This weekend will be important for U.S. retailers. They’ll be counting their pennies carefully. With retail sales already down sharply from 2007, merchants are eager for a strong start to the holiday shopping season.
The day after Thanksgiving — now dubbed “Black Friday” — has become something of a ritualized cultural experience, and one of the biggest shopping days of the year. Many people view the day as a chance to grab stellar deals on Christmas gifts.
But will people be spending this year? With the economy wobbling like a top, will the American consumer come through to prop up flagging retail sales?
The merchants hope so, as do many economists, but a new study from the American Research Group shows that the amount Americans plan to spend on Christmas gifts this year is half what they planned to spend last year, and the lowest number in at least a decade.
If you plan to shop this weekend, check out:
- PC World: The insider’s guide to Black Friday bargains
- Yahoo!: Your ultimate guide to Black Friday 2008
- Price Protectr, which will alert you if the price drops on an item you purchased (in many cases allowing you to get a refund on the difference)
While some of my friends subscribe to the “take the day off to find bargains on Black Friday” school of thought, I’ve traditionally sided with another camp. On the day after Thanksgiving, I observe Buy Nothing Day.
For the past decade, I’ve elected not to shop on Black Friday. It’s one way for me to avoid consumerism. Subscribing to a consumerist mindset helped to put me in debt in the first place. I don’t begrudge others their bargains and shopping fun, but I choose not to participate. This year will be no different.
Ramit at I Will Teach You to Be Rich has taken things one step further. Rather than feel obligated to buy gifts you can’t afford, he says, why not do something different — like spend time with those who are important to you:
I’ve come up with a site that I hope you can share with your friends and family. It’s free, and it’s very simple, but the point is to share the idea that you can do something for the people you love without spending money.
At No Christmas Gifts This Year, you can send customized e-cards suggesting alternatives to buying gifts.
If the idea of abandoning gifts entirely is too extreme for you, consider creating homemade Christmas gifts this year.
Regardless of which path you plan to pursue — Black Friday, Buy Nothing Day, or No Christmas Gifts This Year — please spend responsibly. Buy only what you need and can afford. Don’t be lured into impulse purchases. Avoid debt. And most of all, enjoy the spirit of the season.
GRS is committed to helping our readers save and achieve your financial goals.Savings interest rates may be low, but that’s all the more reason to shop for the best rate.Find the highest savings interest rate from Ally Bank, Capital One 360, Everbank, and more.
This article is about Choices, Economics, Marketing, Shopping
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Great post. I’m doing an almost-entirely homemade Christmas. I’ve told all of our family members that’s what we’ll be doing and I’ve encouraged them to do the same. Like you, I will not be shopping on Black Friday
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Totally with you on Buy Nothing Day. Been celebrating that for more than 10 years. After doing it a few years, even the temptation to purchase something on “Black Friday” (worst misnomer possible, imo) no longer really exists.
We are, however, going to violate BND in one small way this year. Because of schedules, my significantly better half must leave for two weeks (work) on the Saturday after T-giving. We will, therefore, purchase our Xmas tree on Friday from our local tree farm.
Small violation of the ideal, but again, all things in moderation. Extremism is the true root of all evil.
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Buy Nothing Day is an interesting one. Gifts are important and serve a symbolic function as a way to express the relationship between two people. A good gift reinforces that relationship by relying on knowledge of the other person to demonstrate that you know and care for them.
Which doesn’t require Black Friday or an expensive gift. I think we’ve come to use the cost of a gift as a proxy for the knowledge component, saying “we must be friends because he gave me something expensive” instead of “we must be friends because he gave me something that shows he knows me.” The key point is that what you are aiming for is “we must be friends because…”
I’m all for homemade or cheap but accurate precisely because of this. Rather than communicating relationship through expense, do it through cunning and wit – put some real work into choosing a gift that is both knowledgeable and “expensive” in another way (like time). Find out the person’s favorite dessert and bake it for them. Find out what obscure candy they liked as a kid and order it online. Make them a CD of songs from the year they were born, or the year they graduated high school, or some other significant life event.
The list goes on and on. So no BFD, no BND, just simple, practical gifts that aren’t about consumerism or fighting it but just being practical in your living and realizing the purpose behind the gift.
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One of the positive by-products of this financial crisis is that it has awakened many (or forced them) to the idea of “giving from the heart.”
Something that is made with your own hands or a heart-felt letter telling someone how you feel about them or why you admire them will go much farther than a lifeless material object.
