more reassuring. Check the address on Google Maps to see if it is a vacant lot.


• See if the site has a warning listed on McAfee SiteAdvisor.

It can take a lot more time to go through this investigation. But it's worth it. You goal should be to get a good product at a great price from a company you can trust.

This post originally ran on November 10, 2008.

Is it Too Late to Start a Holiday Savings Fund?

One Christmas I asked Santa for the Dancerina Ballerina doll. Here’s a rather poor video of the doll, but it gives you a good view of the doll’s amazing (to a five-year-old anyway) talent.



I was heartbroken when I didn’t get it. Maybe that’s because I didn’t tell anyone that I wanted it other than Santa. I remember my mother pointing out that I had received many other wonderful things including a Radio Flyer sled, which was really awesome. But all I focused on was the doll. That had to be a downer for my parents who probably spent too much on presents and tried hard to make their kids happy. Sure, I still remember not getting Dancerina, but not because I was disappointed with Santa or my parents, but because I think it was stupid to be a sourpuss over a doll. Not getting the doll did not ruin me for life. I don’t remember thinking much about the doll after that but, I do remember some wild rides on the Radio Flyer.

The Holidays can be financially stressful, but it’s really what you make of it and planning reduces a lot of the pressure. It’s not too late to start a saving for the Holidays.

Christmas Savings Clubs originated in the Depression. They weren't actually clubs, but specialty savings accounts. Savers would open a fund early in the year and contribute a regular amount, typically about $25/month. It worked almost like a short-term certificate. Savers could not take the money out until the end of the year. The clubs fell out of favor among both financial institutions sometime during the 1980s. So, while you may not be able to open an official Christmas account, you can start preparing for the season.


First, you’ve got to set a budget. Only you know what is reasonable for your situation. If you need to cut down on presents this year there are loads of ideas on alternative or no-cost gifts on the Internet.

Next, look at your overall budget and see how much you can afford to put away on a regular basis. There are 10 weeks or 64 days left until Christmas. Setting aside $25 a week would give you $250 to spend, or $5 a day would yield $320, and so on you can do the math.

The most important thing is not to jeopardize your financial health for the sake of a few minutes of happiness. Maintaining your financial health is a great gift to give your children. Avoid using credit cards to purchase gifts. Stay within in your means and you’ll also avoid the January blues.

Get Ready, Get Set for Black Friday

The big day is just about a week away. Of course I'm talking about Black Friday. The day shopper officially mark the beginning of the holiday season and retailers cross their fingers that the books turn from red to black. It's the great American tradition of sales.

Get a jump on your shopping plans by previewing the leaked Black Friday ads. Before you peak keep in mind that these are not always the published sale fliers and may not be completely accurate or may differ in your area. That said, the web publishers claim that their info is reliable.

• BlackFriday.info


• BlackFriday


• Black Friday Online


• Black Friday.GottaDeal.com


• bfads.net


• TheBlackFriday.com


• BlackFriday.fm


• BlackFridayAds.com


• TGI Black Friday


• BlackFridayCentral


• BeatTheCrowd.net


• BlackFDay.com


• iBlackFriday.com


• ProBargains.com


• DealTaker.com

You don't have mingle with the mall crowd to get many of the Black Friday deals. Many stores are offering the same or additional savings online. So be sure to check out the web. You can also get a jump start on Thursday since many retailers are starting their Black Friday sales early online only. However, some retailers are holding off on posting online deals until stores open on Friday. So check before you checkout online.

How to Safely Bargain Shop Online

This is the way that I shop online. I see something I really want, like a new pair of Keen shoes. I might go to the store and try them on, but usually I don't have time for that. So first I visit one of the online shoe stores, but maybe there's still more than I'm willing to pay. So I spend some time searching until I find a price that I like. Oh, but wait I've never heard of this retailer. Are they trustworthy?

Now it's time for investigation. Look for the obvious:

1. Do they have a security/hacker prevention or testing certificate?


2. Does the LOGIN process use an encrypted HTTPS page? Notice I've capitalized LOGIN, that's because you want the pages where you enter all your personal information to be secure.


3. Does the checkout process use an encrypted HTTPS page? Naturally you want the payment pages to be secure.


4. Read the privacy policies. It's so easy to just blindly click "Accept" here. But you should 1) ensure that there isn't a big blank after the small amount previewed in the acceptance screen and 2) read it to see if you agree with it.


