The holiday season may be a joyous time to gather with family and friends, but it can also become an expensive time — depending on how parents and guardians approach it. This is why financial experts suggest approaching this time with awareness so that way you can have a happy and festive season like the holiday songs promise.
If your goal this holiday season isn’t to embody the 1968 Christmas song “Christmas Shopping” by Buck Owens, it is time to mentally prepare for what it really means to be generous with your gift-giving.
Tip: Start planning for gift-buying early
David Rae, a Los Angeles-based certified financial planner for more than two decades and president and founder of DRM Wealth Management LLC, emphasizes the importance of starting early to make things less stressful as the holidays approach.
“I think the earlier you can plan and make sure it isn’t a budget buster come December, the better off you’ll be, especially if money is tight…,” Rae says.
It is his opinion that planning ahead can be helpful down the road because it provides the chance to end a cycle of playing catch-up in payments for the next year.
“I’m a big fan of having a number in mind of what you want to spend on gifts for various people — your parents, your kids, your spouse. Having a kind of budget is not a fun thing to do, but knowing [what you want to spend] — whether that number is $100 or $500 or $50… knowing what that number is and kind of shopping within that range” is key, Rae says.
“[A]fter you get through Christmas, you don’t want to be in a cycle every year or spending half the year or most of the year paying off the last year’s Christmas; rather, you want to be planning ahead and looking what you can do to make sure you have money to buy the gifts you plan on getting anyway well ahead of Christmas,” he continues.
Tip: Communicate with your partner and children
So how can you get there? How is planning able to be implemented? Rae said it is all about clear and effective communication with your partner if you’re co-parenting or in a relationship when it comes to holiday shopping, especially for the children in your life.
He also suggests that it is important to not only stay within budget, but to make sure there is a mutual understanding as to what mutual gifts are being given to the other both in quantity and cost. The reason is to help avoid unnecessary arguments.
Since some children are born in December, it can make gift-giving even tricker for the holidays. If you have a child or numerous children born around or throughout the holiday season, make sure they feel seen and appreciated.
“You want to make sure your child is feeling like they’re getting both a birthday and Christmas [gifts], especially if they have other siblings who are getting both birthday and Christmas [gifts] separately,” Rae says.
Rae can relate to this dilemma because his spouse, whose birthday is a few days before Christmas, told him of his own experiences of “lumped” gifts for his birthday and Christmas.
“It is also a good opportunity to give them a little bigger gift than they might get for either their birthday or Christmas by kind of combining the budget for both birthday and Christmas into one larger gift or a larger experience, but you still want to make sure that you’re very clear that they’re getting a bigger gift because [you’re] combining their birthday and Christmas rather than losing out on their birthday or Christmas,” Rae explains.
An example of a more extravagant gifts could be a plane ticket to some place your child, particularly older children, may want to go.
For older kids, the conversation around gift giving can also include them in the conversation after assessing their understanding of how money works. According to various financial articles and institutions, the holiday season is a good time to begin talking to kids about money.
The pressure to give can feel greater at this time of the year as it is filled with so many emotions, which can impact how shopping is done, in particular for parents or guardians, so it is best to communicate about expectations and financial realities as early and clearly as possible, Ray says.
Tip: Reach out for financial help
To execute your holiday shopping successfully and reduce mental stress, research tools and resources you may have at your disposal. If you need financial assistance, you can check for opportunities with your religious community, government-assistance programs and even employee-assistance programs. According to a Yahoo! Finance article, there may be help and opportunities to make things easier by turning to each of these sources for support.
With time off from work and school, the plethora of holiday events is tempting, but these events can add additional financial strain. But you and your loved ones should be able to join in spreading holiday cheer without it tanking your bank account. Sites such as Bright Future Indiana, a resources for families in that state but with suggestions that can be applied anywhere, including L.A., proposes that you look at how you can have fun affordably even when with a big group. Tips include seeing holiday lights, and L.A. Parent always has a robust roundup of local events, including during the holidays.
Tip: Plan for unexpected expenses
Even with the best financial planning, life sometimes throws us curveballs, so it’s always a good idea to budget for unexpected expenses. One parental blog, Talking Parents, reminds readers to do just that. Extra holiday expenses can include decorations and more.
Tip: Remember you this holiday season
While giving to others, do not forget to give to yourself this upcoming holiday season. One gift that is free and always at your fingertips is the power of choice.
A money-focused site, Bankrate has listed the importance of saying “No” as something that should become a kind of practice throughout the season. It may be important to do this as it helps to stick to your budget. If you know you can’t afford to take on additional expenses, then remember that saying “No” is your best tool against any potential guilt or persuasion to spend more than what you’re willing to spend.
Happy holidays!
Camille Daniels is an editorial intern at L.A. Parent.
