Best holiday plan: Don’t overspend

You can have a memorable holiday season if you create a budget and don’t overspend.

So say South Florida experts whoare urging caution this holiday season despite Floridians having the highest consumer confidence in five years.

“People have to be very careful in their spending,” said Jorge Salazar- Carrillo, an economics professor who directs the Center of Economic Research at Florida International University. “I’m very worried— there’s still anemic economic growth despite high consumer sentiment. I don’t want people to go back into the debt trap— spending more than they can afford.”

He pointed to stagnant South Florida salaries and people saving at a lower rate. South Florida wages have only gone up 1.2 percent in the past year as of the end of September and haven’t kept up with inflation, according to data released this week by the U. S. Bureau of Labor and Statistics.

Still, Floridians were more

confident in October that the nation’s economy will get better in the next year— enough to reach a five- year high in the state’s consumer confidence index, the University of Florida reported. Usually that’s an indicator that purses willbeloosened, particularly in the holiday season when retailers sell themost.

But what may hold back spending this year is that Floridians were not as upbeat last month about their own personal finances, UF’s preliminary report for October found.

Their confidence in their personal finances compared with a year ago fell. So did their expectations of being better off financially in a year.

Florida Atlantic economist William B. Stronge noted, however, that the slips were small and they may not reflect Floridians’ sense of financial well- being. Nationwide, consumer sentiment is also up to a five- year high.

A national survey of marketing retail executives expect a 3.7 percent jump in comparable store sales — the best holiday season since 2007, according to a report released thisweek by BDO USA, a national accounting and consulting group.

South Floridians can have fun this holiday season — just figure out your budget and stick to it, said Christie Hardcastle, the West Palm Beach- based community development officer for CredAbility, a nonprofit credit counseling agency.

“Don’t go into a shopping mall not knowing how much you can spend,” she recommended. “That’s setting you up for disaster.”

Watch out for “deals” during Black Fridays and, indeed, throughout the holiday season that could tempt you to spend $ 100 instead of the budgeted $ 50, she added.

It’s not

really

“saving” you money if you go over budget, Hardcastle said.

Also, beware of being lured into buying gifts for yourself, she said.

You also can save money during the holiday season by cutting back on expensive wrapping paper, cards and decorations, Hardcastle said.

The money you avoid spending on such luxuries will help you afford the presents youwant to give.

The discipline you use now will pay off later, she adds.

Overspending between nowand December leads to many going in for counseling after the new years when some South Floridians can’t figure out how to pay their credit cards bills, said Scott Scredon, CredAbility’s public relation director.