“You give but little when you give of your possessions. It is when you give of yourself that you truly give.” ~ Kahlil Gibran
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Our local Goodwill thrift store has 15% off on Black Friday. Perfect way to satisfy the need to buy and also save my wallet and not contribute to the extreme consumerism!
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I also observe Buy Nothing Day–partly because I don’t like the way all US holidays become occasions for shopping, and partly because the experience of shopping on that day always makes me think of the alleged experiment where the population of rats in an enclosed area was allowed to increase until they started eating each other.
I tend to do a lot of my holiday shopping at the grocery store and the hardware store, which means it can be combined with other errands and I avoid the mall.
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I will admit to dragging my preschoolers out at 7 am on Black Friday in search of a particular electronics or craft item on sale. This year it will be for a replacement for our semi-broken second-hand computer, which needs to be replaced before it dies. We’ve been waiting and saving for a good deal.
OTOH, I observe “Stay Away from the Mall Month” between the day following Black Friday until the 12/26 sales start. I can’t bear the crowds at the stores!
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@Sue (#5)
I love that compromise: Goodwill at 15% off on Black Friday. It’s almost enough to tempt me out of Buy Nothing Day. Almost.
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Our TV has been on the fritz for a number of months. My husband has been wanting to buy a new TV for the longest time. I’ve gotten him through the last 6 months by hitting it in just the right way, turning it off for a while to let it cool down, etc. Mostly to hope to try to make it to the holiday season of discount TV’s. I’ll only risk my life on Black Friday if I see a good enough advertisement showing a good sale. Then again, not too many places advertise the smaller tube tv’s anymore.
My family at the end of last year already decided that we would only give gifts to the kids. We’ve all gotten to the point of buying what we want/need throughout the year, then at Christmas we’d exchange gift cards. I’d give my mom $20 to restaurant “x”, and she’s give me $20 to restaurnt “y”. After a number of years of doing this with each person in my family, we’ve decided to keep our own money. The net result is the same.
My brother did meet someone new this year with 2 additional kids. So for that family, I plan on doing homemade care package. They are so busy they don’t have time to bake. So I’m going to bake a bunch of goodies and mail it to them.
Normally, we spend about $500 for Christmas gifts for my siblings families, and my sibling-in-law families, but this year, it should be closer to $100-$200 – even with the new people added.
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I’ve never shopped on Black Friday and I never will. It just doesn’t appeal to me at all. Watching the crazy people fight each other for cheap stuff on the news is entertaining though.
On the topic of Christmas spending, I’ve made deals with nearly all of my friends and family to NOT exchange gifts this year, or if we are doing gifts the costs are going to be very low. I plan to spend probably 25% of what I spent last year.
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I don’t mind black friday per se. It’s a great opportunity to get a deal if you’ve been putting money aside for a major purchase. But I’ve taken so little time off work this year and I’m only traveling on the 27th my reaction is: I’ve taken the day off work and you want me to do what? When? *cue hysterical laughter*
I will be sound asleep in my nice, warm bed. If I feel so inclined I might check a few websites mid-afternoon but otherwise… cold and busy and pushing and shoving aren’t my ideas of a fun day off.
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Great article, J.D. I really like Ramit’s project!
I would prefer not to go shopping on Black Friday, but my fiancee always goes with her mom and sisters and wants me to come along. Doesn’t mean I have to buy anything though
I’m planning on mostly homemade/alternative gifts this year. By alternative I mean something from Heifer International, Samaritan’s Purse, or maybe a Kiva gift certificate. (I’m still getting a feel for Kiva…)
I really wish we could get away from all the consumerism around Christmas and other holidays and get back to something more meaningful. Advent Conspiracy.org has a great little video on their site (it’s on YouTube, too).
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I don’t boycott Black Friday, I just hate shopping and crowds. When the two are combined I stay home. I’ve never understood all the wonderful “bargains” anyway. If I have to stand in the freezing cold all night just to stand in line and get a $200 computer or a $25 IPOD then I don’t want one. Just pay full price, you’ll waste time you could be at work earning money or spending time with your family, just to save a few bucks – no thanks!
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I’ve never been shopping on Black Friday and this year won’t be any different. While I like the idea of getting good deals, I can’t stand the thought of pushing my way through all those crowds all day!
My wife and I have done a pretty good job, I think, of keeping the gift giving to a reasonable level and this year we have alignment on both sides of the family that there will be no gifts for adults!
