Black Friday. Shopping Day. The Official First Day of Christmas. Whatever title you use, for a lot of folks, it’s THE day to melt the credit card and buy all the shiny things to wrap up and put under the Christmas tree. Even with COVID surging, my email box is full of ads to get people into stores – retailers are fighting hard for my money and yours, looking for that market share. It made me curious – what are your shopping plans?
In years past, I joined the fray of shoppers – even tough I detested it. Shopping is one of my least favorite activities, and the day after Thanksgiving started the ticking of a clock counting down minutes to a bomb that would explode if I didn’t finish shopping in time. What to buy for everyone, making sure the kids had “equal” amounts, and was there anything I could get my dad that he didn’t already have? My stress level was off the charts, and no one was having fun. And the money I was spending… Time for a change.
I’ve read several reports of American debt at Christmas time – depending on the study, we rack up debt that takes anywhere from one to six months to pay off. In my work, I see the effects of this type of debt, brought about by shopping for things we don’t need. I’ve seen people trying to purchase their first home, only to be told they have too much consumer debt, and can’t qualify for a mortgage. For too many people, shopping is literally keeping them stuck in a cycle of paying rent – which goes up every year – and locked out of the American dream of homeownership. Which begs the question – are the shiny toys under the tree worth it?
Before you start shopping this year, here are a few things to consider:
- What is your financial goal SEPARATE from Christmas? E.g., are you saving for a car, a home, something else? What do you want your financial picture to look like this time NEXT year? Your shopping trip today needs to take this goal into consideration.
- What is your TOTAL Christmas budget? This needs to include not only gifts, but decorating your home, supplies for parties, etc. Christmas is a sneaky holiday, and the costs add up quickly. Write it down. Stick to it.
- Where can you cut costs?
The last bullet point was the catalyst for change in our family several years ago. Realizing my dad didn’t need another pair of jogging pants and wracking my brain for something to buy my husband, I decided to just stop. I started giving meaningful gifts instead of things with a shelf life. An old photo enlarged and framed. A hand knit sweater or something else hand made. Something special, mentioned in passing by my kids they weren’t expecting. I had to be more thoughtful and more intentional. I had to be a better listener. But it kept me out of the mall, and kept me from over-spending. And I had time and energy left to actually spend with my family. It has made our holiday season more meaningful and special, and I’m not paying off Christmas debt into the next year. And that is a beautiful thing.
Tell me your money saving ideas – I’m always curious!