3 simple ways to stretch those holiday dollars

Fewer dollars and longer shopping hours are on the family budget for the 2009 holiday season, according to different consumer surveys. During December, the average holiday shopper plans to spend $628, which is 20 percent less than average holiday bill of $789 in 2008 and 37 percent less than $996 in 2007, according to a survey from Visa.

But the window shopping meter will run longer, according to Consumer Reports Holiday Shopping Poll. This year, consumers will spend an average of 13 hours looking for gifts, up from 11 hours in 2008 and 2007. Online research and store comparisons are wrapped into the seasonal process.

"Consumers are determined to get as much value as they can for their money these days," said Greg Daugherty, Consumer Reports executive editor. "That means they are willing to put in extra time comparison shopping."

Here are other dollar-stretching strategies:

• Beware of credit offers: Avoid the glitter and hype of seasonal promotional offers for in-store credit cards. Promotional low-interest rates and rewards may tarnish when compared to the long-term financial benefits of nonseasonal offers, said Peter Pham, CEO of BillShrink.com, an online money-saving service. What's more, an introductory rate of zero percent could jump to 20 percent or higher after a single late payment.

• Create price tags: Set a spending range for every person on your gift list and stay within the boundaries of your total budget, says Bob Brooks, host of the Prudent Money Radio Show and author of "Deceptive Money." "Pay cash when possible, and only charge what you can pay off at the end of the month," Brooks said.

• Invest time: Use hobbies and talents to make presents. "Consider something more sentimental that you can make compared to expensive gadgets," Brooks said. Make a deposit in the family memory bank with special events. Ice-skating, festive meals and other non-shopping family activities can enhance the season.

"The recession has caused people to go back to family values as opposed to simply buying presents," explained Toon van Beeck, senior analyst with IBISWorld, a business research firm. "Consumers just don't have the money to fork out on unnecessary gifts and luxuries such as traveling. Instead they'll cherish time spent with close family and friends."

Sharon Harvey Rosenberg is the author of the "Frugal Duchess: How to Live Well and Save Money" — a coming-of-age memoir about money — and a contributing writer in Wise Bread's "10,0001 Ways to Live Large on a Small Budget."