This is a huge time and money saver as most of the adults in our family can buy whatever they need and trying to guess what somebody might enjoy is a nightmare! Also, if they don’t like it, they feel compelled to display/use it anyway since it was a gift, which is just awkward.
So, just gifts for the kids this year and not too many.
I’m looking forward to some good sales…but I’ll wait until a little closer to Christmas.
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Maybe its too much to hope, but perhaps with the focus off of buying presents for a year, a few more folks will remember that the holidays, especially Christmas, are supposed to about something besides an Xbox 360.
I’ve never shopped a Black Friday nor do I intend to. I can’t stand the crowds. It’s not worth my time.
I figure the bike trails will be wide open!
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After years of my husband and I working in retail we have decided that “Black Friday” is a joke. The door busters are usually in limited quantity and of the worst possible quality when my husband was in customer service people would come back Christmas mad that remote was missing and they technically couldn’t do anything to satisfy the customer because it was not an item they ussually carried so there weren’t any in stock to exchange and nothing was as cheap as what they bought.
The stuff worth buying will be marked down on Wednesday before Thanksgiving with the normal markdowns. No need to fight the traffic on Friday at all
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Paul Williams @ Crackerjack Greenback Says:
November 25th, 2008 at 7:17 am
By alternative I mean something from Heifer International, Samaritan’s Purse, or maybe a Kiva gift certificate. (I’m still getting a feel for Kiva…)
I do like Heifer and have used them for gifts-my mom doesn’t need anything(neither do most of my family)- and really liked the idea of Heifer and the lovely card they send you to send. I also participate in Kiva but haven’t gifted it to anyone- the interesting part of Kiva is that you can choose your particular loanees(?) andfollow the success of the person/people that you “invest” in. Sometimes there are problems- one of the groups I lent money to had weather related problems and might not be totally successful. Kiva got lenders involved- what should be done- we might not get paid back. The responses I saw- like mine- were that however we had helped these people was fine- they were further along than before the loan- if they couldn’t pay back due to causes outside their control, it is how life is. Except in that case, the others I lent to are paying back and I will loan that money again.
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Love your comment about buy nothing day.
Personally, I subscribe to:
Not get out of bed for anything on my day off day.
4A.M. Shopping? Are you crazy?
http://www.101WaystoMagnetizeMoney.com
Christine
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Buy locally! Patronize independent merchants within walking distance of your house. Save gasoline, and keep your commerce $$$ in the community. If you’re the type of person whose heart breaks when a non-chain coffeeshop, clothing store, or book nook goes out of business, this is your time to help these folks out. Who knows, you might even find a gift far more unique than those pushed by the kiloton at the big-box stores. And you’ll spare yourself the parking tsuris!
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I am a black Friday person. Like most who posted I use it to get an item we have been wanting and saving for, for quite some time.One year it was a DVDR/VHS player to move our VHS tapes over to DVD. Last year we went home for Thanksgiving so the great deals I got for family black Friday I was able to leave at home and not pay for shipping.
However this year I am unimpressed with what is being offered and there is nothing that my husband and I want, nor anything I plan to buy a family member. I will be sleeping in.
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I avoid stores at all costs on Black Friday. I can’t stand crowds, and I can’t stand hysterical people trampling each other for yet another $29 VCR. It’s ridiculous. And frankly, the deals aren’t that great! This year I am making gift baskets for friends, with homemade jam, whole wheat breads, and fancy cookies. I am also throwing in some vintage items I handpicked for each of them throughout the year, and some sock puppets made for each of the babies.I’m sure that will do fine.
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I think that people spending less and enjoying the holidays in a more simple fashion can be the silver lining to this enormous cloud. On a personal note, I always thank G-d I am Jewish around this time of year. I can sit out all the retail craziness!(*@&
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Me, I’ll be out Black Friday. Yes, there will be crowds and pushing and shoving, but the thing is, why do all these people go to all this trouble? Personally, I would like to think that people are the same as I am, trying to get something special, for someone you cherish, for cheap
Call me materialistic or what not, it makes me happy whenever I see that smile from the person I give the gift to. Everybody in the world is materialistic anyway, in one way or another…
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The only time I’ve done black Friday as an activity with often visitng friends and family members who wanted to go. I’ve never done the earlybird deals because I don’t want to get up early on a day off, and almost always the deal is not something on my shopping list.
But I’m not good at shopping as an amatuer sport what you see on those days, so I’d rather shop on the internet. You may not have the super great deals, but it is a much more relaxing way for me to shop, out of the shopping frenzy of the holiday malls.
