Three steps to reducing financial stress of gift giving this Christmas
Posted on 03 December 2009
We enjoy giving gifts for Christmas. Many of us experienced change in our financial situation this year, so Christmas may be even more financially challenging and stressful than before.
Here are three things you can do to reduce stress this Christmas season:
1. Set specific “gift giving” budget and stick to it.
Pick the maximum dollar amount you will spend for gifts this Christmas. Sometimes we get a wish list of what people closest to us would like to receive and that is what determines the “budget.” This year, set the budget based on the cash you have. Knowing that everything is paid for makes for a really good Christmas, a nice gift to give yourself.
If you are willing to spend beyond cash you currently have, do not charge more than what you will be able to pay off by mid February. Know how you will pay for it. For example, you may select an on-going expense you will eliminate or lower and that “saving” will pay for the “extra” money for Christmas gifts. Have it all worked out before you buy the gifts. Avoid spending money you don’t have, such as bonuses or commissions you expect to be paid next year.
2. Prioritize your gift giving list.
There are various groups of people on the Christmas (or holiday) gift giving list: kids, spouse, parents, siblings, friends, boss. Depending on a size of your budget this year you may shorten your list of people who will receive traditional (store bought) gifts. Reach out and make specific agreements with each group, agreements that will work for everyone involved. Agreements could range from “Let’s set a limit of maximum $ per gift” to “We will not exchange gifts this year and will celebrate Christmas by…” Given that we are all affected by what happened in the economy these conversation may be very welcomed. Then use your budget to buy gifts for the non-negotiable list of people, for example kids. As a parent you may have received a long “Dear Santa” list of what your kids want for Christmas. If the list stretches beyond this year’s budget, ask your children to select the most important gift on their list or to prioritize the gifts from most important to “nice to have.”
3. Be creative with your gift ideas.
Sometimes gifts that do not involve money have the greatest value to those we love. “Family coupons” redeemable at your convenience have been a hit with my family. My son gave me “I wash dishes after dinner” and “I wash your car” and “I clean my room” coupons one year. Something he doesn’t like to do and knows I would greatly appreciate. He got “You can drive my car,” “Uninterrupted 3 hours to play games,” I’ll take out trash for you today,” which was something I typically responded with “No” when asked. Each coupon could be used just one time and the recipient got to use the coupon when they wanted. The rule was “no lip service” or conditions attached. When the coupon you gave someone was redeemed you just did what the coupon said. I have to tell you, it was a fabulous gift that made the spirit of Christmas present for few months that followed.
Another creative way to approach gift giving this Christmas is to have a family agree on replacing personal gifts with a contribution to an organization or charity that the entire family can align behind. Rather than spending money on yourself, you jointly give to others or a cause that matters.
These are just some ideas. If you look at what you and others on your list value most, you can come up with your own creative ways to celebrate the Christmas.
Bring play to Christmas, it is much deserved!
Happy Holidays to all.
Ilona Dolinska-Reiser
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