By Jason Alderman

When it comes to holiday spending, waiting in store lines all night and jostling for discounts will mean very little if you don't have a budget that shapes your finances year-round. With the average U.S. household spending $600-$700 in 2014 for the holidays, putting that money together shouldn't be a game of chance. Here are some tips to get it right:

1. Before you make a list, plan. How's your debt? Do you have an emergency fund or any savings put aside? Start the holiday season by getting a handle on what you owe and what you're spending day-to-day. Then plan a holiday budget (www.practicalmoneyskills.com/YourHolidayBudget) as early as possible that allows you to spend wisely.

2. See what spending is really necessary. It's tough to cut young kids off a gift list, so turn to the adults. If your finances are limited, it's worth asking adult friends and family members if they'd consider a gift swap or forego gifts altogether. They might actually think it's a good idea.

3. Attack your everyday expenses. Want to afford the holidays? Consider evaluating some expensive habits. Try reducing the amount you are spending on expensive nights out. Cook at home and bring your lunch to work. Use public transportation. Compare and cut your auto and home insurance premiums. Turn down the thermostat, dump magazine subscriptions, gym memberships and any other budget item you're not using. You'll find that savings build quickly.

4. Browse before you buy. Assuming you've made a tight gift list, create a gift budget (www.practicalmoneyskills.com/YourGiftLog) tracking precisely what you're willing to pay for every item. For must-have, non-negotiable gifts, you may have to pounce before Thanksgiving Day and Black Friday and Monday for both price and selection. Also, don't forget to budget for holiday entertainment www.practicalmoneyskills.com/EntertainmentPlanner). It's a potentially huge cost. Plan ahead and don't waver.

5. Create your own Holiday Club. Online savings and money market accounts can allow you to set aside your holiday budget in small amounts throughout the year and they'll pay better rates than the last few banks offering Holiday Club savings accounts.

6. Watch gas and shipping. Smart shoppers weigh the value of store trips versus online shopping. They also keep an eagle eye for advertised online and shipping discounts. Sign up for special deals and coupons, consolidate in-person trips to stores and make sure you review return policies at online and bricks-and-mortar stores before you buy. Paying return fees or missing a window to return a gift entirely can cost big money.

7. Keep good records. Whether you track your finances on paper or on a computer, develop a system that allows you to match your holiday list to what you spend every year. Good recordkeeping not only allows you to track the numbers, but also prevents you from duplicating gifts or overspending year to year. And it's always a good idea to keep a list of what you get from others to make sure you're thanking people appropriately.

Finally, consider whether it's worth making new holiday traditions that go beyond gift giving. Some families consider contributing throughout the year to a joint vacation or reunion fund to bring everyone together. You might also consider the needs of aging or needy relatives who need assistance with chores, transportation or pet care. The holidays are what you make them.

By Jason Alderman

Calculating income taxes is a royal pain, even when your situation is uncomplicated enough that you can file a 1040EZ Form. And if you're self-employed, be prepared for extra layers of complexity. Not only must you file an annual return with numerous additional forms and schedules, you're also responsible for paying quarterly estimated taxes, which can mean having to write a pretty hefty check while waiting for your clients to pay their overdue bills.

Add in that you're also responsible for funding your own health insurance and retirement and you may start to miss having an employer manage a portion of your financial affairs. (Although many people go into business for themselves precisely to call their own shots.)

Here are a few things to remember when calculating your 2013 taxes:

First, some potentially good news for taxpayers who claim a home office deduction: You now may choose between the traditional method of calculating the business use of your home (which involves numerous calculations, filling out the onerous IRS Form 8829 and maintaining back-up records for years) and a new simplified option.

Under the new, so-called "safe harbor" method, you can simply claim a standard deduction of $5 per square foot for the portion of your home used regularly and exclusively for business, up to a maximum of 300 square feet - a $1,500 limit.

Contrast that with the traditional method where you must calculate actual expenses of your home office expressed as a percentage of the square footage your home office consumes. For example, if your office takes up 12 percent of your house, you can deduct 12 percent of your electricity bill.

A few additional details:

• You can choose either method from year to year; however, once you've elected a method for a given tax year it's irrevocable.
• Under the safe-harbor method you cannot depreciate the portion of your home used for business in that particular year.
• With the new method you can still claim allowable mortgage interest, real estate taxes and insurance losses as itemized deductions on Schedule A. These deductions don't have to be allocated between personal and business use, as under the traditional method.

You'll need to weigh whether the recordkeeping hours you save justify the potentially smaller deduction - especially if you have a large home office or considerable deductions. Suggestion: Look at last year's deduction and compare what it would have been using the $5 per square foot calculation, factoring in time spent doing the math.

A few other self-employment tax-filing considerations:

• In addition to the home office deduction, you generally can deduct many other business-related expenses, including: legal and accounting fees; professional dues and subscriptions; business insurance and licenses; professional training and education; professional equipment and software; maintenance/repairs; and business-related mileage, travel and entertainment.
• You can also deduct the full cost of medical, dental, vision and long-term care insurance premiums for you, your spouse and dependents, even if you don't itemize deductions.
• For more details on business expenses and deductions, see IRS Publication 535 (www.irs.gov). Also visit the IRS' Self-Employed Individuals Tax Center.

Bottom line: Income taxes are often more complicated for self-employed people and good recordkeeping is essential. Unless you're an accounting whiz, consider hiring a tax professional or financial planner who specializes in self-employment issues. The penalties and fees they can help you avoid - and hidden deductions they can uncover - will probably more than pay for their fees.

Jason Alderman directs Visa's financial education programs. To participate in a free, online Financial Literacy and Education Summit on April 2, 2014, go to www.practicalmoneyskills.com/summit2014.