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We decided on our “theme” really early this year (we’re making gift boxes of olive stuff– imported olive oil, fancy olives in jars, olive soap, olive patterned kitchen items, etc, etc, and hand made cards that say “O Joy! O Love! O Live!) so we’ve been buying slowly for months and probably ended up spending almost as much as last year, despite the economic downturn. We were able to buy almost everything (I only had to order the white chocolate with dried olives candy bars) locally and we will be home, maybe doing our gift wrapping, on Black Friday.
I wonder if there will be another stock downturn next monday, as the results of people not shopping start coming in…
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I feel like people who find themselves living frugal lives look down their noses at people who like to buy things. I understand how consumerism can be a bad thing, but the problem I see is people not being able to afford what they buy, not buying stuff. If people want x,y, and z. I’m all for them getting it, just in a responsible way. That doesn’t bother me.
What makes my skin crawl about Black Friday is that it brings out the worst in people. I work retail, so I see people go crazy for the deals. It really is frightening and looks like the beginning of the fall of civilization each and every year. If there was a way to get the deals without waiting outside in the cold for 4 hours or dealing with the crowds, I would definitely partake in some of the sales. But as it stands, I would rather just save up and pay more for what I really want and avoid the craziness.
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Black Friday has become a tradition in our household– at least for us kids. It’s more about the hanging out and bonding (albeit in the freezing cold), but we’ve historically managed to score some pretty decent deals– and in anticipation of that, we save all year.
Normally our pregame routine is pretty set, but this year, however, the products are looking pretty dismal, so we may not even go.
http://renaissancetrophywife.wordpress.com/2008/11/14/black-friday-the-pregame-edition/
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I’m going to have to side with Anne on this one. I understand the idea of not buying anything and “staying away,” but if you’re organized and have planned it right (granted this excludes most of us right away), this is the time to go buy something you were going to get anyway.
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I too, hate shopping and crowd. I only buy gifts when I happened to think of or see something that suits the taste of a special friend. Otherwise I just buy gift certificates or even Visa gift cards. If I receive a gift from a friend and have nothing to reciprocate, I’ll just take the friend out to dinner in the near future. I also like to arrive at a party early to help the host preparing meal, or help friends doing house projects.
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In the past I have looked forward to black Friday as a way to take advantage of sales on clothes and gadgets I want for myself for the next year. Because of the times, I am not going to be participating this year. I always buy the standard presents for the family and will continue to do so. This will I just am not going to treat myself as a way to save that money for another time.
Craig
http://www.budgetpulse.com
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I would tend to agree with Buy Nothing Day in general, however I feel that now is not the time to be doing that. If we all did that, our economy would collapse. I understand anti-consumerism, and I agree with it, but odds are your well-being and that of your friends and family depend on our economy thriving. And to that end, I encourage everyone to spend a little this holiday season.
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as a former retail “associate” all i can say is that day is hell. i will NEVER shop on Black friday, its insane and as are the shopers.
the employees are usually overworked, and the shoppers are exhausetd to make it to the 4 am door buster. everyone is in such the ‘spirit of giving’ it really kills the holiday for me.
i am very intrested to see how this year will turn out profit wise for the companies however…
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I don’t participate in Black Friday, never have. I have a strong allergy to large crowds being a small person. I don’t enjoy shopping that much, and adding chaos to the mix makes it really unpleasant.
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I never shopped on Black Friday only because I prefer to sleep in and enjoy the rest of my long holiday weekend. I’m not a mall or department store type person or someone who lusts after items from such mainstream stores and really want to avoid crowds (prefer online shopping, local stores and boutiques, my partner buys all electronics and computer equipment online) so for me, Black Friday is a day of rest or taking a long holiday weekend trip.
I’m not against it, heck, I own an online retail store and HOPE people buy from me this season so I cant be too against shopping!
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Thank you so much for that link! I’m not ready to abandon all gifts, but I am looking to cut back A LOT, and this is an awesome way to do it! I’m going to post this on my blog as well, and forward it on to everyone in my moms groups!
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This year we’re spending almost double what we spent last year on gifts for Christmas. However, last year we were still working on our debt payoff. Now that’s done, we have additional funds available to buy some more gifts for people we had to skip / skimp last year.
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I have never ever participated in a Black Friday event. Unless … everything in the Apple stored is on sale for 70% off. Well … not really.
