Photo courtesy of krisandapril

We have recently attended a number of weddings, birthday parties and other celebrations.  With little time to shop for gifts we resorted to giving cash or gift cards in most cases, but from now on I think I’ll opt for simply giving cash.  Here are a few reasons why:

• Cash can be spent anywhere.  Unlike gift cards to specific stores, cash can be spent anywhere.  I always appreciate receiving a cash gift because I spend it in whatever manner I want.  Gift cards and gift certificates do not provide the same flexibility.

• Cash can be used for things other than spending.  Depending on what stage you are in of your financial turnaround, it might make sense to hang on to the cash gift, or use it to pay down debt.  In the past I have considered selling gift cards on eBay (for slightly less than face value) just to get the cash value to apply towards other goals. Newlyweds may be particularly appreciative of cash gifts to cover honeymoon expenses.  In fact, cash has become such a popular wedding option in Israel that couples are renting ATMs that allow wedding guests to transfer a sum of money in the newlywed’s bank account with the swipe of a credit or debit card.

• Gift cards may get lost. I am notoriously bad at keeping up with gift cards, and the remaining balances. If I toss the cash gift in a separate envelope I know exactly how much of the gift is left by simply counting the money.  That’s a lot easier than calling a 1-800 number and wading through a sea of voice prompts.

• Giving cash to kids helps reinforce spending lessons.  It is true what they say, spending with cash hurts.  When you hand over that $20 bill you got in your birthday card and get three pennies back it registers.  When you swipe the same amount on a gift card it just doesn’t create the same kind of mental lesson of separating you from your money.    What a better time to reinforce this lesson than when kids are young.

• Gift card balances are rarely fully redeemed.  Of course, this is primary reason retailers offer gift cards.  Unused portions of gift card sales eventually add to the company’s balance sheet.  Best Buy compiled its gift card redemption statistics and found that of its unused gift card balances, the average card had been held and not redeemed for about 2.2 years.  It’s probably safe to say the majority of those balanced will never be redeemed.

• Some gift cards and gift certificates expire with little warning.  I gave my wife a gift certificate for a day at the spa a couple Mother’s Day ago, along with the promise of keeping the kids out of her hair and letting her enjoy a day of pampering.  It was a while before we scheduled the spa day, and were disappointed to find out the gift certificate had expired the month before.  Fortunately, after talking with the spa owner she was still able to use it, but it made me recognize that if I had simply paid for the spa day on the day she visited we would have not had to worry about expiration dates.

Would you rather receive cash or a gift card?

Photo courtesy of ZaptheDingbat

No money post today as I plan on spending some quality time with family, and helping tend to one of our kids who came down with nasty round of flu over the weekend.  I’ll be back tomorrow kicking off a “mini-series” on money and relationships that will run for the remainder of the week.  Should be a lot of fun!

Hopefully many of you are able to enjoy the Labor Day holiday by spending some time with your families.  My daughter asked why Labor Day was created and I didn’t really have a good explanation, but thanks to a little surfing I came up with The History of Labor Day at the Department of Labor’s website.  If you are interested in learning more than you ever wanted to know abut Labor Day, check it out.

With less than 200 days (185, to be exact) until Christmas it is comforting to know that our budget debacles of previous years will not repeat themselves. For the last several years, the weeks leading up to Christmas were often spent hunting last-minute gifts while trying not to disrupt the delicate balance of our household budget. In the early years of our marriage we frequently turned to credit cards to foot holiday bills, but fortunately we recognized that was not a sustainable habit for financial success. For the last few years we have budgeted small amounts from the paychecks leading up to Christmas, but that means several trips to stores or rounds of online buying, and doesn’t exactly help spread Holiday cheer.

Christmas Savings Fund to the Rescue

A couple days after Christmas last year we decided to do something that up to that point we had never been able to do–save for an event and not touch the money for another purpose. We opened a savings account at our bank (I have since moved it to ING Direct–here is one of my ING Direct reviews), and scheduled transfers in the amount of $25 per paycheck, or $50 per month, to our “Christmas Savings” account. Next year, when we are ready to do our Christmas shopping, we will transfer the money to our primary checking account and take care of all our Christmas gift purchases at once.

What About Left-Overs?

If you are as frugal with your gift purchases as you are with your own purchases throughout the year, you will likely have some amount left over in your Christmas savings account. With these surplus funds you could get a head start on funding next year’s Christmas savings account, make an extra payment on debt, send a little to the kids’ college funds, or my personal favorite–give it away to someone who needs it more than you.

After reading the inspiring book about the life of Larry Stewart, Santa’s Secret, our family is beginning a tradition of giving away $100 to a complete stranger during the Christmas season. This year, we are planning to go out for breakfast on the morning of Christmas Eve and leave a $100 tip to our server. You never know what kind of impression such a random act of kindness may have on someone, and their family. Imagine a struggling single mom working at a Waffle House on Christmas Eve, wondering how she will fill the stockings for her little ones at home. That $100 could mean the difference in her kids continuing belief in the spirit of Christmas, or disappointment on Christmas morning. For us, that is what Christmas is all about!

When the temperatures outside is approaching 100 degrees it is hard to even think about Christmas some six months away. However, now is the perfect time to start planning for the expense! By spreading out the costs of presents and gift-giving throughout the year, you will feel less of a pinch around the holidays and be able to enjoy a debt-free, worry-free Christmas season.

photo by: krisdecurtis

A lot of news circulating today about the upcoming election, high gas prices, the economy, and of course, National Doughnut Day.  Many of us are so wrapped up in our busy lives we have forgotten that today marks one of the most historic invasions in American military history, D-Day.

