"...and the Grinch, with his Grinch-feet ice cold in the snow, stood puzzling and puzzling, how could it be so? It came without ribbons. It came without tags. It came without packages, boxes or bags. And he puzzled and puzzled 'till his puzzler was sore. Then the Grinch thought of something he hadn't before. What if Christmas, he thought, doesn't come from a store. What if Christmas, perhaps, means a little bit more."
—Dr. Seuss
Maybe Dr. Seuss has a point. He's not my usual go-to-philosopher but having read this story over 100 times to my 3-year-old I am pleased that I absorbed some sort of message. Whether you celebrate Christmas, Hanukkah or choose to get out of town this winter, the stats are out from Bank of Montreal and the average person in Canada spends $1,610 during the holidays on gifts, entertaining and travel. With our national non-mortgage debt levels at their highest in nearly a decade, rising to just over $26,000 per person, do we really want to add more to it this holiday season?
I hear you: shopping and giving this time of year is fun and important. Yes, if you have the money to do so. No, if it is to your financial detriment. Being generous ends when you can no longer give from actual money you have.
So, to empower you to give within your means, here are five tips to help you avoid feeling mopey about your money in January:
Don’t deck the halls with debt
Set a realistic spending goal and stick with it. Set aside money every month leading up to this high-spending season. If you’re starting from scratch, don’t just throw everything on a credit card and hope for the best. Spend according to what you can afford, not what you think will impress your others.
Plan ahead
Use a holiday spending planner to plan, organize and stay on track with your holiday spending. Even with a few weeks before the holidays, you can still plan ahead. Get in the habit this year and then start this plan in January for stress-free holiday shopping in 2013.
Get creative
Money doesn’t grow on Christmas trees so stop kidding yourself. Put thought and time into gifts. Offer your time of babysitting or cooking a meal or create a photo book of the grandkids. This doesn’t mean you should make all your gifts if you’ve never been crafty before. Going out and buying all the supplies you need could put you well over what you intended on spending on a gift in the first place. Know your budget and stay within it—creatively.
Talk
Money can be that elephant in the room, not just in marriages and partnerships but among family members. Don’t be afraid to bring up the subject of holiday spending, be honest and don’t pretend. Let your family know you are trying not to spend money you don’t have. Suggest a gift exchange—everyone draws one name instead of trying to buy for all.
The holidays are for giving.
Avoid the temptation of taking advantage of the holiday sales for yourself. It’s better to “give than receive” at this time of year!
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