The holiday music is playing and stores are bustling with people trying to find that perfect gift. But don't let the magic of the holiday season break your budget! When you are planning gifts for your family and friends, remember the philosophy of, “Save, Spend, Share.”
Talk to your kids about saving and overspending during the holidays. Honest conversation and good financial habits will help them succeed later in life.
“You should plan to spend no more than 70 percent of your money for wants or needs, save 25 percent for the future and share 5 percent in the community by giving back and supporting special causes or organizations,” said Katie Scofield, Numerica Credit Union Financial Education Officer.
During the Christmas season, Americans spend nine times more than any other time of the year. But overspending can put a damper on New Year goals.
Besides sticking to a budget, another idea to avoid January stress and spending regret is to make a list (and checking it twice). Include gift ideas with the names of those you're shopping for and stick to the list. Window shopping can lead to splurges that might break your budget. Other ways to save include limiting self-gifting, tracking your spending as you go and looking for opportunities to create memories together like coupons or vouchers for activities rather than just buying a gift.
“The holidays are about coming together to make life better for our community and creating memories with those we love,” says Scofield.