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Ho Ho hold on to your milk and cookies!!!  Who’s really behind that jolly laugh and curly white beard?  Well, in most Canadian households, it’s a woman.

According to a recent holiday shopping survey conducted by research firm Synovate for BMO Bank of Montreal, 75 per cent of Canadians polled indicated the female head of the household, or another female in the household, is responsible for the majority of the holiday-related shopping.

Interestingly, perceptions of who does the majority of holiday-related shopping vary between men and women.  Ninety-one per cent of women, married or living common law, stated that the female head of their household does the majority of holiday-related shopping.  Not so, say some men.  In the same poll, only 75 per cent of men who are married or living common law, stated that the female head of their household does the majority of holiday-related shopping.

Similarly, perceptions vary when it comes to who pays the bills after the holiday merriment subsides.  Among those married or living common law, 64 per cent of women but only 36 per cent of men, claim the female head is most responsible for overseeing holiday-bill payments.

The gender gap narrows when it comes to budgeting for holiday gift buying.   Budget-setting is slightly more likely to occur among females and those who fall into middle age groups than among those within younger age groups. Yet just over half of those polled stated that they don’t typically set a budget prior to holiday-related shopping and of those that did last year, nearly half spent more than intended.

“This is a time of year when people allow themselves a bit of excess,” said Maria Racanelli, vice-president, BMO Bank of Montreal. “Understandably, during this period, we tend to focus our thoughts more on the joys of giving than on the drudgery of household finances.”

Nonetheless, cautions Racanelli, early planning and resolve now can help consumers avoid a holiday shopping hangover later when it comes time to pay the piper.

To help customers manage their debt over the holiday season, Racanelli said that BMO has lowered the rate on its personal lines of credit to the bank’s prime rate – currently 4.5 per cent.   The low rate is available until June 30, 2004 when a customer transfers $5,000 or more from high interest credit cards and loans from other financial institutions and advises BMO of the transaction.  This must take place between November 1, 2003, to January 31, 2004.

In addition to the low-rate offer, Racanelli offered a number of tips that could help consumers shop within their means and minimize interest costs on credit card balances and loans made to finance holiday purchases.

“First of all, be a smart shopper,” says Racanelli.  “Develop a budget and stick to it.  Before you shop have an idea of what you need to buy; this will not only save you time, but it will allow you to avoid buying too much or buying unnecessary items that may need to be returned at a later date.”

Racanelli offered additional tips:

One of the most important ways to save money is to lower the interest you pay on your post-holiday spending credit balances. (2 out of 5 polled who anticipate using a credit card for holiday-related spending, expect not to pay expenses off before incurring interest charges.

• If you typically carry a balance or are unable to pay your balances off within the grace period, consider adding a low interest rate plan to your credit card.  Or transfer the balance to a low-interest-rate personal line of credit or a lower-interest-rate credit card. Mosaik MasterCard offers a low interest rate of 7.9 per cent on balance transfers and cash advances and only 12.9 per cent on retail purchases.
• Avoid using higher-interest credit cards and department store cards.  Use a lower-rate credit card for purchases.

Ease your monthly cash demands by consolidating loans and credit card debt into more flexible and lower-rate alternatives.

• After the holiday season, consider consolidating your debt into one loan.  This gives you the benefit of a single, easier-to-manage, low monthly payment.  With a BMO Bank of Montreal Personal Line of Credit you can consolidate a portion of your line of credit and pay it off over a set period of time to help you manage your budget.  Or you can pay off the entire balance at once, if you choose, without penalty.

Take advantage of grace periods or deferred payment periods that help you avoid interest costs.

• Pay off your credit card bills within the grace period to avoid paying interest
• Make sure that you are able to return an item for a full refund if it's not suitable and try to make your returns within the grace period of your credit card (e.g. Mosiak MasterCard provides a grace period of 19 days).  If you do this, the purchase is credited back to your credit card account before interest starts to accrue.
• If you're considering taking advantage of a company's do-not-pay-until-one-or-two-years-down-the-road arrangements, be sure to ask whether or not interest accrues during the ‘no-payment-required’ period. Also, be aware of what the interest rates are and whether or not there are any restrictions or penalties for paying the loan off earlier. Be sure to ask what type of payment is required at the end of the loan. Some programs also charge administration fees up front. Be sure that you are not paying more than you have to.

Even little savings here and there can add up.  Extend your purchasing power with credit card rewards, points or cash back features.

• Consider collecting rewards on your credit card purchases - AIR MILES reward miles and cash back features such as those available with Mosaik MasterCard, exclusively from BMO Bank of Montreal, can save you money or extend your purchasing power.  You can also earn reward miles on the average monthly balance of your Personal Line of Credit.
• If you have been collecting rewards, now might be the time to redeem for merchandise and cross a gift item off your list that you would otherwise have had to purchase.
• If you’re buying for yourself, consider delaying your purchase so that you can take advantage of after-holiday sales.

Other survey results included:

• Approximately 80% of couples state they plan to do holiday-related shopping with their spouse or significant other. The break down is as follows:
  • 43% of couples stated that ‘some’ of their shopping would be done with their spouse or significant other.
  • 25% and 12% of couples claimed that ‘the majority’ and ‘all of it’ will be done with their spouse or significant other, respectively.

• More than half of those surveyed stated they don’t typically set a budget prior to holiday-related shopping.
  • Budget setting is slightly more likely to occur among females and those who fall into middle age groups than among younger age groups, according to the study.

• Of those who set a budget last year, nearly half spent more than intended.
  • 40% reported spending slightly more, 5% a fair amount more, and 3% substantially more than intended.
  • Larger households and those with children are less likely to stay within their budgets, according to the study.

• When purchasing gifts this holiday season, shoppers anticipate spending the largest amount of money on clothes and toys.
  • Nearly one-third of shoppers anticipate spending the largest amount of money on clothes, and nearly one-quarter on toys including video games.
  • Next to these, were personal items such as jewelry, perfume etc. and technology (apart from video games), where approximately 10% anticipated spending the largest amount on each of these categories.

• Shoppers are most likely to spend the largest portion of money on their children.
  • Nearly half anticipate spending the largest portion of money on their children, nearly one-third on family members other than their spouse, and just over one-tenth on their spouse or significant other.
  • Females are slightly more likely to report spending the largest amount on children, and males slightly more likely on their spouse or significant other.

• Nearly 1/3 anticipate using a credit card as their primary method of payment on holiday-related spending.
  • Just over one-third anticipate using cash and one-third anticipate using debit.

• 61% of respondents anticipate at least some of their holiday-related spending will be charged to a credit card.
  • 35% claimed that ‘some’ of their households holiday-related spending would be charged to a credit card.
  • 16% and 10% stated that ‘the majority’ and ‘all of it’ would be charged to a credit card, respectively.
  • Those with a higher household income, those who have internet access, and those with higher levels of education are more likely to charge purchases to a credit card, according to the study.

• Of those who anticipate using a credit card for holiday-related spending, 2/5 expect not to pay expenses off before incurring interest charges.
  • Nearly one-fifth each claimed that ‘the majority’ and ‘some’ of their credit card debt would be paid off before incurring interest charges.
  • Only 4% stated that ‘none’ would be paid off before incurring interest.

• Some indicate that buying gifts is not all pleasure.
  • More than half (53%) agree with the statement:
    ‘I find buying gifts, during the holiday season, to be a necessary chore.’

Synovate’s TeleNation survey consists of 1,000 interviews, half male and half female.  It uses random dialing based upon all published telephone directories in Canada.  Findings are accurate to within plus or minus 3.2 per cent, ninety-five times out of one hundred.

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