5. Find out how to contact the company if there is a problem. Keep the site bookmarked or better yet, write down (or keep an electronic file) of the company name, web address, customer service contact info.

Beyond this you can do some research to check out the company.

• Search Google for the store name and words like "scam" and "customer service."


• Check the Whois to see what the website registration looks like. It is not a good sign if it was just registered last week.


• Check if the company has a yellow pages listing and street address. If you have a phone number, a company with a street address is a lot more reassuring. Check the address on Google Maps to see if it is a vacant lot.


• See if the site has a warning listed on McAfee SiteAdvisor.

It can take a lot more time to go through this investigation. But it's worth it. You goal should be to get a good product at a great price from a company you can trust.

Friday Encore: Can I interest you in an extended service agreement?

Welcome to the Friday Encore where you'll get to read a past blog posting that I thought you might not want to miss. Okay, call it a repeat if you want. When necessary the post may be updated with new information or data to keep it relevant. The following was originally posted March 3, 2008.

Can I interest you in an extended service agreement?

Whenever I shop at a certain electronics mega store near my home I dread my turn at the register. “Why” you ask. Do I not get fabulous new toys at inhumane prices? Well sure I love that part of it—except the guilty inhumane prices. But it’s the pressure at the end of the sale that I can’t stand. You know the “would you like the extended warranty” question.

Even if I say “no” with confidence they keep pushing the point till I finally lose it and scream “Yes, I’m sure I don’t want the extended warranty on an alarm clock!” And sometimes they continue, “but what if it doesn’t wake you up someday?” Scenarios run through my head of missed busses, unbrewed coffee and mismatched shoes. But then my logical side calming clicks and says “Stop. This clerk is just trying to reach some sales goal. It’s just his job, nothing personal. The alarm clock will be fine.” I smile, shake my head and politely say “No, thank you.” Then I pay and am out the door. Whew!


But I have to wonder if my alarm clock or my electric toothbrush stop working what will an extended warranty do? There isn’t a repair room at the back of the store, is there? No in this day of disposable everything your broken electronics cost much more to fix than replace. So what’s with all these extended warranties anyway? Is it ever a good idea to purchase them?


Repairs might be expensive, but they are also not likely. Most products are built to last for at least three years. Anything that breaks within the first year or less is usually 100% covered for repair or replaced under the manufacturers sales warranty. (And you don’t have to fill out those warranty cards—they are mainly for marketing data collection purposes. Trust me I’m a direct marketing data junkie.) Extended warranties yield 40 to 80 percent profit, according to Consumer Reports. And so we can conclude that purchases extended warranties on most electronic are a waste of money.

Will this void my warranty?
Photo by Josh Bancroft

But there are exceptions. Large, complex items such as Plasma TVs, home fitness machines and computers might need more consideration. Personally, I still think that TVs will break quickly if they plan to break at all. I’ve read that warranties on fitness machines may be worth the cost and repairs may come down the road. I always buy the warranty on my laptops after having a horrid experience with a malfunction machine shortly after purchase (crazy story for another time, I finally had to call the VP of marketing at HP to get it fixed.)

But here’s a tip: Before you say yes to an extended warranty on any product, see whether your credit card provides similar coverage. Such plans, most often found on gold and platinum cards, typically lengthen the original manufacturer’s warranty by up to one year. If you use a MasterCard, look in the fine print for the words “extended warranty.” Visa calls its program Warranty Manager Service.

And another: Conumer Reports often investigates warranties and repair/fail records of products. Before you buy check them out.

And finally for more on warranties check out PC World’s article on the subject. It’s full of good info on warranties of all equipment including public surveys on warranty satisfaction.

Boring Gifts They'll Love Forever

Everyone likes to give gifts that "Wow!" We love the anticipation as the gift getter rips or sometimes agonizingly peels off the paper. But once the exciting moment is over there's not much left. The gift goes into a pile, then migrates to a closet where you, the giver, may never see it again. So this year save yourself the heart palpitations and give some boring gifts that they'll really love.

