The official holiday shopping season begins in about a week with the Black Friday sales, and the tendency seems to be for most to overspend and then find themselves sitting in a pile of debt after the holidays. That is no way to start the new year. In fact according to Jean Chatzky, financial editor for the Today Show, 13 million Americans are still carrying debt from last years holiday shopping season!
Thankfully Jean gave some sound advice on how to enjoy the holidays without the added stress that overspending and guilt can add if you allow it.
Why is it that we feel that we have to spend elaborate amounts of money to prove to someone that we love them and they are special. The retailers are counting on the guilt that comes when we can't afford to give our child the hottest new toy which often translates into the most expensive.
With unemployment at an all time high of 10.22% (the highest since 1980's) it's imperative that families take this time to teach their kids some valuable lessons about money. There is nothing wrong with sitting down with your kids and explaining to them that you are choosing to use your finances for other things this year like sports and activities instead of large Christmas gifts this year.
Not only will it release the power that guilt can hold on parents, you'll be teaching your children that making smart financial decisions is more important than the newest gaming system. Even if they don't agree with you know, these are lessons that you're teaching your kids that they will remember in their adulthood.
Today I had the opportunity to learn first hand from Jean Chatzky best selling author and financial editor for The Today Show. Some of the topics she covered were:
- How to save more for the holiday expenses.
- Offer advice on how much to spend for the holidays.
- Provide recommendations on how to get your finances back on track after the holidays.
This is your budget. Make a list of everyone you need to get a gift for and assign a dollar amount to each. You can "borrow" from another persons amount as long as you don't go over budget. Don't be motivated by guilt! You can find incredible gifts for very little money this season.
Jean has a handy calculator tool on her site that will give you an idea of how much you should spend this year for the holidays that you can access here.
You could also consider making or baking gifts this Christmas instead of buying gifts.
While I don't necessarily advocate for credit cards, there are a couple of things to keep in mind if you are considering using them this year.
- Don't purchase more on credit than you can afford to pay off in full by February. After all, you don't want to become one of the 13 million still paying a year later do you?
- Be careful with those special store credit cards. You know the ones they offer right at the register. The 10% you save isn't really worth opening and carrying another credit card.
- Anytime you apply for a credit card it puts a small ding in your credit score, so don't get suckered into opening ANY if possible.































