Believe it or not, holiday shopping starts to heat up during the final days of summer. By the time Labor Day rolled around, one in six Americans had already started work on their gift lists.

Shopping early can be convenient. Early shoppers can avoid crowds and spread their holiday budget out over several months. Some holiday shoppers are already out there searching secondhand stores for classic records and books, buying out-of-season clothing and sporting goods at steep discounts and using department store coupons to save money. To get a jump on your holiday shopping and avoid big end-of-year bills, consider the following:

Create a holiday budget early. Start the budgeting process by reviewing last year’s holiday purchases. Be sure to include decorations, food, clothes, stamps, cards, wrapping paper, event tickets, meals out, holiday entertainment and office party gifts. This should give you an idea of how much to allot this year.

Create a spending plan. Divide your budget by the number of months or weeks until the final shopping day and pace yourself. For example, if your budget is $1,000 and you have three months until the holidays, try spending $325 a month. This will make it easier for you to absorb the cost of the holidays and to avoid the trauma of having an extra $1,000 on your January credit card balance.

Know what it all costs. Even if you finish your gift buying early, realize that the holidays involve many more expenses than just gifts. Don’t forget the incidentals such as gift-wrap, shipping, greeting cards, postage, charitable donations and babysitting.

Know when to stop. When you finish shopping—stop! Sometimes it’s hard to resist the “one extra little gift,” however, even small items can add up to be budget-breakers. Three out of every four adults purchase presents for themselves when shopping for friends and family, according to American Express.

The key is to have a plan. It doesn’t matter when you buy as long as you’re smart about it. If basic budgeting skills are followed, savvy shoppers will find themselves sipping eggnog in front of the fire, while the rest of us are battling over the last Spiderman toy.

On Saturday, I attended a clothing swap hosted by some amazing women: @gwenbell, @srslyliz, and @sarahjbray. It was a fun social event that also benefited a great cause—all leftover clothing was donated to a women’s recovery organization. The frugal part of me was thrilled at the chance to update my wardrobe without breaking the bank. But perhaps my favorite part is that it reminded me a little bit of regifting without the guilt!

Since I am obviously a fan, I was happy to learn that clothing swaps are gaining in popularity. If there is no swap scheduled in your area, consider planning your own. Here’s how:

Get focused. The event I attended was focused on women’s fashion, but you could get creative. For example, you might benefit from swapping kids’ clothing, home décor, or jewelry.

Identify fellow swappers. Who would you like to invite to the event? Any like-minded group will do. Consider girlfriends, neighbors, book club members, or your bunco group. If you want a big event, ask friends to invite friends.

Pick a spot. It’s not going to save you any money if you have to provide all of the food and drinks. Instead, ask participants to chip in a few dollars to cover costs or bring something to share. You might also consider holding the event at a location where people can buy their own food and drinks.

Set the ground rules. In your invite (online is fine!), tell people what to expect. At the very least, make sure people know that anything they bring should be in good swappable condition. If your group is full of Type-As, you can also request that each participant bring a minimum number of items to swap.

Create a sense of order. If you’ve ever been to a really great sale, you know that the shopping atmosphere can be a bit frenzied. Setting up tables according to size (small, medium, large) can help people know where to focus their hunt. Bring old grocery bags so that people can easily carry their finds.

Finally, when planning a swap, try not to stress too much about the details. Half (or more) of the purpose is to have fun!

Scenes from Saturday’s swap

As the summer season winds down, the start of a new school year is fast approaching. Every new school year presents new challenges and opportunities. The anxiety of back-to-shopping can be enormous due to the already high unemployment rate and the rising cost of households goods. According to a survey conducted by the National Retail Federation, 49.6 percent of people said they plan to spend less on school supplies. The average family with students from grades Kindergarten through 12 is expecting to spend under $548.72 on school merchandise – a decline of 7.7 percent from 2008.

The best strategy for back-to-school shopping is to start with a game plan. Following is some recession-friendly advice to help stretch your dollars without depriving your kids (like Kim did!)

Look for special promotions. During this time of the year many stores are offering amazing back-to-school sales. Watch out for special promotions such as free-shipping and those “buy two for one” deals.

Do your shopping during “tax free days.” These days usually last for an entire weekend in either July or August (there are still a few coming up!) This is a great time to buy t-shirts, socks, and school uniforms.

Shop at local consignment stores. The end of summer is when many thrift stores are getting great, gently used clothing. These stores offer amazing pricing for quality merchandise. Thrift stores have strict policies for accepting items so you don’t have to worry about buying anything damaged.

Take advantage of Thursday nights. Many department store sales begin on Thursday and run through Sunday. Many of us save our shopping for the weekend, but a trip to the mall on Thursday can produce great savings and you’ll get first rights on merchandise.

Finally, to save on back-to-school shopping it’s important to set a budget and stick to it. With proper planning, you can prepare your children for another school year without breaking the bank.

Note from Kim:
Not to sound cheap or anything (yeah, right), but you could also try playing the waiting game. Supplies that are not truly needed those first few days are bound to get cheaper after the school year gets underway!