Suze Orman Money Matters

So with the biggest shopping day of the year (Friday, November 25) just around the corner, I thought it would be a perfect time to arm you with some helpful tips to keep in mind as you're browsing the aisles.

1. Avoid retail gimmicks.

If you've set foot in a shopping mall lately, chances are you've seen the signs: "Buy Now, Pay Later!" and "Buy One, Get One Free!" and "Big Markdowns!"

As tempting as it is to think you're getting a good deal, keep in mind that retailers employ armies of MBAs and advertising geniuses who make their careers by driving us to spend, spend, spend. And this is the time of year when they cart out all the tricks of their trade. To protect yourself from these gimmicks, remember two things.

First, don't pay for today's purchases with tomorrow's peace of mind. If you can't afford to pay for a gift outright, you probably shouldn't buy it. Maybe you're thinking you'll have the money in June to pay for your holiday purchases. Maybe you will; maybe you won't. What if that planned raise doesn't come through? What if you get laid off or have an unexpected emergency?

Second, focus on the current -- not the original -- price. A sweater that was priced at $300 and is now $150 still isn't a good deal if you can't afford it.

2. Check your balance before you buy.

Hopefully your credit card balance is zero. If that's not the case, your goal for the holiday season is to refrain from adding a single penny to the unpaid balance.

This is doubly important this season, given new rules in how your minimum monthly balance due is calculated. At the urging of federal regulators, credit cards that previously made you pay a monthly minimum of just 2 percent of your balance have now increased that minimum to 4 percent. Based on the average credit card balance (about $8,000), that's a jump from $160 to $320 a month -- not to mention interest.

In the long term, this means you'll pay your balance a lot faster, but in the short term you need to deal with the fact that your required minimum payment just doubled and spend accordingly.

3. Understand the true cost.

Let's say you spend $1,000 on gifts this holiday season, and it all goes on your credit card. You have no way of paying off the balance, so each month you just make the required minimum payment.

If your card charges 15 percent interest, your $1,000 spending spree could end up costing you $1,392. That's $392 down the drain.

I can't resist pointing out that if you instead took $392 and invested it for 20 years at an average annual return of 8 percent it would grow to $1,827. So, by putting all those charges on your card, you not only stand to lose $392, but also the opportunity to make $1,827.

4. Don't forget the heat.

The cost of staying warm this winter is expected to be drastically higher than last winter.

If you use propane to heat your home, you can expect to pay 30 percent more for it this year, according to figures released by the Department of Energy. If you use oil, you can expect to pay 32 percent more. And natural gas consumers can expect to pay a whopping 48 percent more.

One estimate says that energy costs may eat up to 20 percent of Americans' take-home income this year. That doesn't leave a lot left over for stocking stuffers.

Now, I'm not suggesting you morph into the Grinch -- just that you spend within your limit. If you don't properly budget for heating costs, you may be forced to throw another fruit cake on the fire to keep warm.

Above all, I sincerely hope you're able to reconnect to the true holiday spirit this season. It is truly better to give than receive, but that was never meant to mean material gift giving. It's about opening your heart and giving of yourself. That's not something you'll find for sale in any store.