Have a merry, debt-free Christmas - Money Talk$

YOU can have a merry, debt-free Christmas by following a few common-sense rules. The first thing to do is set a limit on how much you plan to spend overall for the holiday, says Cheryl Broussard, CEO of Cheryl Broussard & Co., Inc., an Oakland, Calif.-based financial and small business consulting firm. Once you know how much you want to spend, make a list of who is to receive gifts and how much to spend on each person.

As early as possible, open a special savings account if it's difficult to come up with enough money for Christmas shopping. Dan Young, an American Express manager in Wilmington, Del., suggests setting realistic spending and saving goals. For example, plan how much you'll need to save each pay period to have $1,000 by Christmas.

To make sure you're not wasting money on gifts your friends and family don't want, ask them to suggest three or four possible gifts, Broussard says. Then buy something they suggest that's in your price range.

Parents should tell their children to pick the top one or two things they want most. The children might get several smaller gifts, if the budget allows, but the children should be taught to prioritize, Young says.

When you do go shopping, take your list along. "Without a list you might buy for yourself and not think about why you are there," says Broussard, a registered investment advisor.

Start shopping as early as possible to avoid rushing to get gifts and not having enough time to compare prices. Young suggests buying presents throughout the year.

"This year we'll see a lot of great sales because of the economy," says Broussard, author of Sister CEO, The Black Woman's Guide to Starting Your Own Business and What's Money Got to Do with It? "There is no reason for anyone to pay retail."

Shop owner Marchel'le Barber agrees that people don't necessarily want expensive gifts for Christmas. "They want something that lifts them up and illustrates love, not wealth," says Barber, who owns Martha's Crib just outside of Chicago.

"African-Americans are trying to save money and are more investment-conscious," says Barber, who sells Black memorabilia and arts and crafts. "They want gifts that last more than three weeks and are good all year-round. They want gifts that show appreciation for what they have."

Broussard says shopping with cash instead of a credit card limits the chance of overspending. But if you do choose to shop with a credit card, use only one so that your purchases aren't spread over different cards and so there is a clear record of how much was spent, Broussard says. The best kind of credit card to use is one that has to be paid in 30 days without interest so that you won't spend more than you can pay off.

Young has several other gift-giving ideas to save money. He says consider exchanging handmade arts and crafts and baked goods as gifts. They will mean more and cost less.

Family members or friends can chip in on a group present so that one person doesn't pay the whole cost.

Contributing money throughout the year to a college savings plan, known as a Section 529 plan, will make a useful gift when you present a certificate at Christmas that shows how much was saved that year. Investing money in a stock market certificate that matures in one year or less will make a great gift as well.

But the best way to have a debt-free Christmas, Young says, is to stress the idea of what Christmas is really about. "It's not just about [giving and receiving] gifts," he says. "Think of Christmas as a holiday for family and friends to be together."

More tips on avoiding a Christmas spending hangover

* Buy food in bulk when planning a party.

* Set aside money for shopping and impulse-buying.

* Don't forget your regular expenses.

* Small credit card payments are better than none.

* It's the thought not the amount that counts.

* Estimate the cost of gifts, food and decorations. Add extra for unexpected expenses.

* Make gift baskets, cards and decorations.

* Look for sales throughout the year.

* Use a card with a low interest rate.

* Repay credit card debt before getting charged interest.

* Use a debit card because it doesn't charge interest but takes the money directly from your checking or saving accounts.

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