Dear Mary: Do you have any suggestions for less expensive Christmas gifts? I want to buy gifts for my five college-aged kids, but I want to cut down on the cost. I usually spend between $75 and $100 on each of them. I want to stay within a budget without being a Scrooge. -- Mary H., e-mail

Dear Mary: Retailers are very worried this holiday season about the state of the economy. They are planning unprecedented tactics to attract shopping dollars. Here's the way to do your Christmas shopping for half the price this year: Let's say you set your budget at $75 per person. Now let's say you find a beautiful sweater in your daughter's favorite color and exact size. The regular price is $75, but it's on sale for $37.50. That's a $75 gift. No one needs to know that you bought it for half the price. Take advantage of all the bargains by letting the retail price be your guide, and let the real price soothe your wallet.

Need more ideas? My book "Debt-Proof The Holidays" is packed with ideas for gifts and so many ways that you can make the holidays memorable this year.

Dear Mary: I retired after 20 years with my most recent employer. My company's safest investment selection for my 401(k) was a Vanguard money market fund. There is now a notice on the Vanguard Web site that states, "You may lose your money in this fund." Our life savings are in this fund. Both of the companies I expect to get pensions from may be headed for bankruptcy. My wife and I worked hard for 45 years and saved our money. I'm not sure our life savings are safe. Is the government backing money market funds, such as that Vanguard fund, or should I take all my money out and put it in a Federal Deposit Insurance Corp.-insured bank right away? -- Withheld, e-mail

Dear Mr. Held: There is no such thing as a completely guaranteed safe place for your money. Even if you took your money and stuffed it in a shoe box under your bed, you still would have the risk that it could be stolen or that it could lose its spending power through inflation. The best you can do is limit your risk.

Until recently, money market mutual funds, such as yours at Vanguard, were not insured by the federal government. However, in an effort to quell fears, the government made insurance available for money market funds that are not held in banks. You need to call Vanguard to see whether they are in the program. If they are, keep in mind that this is a temporary provision. We are not sure how long that insurance will be available. Money market accounts held in banks that are FDIC-insured are insured automatically for up to $250,000.

Should you move your money from Vanguard to your bank or spread it between a number of banks (depending on how much you have)? I cannot tell you that because I am not a financial planner. What I can suggest is that you weigh the consequences of such a move. You are limited to $250,000 of insurance per bank if you move money to a savings account. Depending on your age, you may be hit with a big penalty and taxes if this is seen as an early withdrawal from a tax-deferred retirement account. I strongly suggest that you buy a few hours with a qualified tax and investment counselor to discover your current level of risk and the options you have.

Do you have a question for Mary? E-mail her at mary@everydaycheapskate.com, or write to Everyday Cheapskate, P.O. Box 2135, Paramount, CA 90723. Mary Hunt is the founder of DebtProofLiving.com and author of 17 books, including "Debt-Proof Living." To find out more about Mary and read her past columns, please visit the Creators Syndicate Web page at www.creators.com.
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