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I also hate crowds and the panic attack I would probably have wouldn’t be worth the savings
However I certainly don’t begrudge any well planned conscientious spender from getting a good deal. woohoo!
Let’s see… I already bought my boyfriend’s present (A copy of a new biography of Andrew Jackson) and his birthday present (his birthday is in January) My mom is getting hand knit slipper socks which I need to freaking get started on! And my brother will get season 11 of the Simpsons. I might knit a hat for my dad on Christmas eve, and everyone else is getting cookies, with the recipes for each variety attached.
Oh, and I’m hostessing a ladies holiday brunch the Sunday before Christmas for my girlfriends.
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Skip birthdays not Christmas.
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I will be skipping Black Friday this year, although I will still be buying a very limited (and scaled back from previous years) number of gifts. Hubby, parents, siblings. That’s it. And nothing over $25. Also, I am trying to make the gifts consumable – something to enjoy, be used up and not have to be stored.
But Black Friday, I will be at home with family, relaxing and not running around like a chicken with it’s head cut off to buy something I can’t afford anyways (actually, I use cash and can’t actually do that, but I digress).
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BUY NOTHING DAY ROCKS!!! i’m with you on that JD
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I really question the findings that people will spend half what they spent last year. How many people really know what they spent last year? How many people really plan (and stick to) their holiday shopping budget??
I am sure we’ll see the same articles in January about people paying for the holidays until March.
I’ll be working on Buy Nothing day – thereby picking up some vacation time to use next year!
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I’ve skipped Black Friday for years, but this year I will be with my boyfriend’s family in Oregon, and the plan is to go into Ashland for shopping, lunch, and a movie. I have specifically waited to get a few (small) Xmas gifts so that I can buy them in Ashland. They have a wonderful little main street with all kinds of lovely shops; it makes it much more bearable to handle the BF fray if you’re not at a mall! And of course, if I don’t see any gifts that fit my list and my budget, I won’t buy anything.
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It looks like I’m nearly alone here! I go out for Black Friday every year and I never buy anything (well, rarely).
I go for the sheer craziness of it. Walk into a Best Buy or Walmart to see the best of it. I have no intention of buying anything – all I want to do is see the reactions of the crowds and the retail employees. It makes you feel like you are a part of something.
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Doesn’t this seem contrary to frugality? I mean, one of the “tenets” is to shop around and wait for the best deals… and when the best deals come along, you decide to sit it out “on principle”. Am I missing something?
I understand not wanting to get all mixed up in the crazy crowd, but if you were going to be purchasing things anyway, doesn’t it make more sense to save $$?
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Having lived around the world I have never seen so much consumer craziness as I have on the the derisory day of Black Friday. I’m with you JasonMoran, I love people-watching on Black Friday just to witness the utter absurdity of it all. What I love in particular is when the crowd tries to game which set of doors will be open first. Anyway, happy thanksgiving everyone!
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I live in Canada and to be honest I know so many people that make the trip across the border on Black Friday. Personally I wait until the beginning of January because that’s when I have found the best deals. Anyone else notice the same thing?
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I enjoy driving past BestBuy seeing a long line of people spending the night and freezing for doorbusters that smart shoppers have been buying for the same price or cheaper for several months.
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This year we are also having a simple, somewhat frugal but meaningful Christmas. Here are the things we are doing:
1. No gifts except for 1 “big” gift that my husband and I are buying together and a few things for our doggie.
2. Picture collage (designed by us, printed at http://www.mpix.com ) Christmas cards to all family and friends. We send up to 100 per year. This is important to us so we can keep in touch.
3. I told my family (about 10 people) that my gift fund is going towards a trip I am planning in the Spring to visit my parents. They were supportive. More improtantly, I told them not to send us any gifts.
4. We are decorating our home but only from what we already have. Actually, except for the LED lights because they save energy up to 80%.
5. Any other gifts will be food that I can make and offer to everyone. I don’t plan to give gifts person by person.
6. We do our shopping in January when everything is almost being given away. This is of course for things we need.
Less stressful, frugal and more meaningful…
I admit I do get caught in the madness but I think I am stronger and wiser now.
-Charlotte
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I have never shopped on Black Friday. It really seems like such an ugly day from what I have heard from others who shop on that day. Besides, my extended family gets together on the day after Thanksgiving to celebrate Thanksgiving again since everyone has other families to see. I guess I have never really had to buy things that require huge price slashes for Christmas either (I am not into buying huge presents for people, but I also do not have any kids).
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