Over the holiday season, one great desire many parents have is to make the holidays as merry and bright as possible for their kids. It is important for parents though to not let this desire lead to overspending.
The temptation to overspend on the kids can be strong. According to a recent survey, just a little short of half of parents (45 percent) say that, regardless of cost, they attempt to get everything on their child’s holiday wish list.
Unchecked spending on presents for the kids could put a lot of financial pressure on a family. The recent survey found that parents who, whatever the cost, try to fully fulfil their children’s holiday wish lists had a higher likelihood of taking on financing over the holidays and a lower likelihood of having retirement savings.
So, it is important for parents to keep their family’s long-term financial health in mind when it comes to holiday spending. Here are some steps parents can take towards avoiding overspending:
- Set up ground rules for your kids when it comes to wish lists: Some families may decide that getting rid of wish lists is the best fit for them. For families that decide to keep such lists around, they may want to set limits for the kids on how expensive of items can go on such lists.
- Factoring in the overall financial situation when deciding what presents to get your kids: Parents may want to check their budget and set some clear limits on how much they will spend on presents.
- