Wishing you a financially sensible Christmas
Christmas comes but once a year – thank goodness. But given it does, in fact, come every year without fail, we can’t call it unexpected. Yet our finances seem to suffer the aftereffects as if we didn’t see it coming.
Part of it will be the cumulative pressure on our cashflow given its proximity to the annual summer holiday and the re-start of the school year. Part of it will likely be the evergrowing pressure to have an Instagram-worthy Christmas. Then there’s the pressure that YouTube or TikTok generates from your kids to have to buy them the latest craze.
I wish I could say New Zealanders who have enough disposable income to spend on Christmas nail the financial management of it – but to suggest the financial hangover is the preserve of the cash-strapped is just not true.
There’s a reason ads for debt consolidation abound in the new year: To put a sticking plaster on our financial hangover.
If you’re a fan of a bit of Christmas joy, I’m not here to be the grinch who steals that from you. But I would like to be the financial fairy who grants you both a happy Christmas and a successful and stress-free new year. So here are some of the things that work for me.
Go early, then go home
I bought my first Christmas gifts this year on the first weekend of October. Yes, I know, it’s something your grandmother would do – but your grandmother was on to something! You might think October is a little crazy but buying early and spreading the cost is considerably less crazy than putting it on credit. Shopping on Christmas Eve will also ruin any thought you put into your budget.
Guide the relatives
Kids are almost always overwhelmed by Christmas Day. Watching them open presents is joyful ... until they’re casting gifts aside before they’ve even clocked what they are, let alone who gave them. Obviously, you want to give them things they want, but beyond a certain point it’s just more stuff. So, try guiding the relatives who want to buy for your kids to purchase things they need. I try to do this with my nieces and nephews.
Generally, it’s clothes – I aim to
make them ‘‘cool’’ and they’ve always gone down a treat, but ultimately it’s about helping their parents because the kids are growing like topsy. Other things I’ve tried: swimming lessons, togs; annual passes to the zoo; a day at Splash Planet; a family pass to the Rotorua tree walk. Group activities can be cheaper than buying something for each one individually, plus it gives the family a chance to make memories together on a day out that doesn’t cost them the earth.
Sneaky Santa
If you’ve got a big extended family, like I do, we buy for the kids, but the adults play both Secret Santa and Sneaky Santa. For the immediate family we do the regular old ‘‘pull a name out of a hat and buy within a set budget for that person’’ routine. For the extended family, we each buy a gift, draw numbers to see who picks from the gift pile first, then play a (sometimes vicious but always hilarious) game of stealing and swapping until everyone’s had a great time and maybe even has a present they’re stoked with.
Or you could just ... not
Your fourth cousin once removed does not need a Kmart candle and a bath bomb from Lush. Your child’s teacher doesn’t need a box of Favourites from every child. This might seem radical, but if you’re just giving a gift for the sake of it – maybe don’t? If you’re giving something to someone who neither wants nor needs it and you’re spending money you can’t afford – then definitely don’t. Save your wallet and the planet. If the gift is just a thought – try putting those thoughts on paper! Chances are it will mean more and cost less.
I love Christmas, and I’m not a super-frugal person – I like shopping. But I also want to create financial security and financial success for myself – and my clients. Doing that doesn’t have to require any grinchiness, just some planning, and reminding yourself that Christmas is not just about acquiring more stuff.