Barefoot Investor issues warning ahead of Christmas spend-up

PARENTS should think twice before blowing a fortune on their kids this Christmas because often they end up giving them expensive presents they “don’t remember anyway”.

Barefoot Investor Scott Pape has warned families: “It’s not worth it if that ruins or stresses you out, if it ruins it for you right up to Christmas, and after Christmas.

“Kids have inflated expectations about what they expect from Santa and that leads into tough conversations.”

Pape said December and January always caused heightened financial pressures and he urged shoppers to steer clear of credit and limit how much cash they splash.

The nation’s ballooning credit card bill crept up to $52.9 billion in December last year and already sits at a whopping $51.9 billion, latest Reserve Bank of Australia figures show.

“For many Australians the next 60 days are the most stressful days of the year because you have Christmas, Christmas presents then you have school fees,” Pape said.

“If you haven’t been planning for it you can get yourselves in a lot of trouble.”

Just over three weeks remain until Christmas and already shoppers have been swamped by massive sales including for Black Friday and Cyber Monday — traditionally monstrous shopping days in the US that have now become big Down Under.

Pape said many Australians often left it too late to plan financially before Christmas, so for these people they should try and cut their spending.

Paying with debit instead of credit is important and sticking to a shopping list is also key to avoiding a financial blowout.