On June 6, 1944 over 150,000 Allied forces stormed the beaches of Normandy, France.  Their mission for the day was not to push Germany out of the country, nor was it to secure the beachfront, it was merely to land.  You see, the very act of setting foot on occupied France was itself a minor miracle.  Can you imagine the logistical effort required to land 150,000 infantry and paratroopers, along with some 30,000 vehicles?  It was a massive undertaking, and a costly one.

More than 5,000 American troops were killed or wounded, as were thousands of other members of the Allied forces.  Take some time to remember all of those who paid the ultimate price for the freedoms we enjoy today.  It is a also a good time to remember those who are currently serving home and abroad, and particularly those in harms way fighting in Iraq and Afghanistan.  Put aside your political views for just one day and be thankful there are men and women willing to lay down their lives for this great country we call America.

If you liked this article, please consider subscribing to Frugal Dad for free via RSS feed or email delivery. Subscribers also receive my free eBook, The 7-Day Turnaround!

photo by Doolittle1989

I just completed my annual Mother’s Day ProFlowers.com order and thought I would pass along some deals to my readers. As a frugal son and husband I’ve never been much for flower delivery because florists tend to tack on outrageous delivery expenses just so a stranger can deliver flowers to your loved one. So, a few years ago I started using ProFlowers for special holidays such as Valentine’s Day, anniversaries and of course, Mother’s Day. I order the flowers and have them delivered to me, and then I arrange them and present them to my loved one. I think it makes for a very personal touch.

ProFlowers operates an interesting business model. From ProFlowers website:

Our Provide Commerce marketplace is a proven e-commerce platform that consistently delivers fresh, high quality products direct from the supplier to the customer. We believe that the distribution chain for perishable products, including flowers, premium meat and fresh fruit, is particularly well suited for a technologically enhanced and compressed supply chain that more efficiently connects customers with suppliers. By using our platform, customers receive a higher quality, fresher product at a lower price point, and suppliers receive significant benefits through improved profitability, expanded customer reach and better cost management.

The fact ProFlowers can have orders from the grower to your doorstep in a matter of a couple days is an amazing logistical feat. In the past, many of the flowers I received were just beginning to bloom from bulb form - helping the flowers last for a longer time and providing a unique experience to actually watch the flowers bloom right in front of you.

Mother’s Day is one of the busier times for florists, including ProFlowers, so get your order in soon and select one of the Mother’s Day delivery options (a flexible delivery option will allow delivery on the Thursday or Friday before Mother’s Day, while a Friday delivery guarantee is available for a small surcharge).

Top Mother’s Day Deals at ProFlowers.com:

• Send Mothers Day flowers from $19.99 plus FREE vase at ProFlowers!
• Save $10 on 20 Assorted Tulips for Mom, Only $29.99 at ProFlowers!
• Save $10 on Deluxe Mom’s Delight plus FREE glass vase, Only $39.99 at ProFlowers!

Valentine’s Day is right around the corner. Do you have your frugal gift giving list in order? Saint Valentine sure had it in for us guys when he decided Valentine’s Day would fall on February 14, less than two months after Christmas. It is a rare occasion when frugality and romance mix, but why not make this Valentine’s Day the year to celebrate frugally with some low-cost, romantic gift ideas. Warning, this is an area where frugality could be harmful to your health, so be sure you are giving these gifts from the heart, not just to save a buck.

Homemade coupon books are an inexpensive way to show your appreciation for loved ones. The design is not as the important as the content here, so don’t fret too much over the type of paper to use, the cover design, etc. Spend your time and energy brainstorming ideas and activities that really make your loved one happy. In a small booklet format, start listing those ideas, one per page. On Valentine’s Day present the homemade coupon book along with the promise to fulfill the coupon when presented. Here are a few ideas that may provide some inspiration:

• Good for One Free Car Wash
• Dad Takes the Kids For One Day
• A One-Hour Massage
• Dad Does the Cooking for One Week
• One “Chick-Flick” Date Night
• Get Out of Doing Dishes for One Week
• Spend One Week With No Television (not eligible for redemption during football season)

Plan a picnic. In some parts of the country the weather is nice enough to plan a picnic by February 14. If not, bring a coat and go anyway. Besides, cold weather usually resorts to snuggling, and that’s a good thing on Valentine’s Day. Pick up an inexpensive basket at a flea market or craft store, and prepare an assortment of your loved one’s favorite snacks at home. The menu could be as simple as some fine cheese with crackers, or homemade mini-sandwiches and a small dessert. A quick search for picnic menu ideas yields some great results. Top it off with an inexpensive bottle of wine, or your beverage of choice. Don’t forget at least two blankets (one for the ground, and one for her). Make this a surprise and add to the suspense. Load up the picnic basket ahead of time and then tell your Valentine to dress warm for a surprise date.

Take a day trip. Schedule a vacation day from the office and surprise her with a short day trip to a regional attraction. Make it a fun date - maybe a visit to an aquarium, musuem, or even the zoo. Plan ahead by ordering tickets in advance, and be on the lookout for any merchants that offer deals if you buy from them (your Valentine doesn’t have to know). Plan to eat lunch and/or dinner before visiting the attraction because food at entertainment venues is nearly as expensive as movie theatre candy.

Bottom line, it is true what they say - it is the thought that counts. You don’t have to go broke showeing your Valentine with overly expensive gifts to show your love for them. In fact, gifts from the heart usually mean more to the recipient than something bought at a store, at least they do to us frugal dads.

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