For the kids: Sure Johnny may say that he wants a Guitar Hero, but underneath he's really hoping to begin his investment portfolio--he just doesn't know it yet. Really getting Johnny hooked on the wacky world of Wall Street isn't such a crazy idea. Though the market is crazier than a fruitcake this year, remember stocks are going cheap. You can purchase a few shares of the company that makes his favorite pastime through Sharebuilder or ETrade. Then teach him how to follow his stock, purchase additional shares, etc. Don't you wish someone explained all that mumbo jumbo when you were a kid.

Then there's Suzy. She's already got a college picked out. You could help her get there by contributing (or even starting) her college fund. You don't have to be a parent or grandparent to contribute to an Educational Savings Account. Think of the investment you'll make in our nation's future and in Suzy.

For the person who has everything: Chances are that these people still need to eat. You can help make grocery shopping more fun. And you can help local farmers by giving them a share in Community Supported Agriculture (CSA). Basically you purchase a weekly box of fruits and vegetables right from the farm.

Or, remember those fruit-of-the-month or wine-of-the-month programs? Put a new and more personal spin on it by giving your own homemade dinner/dessert/whatever-of-the-month. This is a gift that might even motivate you to learn how to make something new.

And if all of that is too much for you...you can always give a little of your time.

So there are a few boring ideas for gifts. But remember that it's the least exciting gifts that are usually the most appreciated

It's a Small Biz Christmas

It's tough enough being a small retailer, but the holiday season is it's own animal. On one hand it can be the biggest money maker, on the other it's when you've really got to set yourself apart from everyone else. And this year the competition is going to be even stiffer.

The National Retail Federation (NRF) reports that consumer spending holiday shopping will be up only 1.9 percent over last year. That represents the lowest increase in planned consumer holiday spending since the survey on the subject began in 2002. Further the Survey reveals that U.S. consumers will spend an average $832.36 on holiday shopping this year.

More importantly, consumers say one factor will play the biggest role in buying decisions this year: price. Forty percent of shoppers say that sales or promotions will be the largest factor in determining where to shop. The average person this year will spend $466.13 on gifts for family; $94.52 on friends; $26.70 on co-workers; and $43.50 on other gifts. Spending is expected to be particularly weak among young adults, with 18- to 24-year-olds planning to spend $50 less on gifts than a year ago.

Okay don't get all glum. It's Halloween and hopefully you've already begun making plans for the big season. Still there are some ideas that will help you compete against the big box stores.

One thing that you've got that they don't is customer service. So don't skimp in this area this year. Put yourself in your customers shoes and know what they want.

1. Customers still want to feel the warm cozy experience of the holidays. Make your shop a destination. Serve hot cider on chilly weekends. Offer shopper tag-a-longs a comfortable spot in which to wait.
2. Everyone is on a tighter budget. Group items by price and display the price such as; an under $20 gift table, an under $50 gift table and so on. In other words, make it easy on your customers to find gifts that fit within their budget.
3. Designate an employee as a personal shopper. One site suggests calling this person a Budget Wizard. "...call him or her your Budget Wizard -- what their budget is, what type of gifts they need and for whom. Then, let your Budget Wizard find items in your store that fit the budget and the general concept of what the customer wants to buy."
4. Create unique gift displays that show how to put more than one item together for a great gift.
5. Pamper last minute shoppers by staying open longer and helping them make decisions.

Manage your costs while meeting customer needs.

• Shift hours to meet customer demand. You can maintain overhead balance by opening later on weekdays and staying open later at night.
• Invite charity groups to provide gift wrapping services for donations. They'll supply the materials and customers service without any cost of time or money to you.

Step up the creative marketing

• Work with your chamber of commerce and other local retailers to create holiday events
• Polish your website
• Use social marketing sites such as Twitter and MySpace to communicate with customers. Be sure to tell your customers how to find you by posting info at your shop.
• Encourage customers to write reviews on sites like Yelp and CitySearch.
• Setup collaborative displays with other retailers in their shops or other places that customers frequent like coffee shops, credit unions, etc.

Bargain Holiday Shopping

Continuing our frightening reality that The HOliDAys are coming...

If it seems that retailers put out the holiday goods earlier this year, well that's because they did. I've heard that one reason was to give shoppers a longer season. Though don't expect that to mean bigger sales. Many retailers have also scaled back on inventory to avoid discounting. Still if you're looking for bargains to keep your budget on track it's time to do some sleuthing.

