By CARLA MORRICAL-FREDERKING

Special to The Hays Daily News

Recent ups and downs in financial markets will likely prompt some second thoughts about holiday spending, but that might not be a bad thing, according to a Kansas State University financial management specialist.

"Spending less may be dictated by the times, but doing so can be good for personal financial well-being and mental and physical health," said Carol Young, with K-State Research and Extension. "Feeling strapped for cash adds stress, while managing money successfully can reduce stress."

Spending less need not put the damper on holiday fun, though, said Young, who recommended making a spending plan and sticking to it to stretch the funds available and eliminate holiday bills in the new year.

Developing a holiday spending plan can be relatively simple, she said.

* Make a list of family, friends and community organizations -- such as a local church or food pantry -- that you wish to remember during the holiday season with a gift. Try to estimate additional holiday expenses, such as extra groceries for entertaining, school and office gift exchanges, out-of-town travel, and postage.

* Review finances before shopping and spending, and ask yourself: "How much can I spend without adding credit card debt?"

"Taking a critical look at your money in/money out can put discretionary spending in perspective," Young said.

She recommended reviewing fixed expenses -- the basics, such as mortgage or rent, utilities, taxes and insurance, car payments, food, medical expenses, childcare, debt reduction (paying off credit cards, for example) and miscellaneous, such as clothing and entertainment, and the balance set aside for an emergency fund.

"Setting a limit on holiday spending and pledging to paying with cash, check or a debit card, rather than using a credit card, typically helps to hold down spending," Young said.

"Paying with a credit card can give shoppers a false sense of buying power," the financial management specialist said. "Cardholders swayed by holiday marketing messages may think of the credit limit on the card as cash available, and spend more than they planned or can really afford."

After the holidays, the additional charged costs can add up quickly when interest and other fees are added, she said.

Thoughtful gifts need not be expensive gifts, said Young, who offered 10 tips to trim holiday spending -- and stress:

* Draw names to spare families (and other groups) pressure to spend.

* Set a limit on gift cost.

* Decide to choose one gift for the family, rather than individual gifts.

* Shop at a thrift store for gently used gifts at bargain prices.

* Initiate a white elephant gift exchange for inexpensive fun.

* Plan a potluck, progressive dinner or less expensive, but still festive, brunch or soup supper to keep down entertaining costs.

* Give the gift of time with homemade coupons for needed services such as washing the car, vacuuming, cleaning up the kitchen, running errands, or helping with the laundry, grocery shopping or a seasonal garden cleanup.

* Skip extras that add expense -- wrapping gifts in the Sunday funnies, rather than gift wrap, for example. Ask children to draw or color on white butcher/freezer paper or brown-paper cut from grocery bags or sacks to hold down extra costs. Use everyday dishes rather than fancy -- and costly -- paper goods.

* Consider passing on family heirlooms and keepsakes to adult children.

* Volunteer to help others. Offer to spiff up an elderly neighbor's front yard or decorate the house a bit rather than purchasing a gift.

Set an extra place or two at the table for friends or neighbors who don't have family nearby. Such food and fellowship makes a special, but inexpensive gift.

More information and tips on money management are available at county and district K-State Research and Extension offices and on the Extension Web site: www.oznet.ksu.edu/financialmanagement.

Carla Morrical-Frederking is the Ellis County Research and Extension agent for family and consumer science.