Plan now for your holiday purchases

More than three months of shopping days still separate us from the winter holidays. But Bankrate.com recommends that you get your finances ready now to avoid building up debt during the gift-giving season.

First, prepare a budget. Estimate your expenses last year for gifts, cards, decorations, food and other holiday necessities. If you saved those receipts, tally them up for accuracy. Based on those estimates and your current finances, figure out what you intend to spend this year.

Then, make lists of your gift recipients and specific items to buy. The Federal Trade Commission recommends this as a way to keep track of your spending. It’s easy to get swept up in the spirit of the holidays. But by planning in advance, you’ll make it easier to spend wisely and focus on things you need.

Next, create a plan for holiday saving. You don’t want to accumulate credit-card debt by charging all your holiday purchases. Start cutting back now where you can — pack lunches instead of eating out, or skip your morning stop at the coffee shop. Earmark the savings for the holidays in a separate bank account.

Finally, select one credit card for your holiday purchases. Consumer Reports recommends that you limit your holiday credit-card charges to items that require future action such as installation, alteration or repair; big-ticket purchases; items that will be delivered after you pay; or items that might break. By buying them on the card, you have a paper trail if you need it.

To find a credit card that works for you, visit http://www.creditcards.com/, http://www.credit-reviews.com/ or http://www.creditcarecenter.com/. The sites allow you to search for and compare available credit cards.

Beware of fake memorabilia

As the World Series draws nearer and the football and hockey seasons begin, many fans will want to buy some sports memorabilia, especially a poster, card or ball bearing signatures of sports stars.

But there is a danger of buying a forgery. Sports memorabilia is an unregulated business with sales of more than $1 billion per year. After an investigation in 2000, the FBI reported that half the items of sports memorabilia on the market are fakes.

Here are some tips to help you get what you pay for:

Take extra care when buying memorabilia of “hot” athletes who have recently enjoyed successful seasons, such as New York Yankees shortstop Derek Jeter or New England Patriots quarterback Tom Brady. Often con artists exploit high-demand names and flood the market with forgeries.

Certificates of authenticity are no guarantee. Anyone with a computer and some time on his or her hands can create documents that look real. A certificate is only as good as the person who signs it. Find the companies that enjoy the best reputations in sports memorabilia and look for their certification.

Helping the elderly

As people live longer, more middle-aged Americans are finding themselves helping older relatives manage their money. Taking financial responsibility for someone in fragile mental or physical health can be both a personal and fiscal challenge.

Geriatrics experts say it’s important to understand that many older people don’t like the idea of giving up control of their money, even if they need to.

The American Association of Retired Persons has the following advice for caregivers who find themselves in the position of paying a sick person’s bills:

Make a list of the relative’s sources of income that can be used to cover expenses, including Social Security, IRAs and pensions. This may require communication with the person’s accountant, broker, lawyer or financial planner.

Set up a joint checking account and request that copies of the statement be sent both to you and the relative. To do this, you may need to secure a power of attorney.