It can be difficult to meet the expectations of your family during the holiday season. As a parent, you want to give your children everything they could ever want and need. However, in a tough economy, that is not always possible. Being responsible for your finances is an important skill to learn when you are working on saving money for your family’s future, especially during the holidays.
It is important to keep in mind that the holidays should be focused on spending time with loved ones, and not necessarily on buying the biggest and most expensive presents. Some people plan ahead by shopping for presents all year round while others have budgeted for the season. If you are becoming stressed out because you did no planning whatsoever, don’t fear. Here are some tips to organize your holiday spending now and make the year-end easier to manage financially:
Create a list of everything you will need to spend money on that is specific to your holiday. This can include gifts, any parties you will be attending or hosting, any costs associated with events at work, events at school, wrapping paper, holiday décor, and charitable contributions.
• Open up a separate account at your bank that you can use solely for your holiday expenses. This can help you easily track your savings progress and avoid overspending.
• Commit to funding your holiday account with a specific amount of money from each paycheck you receive.
• If you find that you just cannot afford something, go back to your original list and determine ways to cut your expenses.
• Create your spending strategy by making another list of when you are going to buy each item.
• If you have any unused money in your holiday left, consider either paying down a high-interest loan, credit card debt, or leaving it in your account for next year.
Once the New Year comes around, you can begin planning for your next holiday season. Repeating this budgeting strategy can help you manage your money in a responsible way. At Nahai Insurance Services, we also work hard to help you understand why your investments are so important. We strive to protect you from unpredictable risks that could cause your family financial losses. Don’t leave yourself exposed to accidents. Instead, safeguard what you love with the affordable personal insurance we can offer you!