By Jason Alderman

On Valentine's Day, people's emotions run all over the map - some are head-over-heels and want to shower their loved one with gifts, while others are despondent because currently they have no one special in their life.

Whatever your love status, one thing everyone needs to guard against at this time of year is scams.

Valentine's Day brings out the best - and worst - in human behavior. Our impulse is to be generous and search for the ideal gift. Internet thieves know this and coolly set traps for unsuspecting shoppers. And, not surprisingly, dating websites experience greater activity, along with a corresponding increase in relationship scammers.

Here are some of the more common Valentine's Day scams to avoid:

Electronic greeting cards are popular year-round, especially near holidays. Scammers count on you not paying attention when you receive an email with an innocuous subject line like, "Someone you know just sent you an e-card."

Unless you're certain someone sent you an e-card, never click on links or follow instructions to download software to open the message. Chances are you'll load a virus or malware onto your computer, dooming you to receive endless spam or even endangering your personal and financial information.

Valentine's Day is the busiest day of the year for florists. Since many people now order flowers online, these purchases are a common target for fraud. A few tips when choosing a florist:

• Make sure the physical location, contact information and fees for the florist who's actually fulfilling your order are fully disclosed.
• Pay by credit card so if there's a problem you can dispute it with your card issuer.
• If you receive an email saying there's a problem with your order, call the florist to make sure it's legitimate; don't click on any links - they could be malware.

Beware of emails and social media ads touting great deals on other Valentine's themed gifts like chocolates, jewelry or lingerie. Unless you've previously done business with a company that legitimately has your email address, be skeptical. Watch out for minor typos in the web address - www.macys.comm instead of www.macys.com, for example.

It's no coincidence that dating websites are busier during the winter holidays and leading up to Valentine's Day. Lonely people's defenses are lowered, making them vulnerable to online romance scams. Before they know it, victims are conned into sharing personal or financial information, or lending money - money they'll never see again.

I'm not saying don't pursue love online at legitimate dating sites. Just watch out for these warning signs:

• They want to move your conversations off the dating site immediately and use personal email or instant messaging - the better to avoid policing by the site's Webmaster.
• Their online profile sounds too good to be true. That's because they've probably shaped it to reflect your stated preferences. Or, conversely, their profile may be suspiciously sketchy on details or their photos don't seem genuine.
• They profess love very quickly, even before you've spoken or met.
• They claim to be a U.S. citizen working overseas - often in the military.
• They make plans to visit, but are suddenly prevented by a traumatic family or business event - one which your money can overcome.

Bottom line: Don't let your emotions get the better of your common sense when it comes to matters of the heart. For more tips on spotting and reporting online scams, visit the Federal Trade Commission's website (www.ftc.gov).

By Jason Alderman

Anyone who's ever been asked to step in and manage their parents' or someone else's personal finances can tell you that it's an awesome responsibility - and by "awesome," I don't mean "totally cool." It's more like "inspiring an overwhelming feeling of fear." (Thank you, Dictionary.com.)

In recognition that millions of Americans act as fiduciaries (i.e., manage money or property) for loved ones, often with no formal training or expertise, the Consumer Financial Protection Bureau (CFPB) has created four, easy-to-understand caregiver guides called "Managing Someone Else's Money" (at www.consumerfinance.gov.)

CFPB Director Richard Cordray notes that there are 50 million older Americans - and millions of aging baby boomers are rapidly approaching retirement. Some 22 million people over 60 have already given someone power of attorney to make their financial decisions, and millions of others - including younger disabled adults - have court-appointed guardians or other fiduciaries. "In order to protect our seniors, we must educate the caregiver generation," he explains.

Sometimes that means learning more about the financial products and services available to seniors to help them make informed choices. But often, it's the caregivers themselves who must make critical decisions - whether they've got power of attorney for a parent with Alzheimer's or have been tapped to manage Social Security benefits for a disabled friend.

The CFPB guides are geared toward people in four different fiduciary capacities:

• Someone has granted you "power of attorney" to make money and property decisions on his or her behalf.
• "Court-appointed guardian," where a court appoints you guardian over a person's money and property when they can't manage it themself.
• You're named as "trustee" under someone's revocable living trust and have decision-making powers over the trust's assets.
• "Government fiduciary," where you've been appointed by the government to manage someone's Social Security or Veterans Administration income benefits.

The CFPB cites four main responsibilities for fiduciaries:

• Act in the person's best interest. For example, a fiduciary shouldn't loan or give the person's money to themselves or others and should avoid other conflicts of interest. The guides provide examples of actions that may pose conflicts.
• Manage money and property carefully. This includes paying bills on time, protecting unspent funds, investing carefully, and maintaining a list of all monies, properties and debts.
• Keep your money and property separate. This means paying the person's expenses from his or her own funds, and avoiding joint accounts.
• Maintain good records: Keep detailed lists of money received or spent on the person's behalf, avoid paying in cash in order to have a record of purchases, and keep all receipts.

The guides walk caregivers through their fiduciary responsibilities and provide practical money-management ideas, such as what sorts of records you should keep, how to interact with banks and other professionals on their behalf, and suggestions for avoiding conflicts with family members and friends who disagree with your actions.

They also provide tips for spotting financial exploitation and avoiding scams. As Cordray notes, seniors "make attractive targets because they often have tangible household wealth - whether it is in retirement savings or home equity - but they may be isolated or lonely or otherwise susceptible to being influenced by a predator in disguise."

Bottom line: Fiduciaries must be trustworthy, honest and act in good faith. If you don't meet these standards you could be removed from the position, sued, forced to repay ill-spent money or possibly even jailed. That's why it's important to make sure you're qualified before accepting the responsibility of watching over someone's finances.