YOUR MONEY : Are You Dreaming of a Tight Christmas? : Finance: Some tips to keep the spending under control, and not feel like Scrooge in the process.

The tinseled store windows, garland-laden malls and sales promotions galore tell shoppers to come hither for the holidays.

The Christmas season, after all, is when the $282-billion retail industry earns between a third and half its annual profits. It’s also a time when consumers rack up around 40% of their yearly debts.

While retail analysts aren’t predicting a blockbuster season for sales, most agree shoppers will be out in droves this year in search of bargains. The overwhelming wish-list favorites: home electronics, casual clothing and toys.

“I think that people are looking forward to Christmastime,” said Janet Mangano, a vice president at Midlantic Bank of Newark, N.J. “Most consumers do plan on spending as much this year as last year.”

In fact, 57% of those polled recently by the Washington-based International Mass Retail Assn. said they’ll spend about the same on gifts compared to a year ago. Thirty percent plan to spend less, and 12% will spend more.

The average holiday gift allocation: $655.

That might not seem like a budget buster, but added to year-round household expenditures, not to mention other seasonal expenses, it can put a strain on any family’s finances.

“Don’t forget to figure the costs of cards, stamps, gift wrapping, trees, wreaths, holiday-related travel and entertaining,” said Durant Abernethy, president of the National Foundation for Consumer Credit in Silver Spring, Md., which expects to counsel 800,000 households with credit problems next year, 25% more than this year.

But there are simple, even creative, ways to keep the holiday spending frenzy under control, and you need not feel like Scrooge in the process:

* Create a budget and stick to it. Countless households promise to do just that every January--about the time holiday bills start rolling in.

The easiest way to plan a holiday budget is to list and prioritize gift recipients, then set dollar amounts for each along with other holiday incidentals. Don’t spend more than your regular household budget will allow.

Financial advisers suggest socking away money for the holidays months in advance--perhaps using part of a tax refund check or setting a savings account to get the ball rolling.

Abernethy recommends that shoppers take advantage of store layaway plans rather than buy something on credit they can’t immediately afford.

* Be a careful borrower. Here’s a sobering thought for the plastic happy: Someone who carries a $2,500 credit card balance at an average interest rate of 18.5% would take more than 30 years to pay the card off if only the minimum payment of 2% of the total balance is paid each month.

Of course, most people won’t take that long to pay off their bills. But it’s important to note that about two-thirds of all cardholders do carry a balance each month and that about 3.25% have delinquent accounts, according to the American Bankers Assn. in Washington.

If you regularly keep a balance, look for the lowest rate card to minimize financing costs; if bills are paid off each month, use a card without an annual fee.

Just as shoppers search for bargains on holiday gifts, they should also look for credit card deals. Fixed rates range from as low as 12% to as high as nearly 20% at some financial institutions, but some banks may be willing to offer better deals to certain customers.

* Buy sensibly. Of course, Madison Avenue would rather shoppers think “provocative,” “indulgent,” or “fun” when selecting holiday gifts for loved ones.

“There’s nothing wrong with giving gifts people really need,” said Jonathan Pond, a Boston-based financial consultant, who often suggests tools over toiletries. “There’s no reason why you can’t buy that washing machine for your spouse, and then . . . buy some foofaraw for $20.”

Pond also suggests buying gifts that don’t require the recipients to spend money to use.

* Consider investment products. Granted, youngsters’ eyes won’t light up at the sight of a brand spanking new stock or bond certificate. But after getting a few of them as gifts over the years, they might eventually be able to afford something that really excites them--such as a car, a vacation with friends, even college tuition.

A U.S. savings bond is the least expensive financial gift because one can be bought for as little as $25. But they’re not as attractive as they used to be because of rule changes earlier this year. The Treasury did away with guaranteed minimum returns and now links interest rates solely to prevailing market conditions on the Series EE issue.

Financial advisers suggest purchasing shares in a no-load mutual fund instead; some have low or no minimum requirements. Another option is to buy shares in a company with which the individual is familiar, such as a fast-food chain or toy manufacturer. Charles Carlson notes in his book “Free Lunch on Wall Street” that several companies provide shareholder freebies likely to appeal to kids. Anheuser-Busch Cos. gives discounts on its amusement parks, and William Wrigley Jr. Co. bestows free packs of gum during the holidays.

* Don’t overspend. You won’t necessarily be awakened by three ghosts if you go this route.

There are countless ways to maintain the real spirit of the holidays yet sustain the integrity of household finances, and author Amy Dacyczyn offers a number of home-grown tips in her book “The Tightwad Gazette II.”

The book suggests Christmas lists be whittled down. Gift givers can draw names within families instead of buying for everyone; try “alternative” gifts by providing services like baby-sitting, or just exchange cards with distant friends.

One well-known tightwad tip: Cut off the front half of a used holiday card and send it out as a postcard.