Non-gifts: Cards, decorations, etc.

• Shutterfly is running holiday specials that ends Wednesday, Oct. 29. For example, buy 50 cards and get 25 free or save 50% on photo calendars.
• Garage sales are a great way to pick up decorations.
• Also check out thrift shops which are loaded with artificial trees and tons of decorations.

Shopping online

• Dealnews gives you bargain prices on a crazy assortment of items from laptops to running shoes and more.
• Don't forget to comparison shop. Spending time can save you big bucks. For quick comparisons checkout DealTime which will give you a range of prices and show you who is charging what.
• Watch your shipping deadlines and fees.
• Try to combine your purchases to save on shipping.

Traditional shopping

• Sales could actually be slim this year so grab one whenever you see it
• Signup for Border's rewards and other retail loyalty programs that offer coupons

And don't forget:

• Whenever you shop have you're list handy. You're more like to overspend than you are to leave someone out if you don't have the list with you.
• Remember the budget. Give yourself a gift and don't overspend this holiday season.

Here's a useful spreadsheet from Credit.com that starts your budget for you and sets up all the categories you should consider.

Have you budgeted for the holidays?

Yes, it's Halloween, but it marks the beginning of your wallet's most frightening event known as "the holidays." There are just 58 days until the big spending season. You've got nothing to fear if you are one of those people that prepares all year long. But for the rest of us, I'll be taking this week to look at ways we can prepare our finances. We'll look at quick ways to set aside some cash and stick to your budget. We'll explore some smarter shopping strategies. You might have noticed that Wednesdays are usually dedicated to small business articles, so we'll take a look at how the holidays affect small biz retailers. I'll give you some ideas for non-traditional gifts that keep giving. And we'll wrap up the week with an appropriate Friday Encore.

Saving up for the HOliDAys

Maybe you might think it's too early to start thinking of Christmas. Or you're nauseated by the appearance of holiday items in the store. I have to ask, "Have you budgeted for the holidays?" Typically the same people who are organized enough to shop early have also budgeted and saved throughout the year. For everyone else this is the ultimate savings challenge.

I just read this article distributed by Kiplinger entitled, "There's Still Time to Save $1,000 for Christmas Shopping". The most unique idea in this article is to Adjust your tax witholding.

The average tax refund last year was about $2,700. If you got a refund, that means you paid Uncle Sam too much money! Keep it for yourself to pad your holiday fund instead. You simply need to change your tax withholding by filing a new W-4 with your employer's human resources department. To find out how many withholdings you should be claiming, try our Easy-To-Use Tax Withholding Calculator. The changes will go into effect on your next paycheck.

The smart thing about this is that by now you've paid your tax dues for the year. Why loan the money to the government? If you eek out 2 months of average witholdings you could put $450 toward your holiday budget. But don't forget to change it back or you'll end up oweing Uncle Sam a bundle the next year.

Other ways to save might sound cliche, but now is a great time to test them out. There are tons of tips on how to be more frugal. Apply just a few and stuff the savings into your holiday budget. Who knows, you may even be able to use these savings tricks in the future and reach your savings/investing goals.

Some other simple ideas:

Skip holiday movies. The movie industry always pumps out their holiday movie fare right about late October. They know that colder nights leave you with less entertainment options. Be creative and you can find plenty of ways to occupy your Friday night and save a bundle.

Split dinner. Eating out doesn't have to reduce your wallet and increase your waisteline. You can enjoy a night out at your favorite restaurant and save money by splitting an entre.

Adjust your daily budget. Gas prices are sliding down for the short-term and chances are that we'll see them rise again. So take the money that you've budgeted for gas and allocate it toward your holiday shopping.

Speaking of the "B" word--Set a holiday budet. Most people overspend for the holidays because they haven't set a budget. So follow these basic steps to keep your spending under control.

1. Review your monthly budget for adjustments to put toward the holidays.
2. Establish a total amount for the season.
3. Make a list of the people you'll be giving to and divide your budget accordingly.
4. If your giving list outweighs your cash flow either cut down your giving list or adjust your spending per person.
5. Avoid borrowing from future earnings by using a credit card. Use your credit card for online purchases and for items that could be insured by the card. Don't use your card to push holiday purchase payments to your 2009 paychecks.
6. Most important-Spend within your means.