A SIMPLER HOLIDAY


With only 30 days until the Christmas gift exchange, the economy is wreaking havoc on many people’s holiday plans

By Kristine Gill

kgill@vindy.com

YOUNGSTOWN

The Klink family might have to invest in bandages this Christmas.

Tina and Al Klink of Fredonia, Pa., have cut back on their holiday spending the past few years, and part of that includes buying a cheaper tree.

“You can get the fancy kind that doesn’t hurt your fingers, or you can get the ones that hurt your fingers,” Tina, 41, said. “We get the cheapest tree.”

The couple has also stopped hanging Christmas lights outside their home to save on their electric bill. This year, like every year, Tina has set a price limit for gifts on her two teenagers.

TIPS FOR TRIMMING SPENDING

Be smarter with your spending. Watch for sales. Compare prices between stores.

Look for price-matching policies. Some stores will match, or even beat, a competitor’s prices.

Make a spending budget and stick to it.

Don’t shop for yourself while shopping for others.

Use credit and debit cards with care.

Reduce the number of or eliminate sending Christmas cards.

Source: Federal Trade Commission

“They call me cheap, but I’m thrifty, not cheap,” she said, adding that she was laid off in 2008 and is looking for a job in Ohio.

This holiday season marks the third since the 2008 stock market crash and the recession that followed. With 30 days left until Christmas, families like the Klinks continue to look for ways to trim the tree and the budget.

Rick Mang, 58, of Niles was laid off in August after 29 years at Niles Building Products. While he’s already learned to cut back on spending for his two children, ages 24 and 29, he’s still hanging lights this year.

“Oh I never decorate less,” he said. “You never hold back on decorating.”

Denise Narcisse, a professor of sociology at Youngstown State University, said spending used to signal high social status, but times have changed.

“Nowadays there’s a stigma associated with public displays of incessant spending,” she said.

Narcisse said many turn to religion during tough economic times as a way to understand their hardships.

“Sometimes it’s very difficult to explain in non-religious terms how a person can go to school, work very hard for many years on the job and lose his or her job, so people will turn to religion,” she said.

In one of her classes, Narcisse was surprised to learn that many of her students still donate to others in need.

“I was so proud of my students,” she said.

Second Harvest Food Bank of the Mahoning Valley is serving more people this year with an increase of 1,000 individuals served per week compared with last year.

“This is a result of people just exhausting any and all resources that they have,” said director Mike Iberis.

“It’s not something they want to do; it’s something they have to do.”

Iberis estimates that the bank will distribute 8 million pounds of food this year, up from 7.4 million pounds last year.

“This Valley responds when they know people are hurting,” Iberis said. “They will step up to the plate either volunteering or donating money or food.”

Such was the case this week at Warren Family Mission, a pantry that receives food from Second Harvest.

Director Anthony Montevideo said the pantry collects turkeys to hand out to families each year, but had only received 56 of the 400 needed two weeks ago.

A public plea brought in about 1,000 turkeys this week thanks to a few major donors including Eric and Regina Rebhan, owners of Warren Fabricating, who donated 350 turkeys at $3,000 and an additional $7,000 worth of trimmings.

“Everybody came through,” Montevideo said.

In general though, mission donations from individuals declined this year.

“We have a lot of people donating money, food and clothing, but we’re seeing a reversal,” Montevideo said. “Those people are now out of work.”

Bob Hannon, president of United Way of Youngstown and the Mahoning Valley, said donations continue to come in, but not high amounts.

“While the money coming in may be less, the number of donors is up,” Hannon wrote in an e-mail.

Reverend Monsignor Michael Cariglio of Our Lady of Mount Carmel believes people benefit spiritually when money is tight.

“Everybody is saying we are taking a more simple approach to the holidays and the way we spend,” he said. “I think by doing that, it focuses on the real reality of Christmas.”

While attendance has held steady at his parish over the past few years, his congregation has been more giving lately.

“They never say no to the cry of the needy,” he said. “They’re giving more now for the needy than in the past, so we’re very fortunate. I know that’s not the case across the board.”

Pastor Kenneth Donaldson of Rising Star Baptist Church said his church has also seen steady attendance and donations from people who typically donate. Regardless of how tight money is, he notices that many people still buy into the holiday spirit.

“People will probably continue to spend unfortunately,” he said.

The National Retail Federation is predicting an increase of 2.3 percent in this year’s holiday consumer spending, which includes November and December. That’s up from the 0.4 percent increase last year and the 3.9 percent drop in sales in 2008. This year’s projected increase still lags behind the 10-year average increase of 2.5 percent.

Kathy Grannis, NRF spokeswoman, said consumers reported they would spend $689 on holiday-related items this year. That figure is up slightly from $682 last year.

“We’re slowly getting back to where consumers feel very comfortable spending on themselves as well as on gifts for others,” Grannis said.

Evan Reese, owner of Meander Hill, a furniture and home accessory shop in Youngstown, said his business has held steady in the past few years, but fell a bit when the recession hit.

“We usually do pretty well,” Reese said. “The last couple years, we’ve definitely been down.”

Reese has noticed some consumers buying conservatively and others “going all out” with Christmas decorations. “People probably hold onto their money a little bit,” he said.

Victor Russell, the Warren regional manager for Consumer Credit Counseling Service, said budgeting will prevent overspending during the holidays.

He recommends taking a look at what you spent the previous year, and to factor in all holiday expenses on things including cooking and baking ingredients — and even postage for those Christmas cards.

“Work with family on just pulling names from a hat instead of buying for everybody this year,” he suggested.

The National Foundation of Credit Counseling predicts that 70 percent of consumer purchases will be made with cash or debit cards this season, which Russell said usually indicates less spending overall.