I know; we barely finish packing the Halloween costumes and composting our jack-o-lanterns before the year’s end holiday consumer rush bludgeons down upon us. Now, I’m no scrooge; I enjoy the holidays as much as the next person. Christmas, Chanukah, and New Year’s Eve are all family-focused activities and fun events to revisit each year. However, over the years, I have noticed how retailers and marketers alike have pushed the spending season back earlier and earlier each year.
Forget Thanksgiving; Tom Turkey’s day in the sun is glossed over by most industries and retailers, except maybe Butterball and Stove Top. No, it’s spending season before the last Halloween wrapper hits the trash. I feel we could all use a pause as the holiday season rush begins, and as a family financial planner, I wanted to provide some insight, tips, and perspective to keep you sane as the holiday rush builds around you.
Holiday Budgeting – Do You Really Want More “Stuff?”
If you have kids, one gift will likely define their holiday season. For some, it’s a Red Rider carbine action BB gun. “You’ll shoot your eye out!” For others, it’s a portable CD player (am I dating myself?) Yes, there’s always one treasured gift that I fully endorse gifting to your kids (within reason) because there’s nothing like witnessing that magic when they rip open the package to see they’ve been gifted something they truly want and will cherish for years to come.
That said, I’m not a proponent of buying and gifting items for the sake of buying and gifting. It feels so wasteful, both financially and environmentally, to see my kids’ toys lying around the house, knowing they may have gotten a combined 30 minutes of joy out of them before moving on to the next thrill.
I advise all parents to set a precedent with all aunts, uncles, in-laws, grandparents, and family friends that the kids DO NOT NEED more plastic toys, things, widgets, and momentary distractions.
Experiences are priceless, as I’ve said time and time again. If grandma wants to gift the kids something, suggest she bring them to a holiday show, rent an Airbnb, or have a special day together of fun.
If she asks if the kids need a new cell phone, say no, buy the kids a stock to sit on, so they’ll learn and appreciate a gifted investment as it grows. While everyone is together for Thanksgiving, while you are picking the Secret Santas, casually mention that it is a great time to “buy low” into the 529 plans and how you wish you had extra to contribute :).
Save yourself clutter and find ways have your family receive gifts that keep on giving, whether that be memories or future financial security.
Holiday Budgeting – Don’t Over-Extend Yourself.
I recommend allocating energy to where you can and asking for help where and when you need it. My wife and I will split duties around the holidays based on our strengths and patience for certain activities. It’s not that different from how we operate throughout the rest of the year, but it’s great to plot out the to-dos through the year’s end.
As you may assume, I do the year-end financial planning and arrange all we’ll need to do going through the end of Q4, so we have a great start going into Q1. We’ll discuss holiday spending budgets for ourselves, our kids, friends, and family. Also, we plot out events that we need to attend and cull down the events that won’t be possible. It’s really important to understand you don’t need to be in attendance for every holiday event that is available to you. People understand it’s a busy season, so don’t stress yourself out with guilt too.
Keep it All In Perspective
The biggest issue that plagues people during the holidays is self-inflicted stress. We tend to lose perspective and become overwhelmed/obsessive, trying to accomplish as much as possible and create as much magic as possible throughout the season. It may sound cheesy, and the lesson has been told many times, but the holidays are about making the most of the moments with family, loved ones, and friends – that’s when the magic surrounds us. The rest is noise and plastic, destined for tomorrow’s recycling.
My door is always open if you’d like to discuss holiday budgeting, family financial planning, or your favorite gift back in 1994!
