A $199 Nintendo Wii for only $347!

The holiday shopping season is in full swing, so it's appropriate to offer yet another lesson in why shopping with credit is an awful idea and in why you have to be careful when considering what seem like "easy" payment plans.

Today I was in my gmail account and up pops an ad for a web site called AffordIt.com. "Buy a Wii for only $16/wk", it said. I gave it the instant #sideeye and out of cynicism clicked over to see what the rest of the terms were. Here's what I got: AffordIt will give you "low weekly payments" and "Instant Approval" to buy your Wii (and ostensibly whatever else they offer.

The devil, of course, is in the details. In this case, you start by making a $59 downpayment after which you make $16 payments each week for $18 weeks. I'll spare you the time doing the math: it all adds up to $347, nearly double the cost of the same Wii in stores. You'd actually come out better buying the thing all at once, even if you used a credit card, so long as you paid it off before you got hit with too many interest payments.

Oh, and speaking of that: since you'd be buying online from AffordIt, you'd still be putting that $347 Wii on a credit card anyway (unless you used a debit or check card), which means your actual cost could still skyrocket with the added interest you'd be paying your bank.

Folks, if ever there was a lesson in the value of delayed gratification, spending within your means and not trying to take shortcuts, this is it. If you can't buy it outright, you cannot AffordIt.

Frugal gift giving at holiday time

Today's my mother's birthday (Happy XXth, Ma!), which brings me to the topic of gift giving at a difficult time. My mother, like many, has never asked me for a birthday gift but we all know that doesn't mean I don't have to send one. In years past I've gotten her luxuries like that Coach purse and matching wallet she always wanted in her favorite color, or just given her cash because, well, she likes cash.

This year though, the gift was practical: Moms is setting up a gambling counseling practice and needs a book to pass some test for her state certification; sonny boy knows how important that is to her. It's more important, in fact, than an extravagant birthday gift and at a time when things are tight, its a more frugal option for me, too.

All of which brings me to this point: perhaps this holiday season, focusing on more practical gifts -- the things that people actually need instead of big, flamboyant wants might save you a little money. In the comments section, I'd like everyone to post an example of something a loved-one needs that you could give them during the holidays that might save you vs. buying something more exciting or sentimental.

Thinking about it might save a little cash when you need it a lot.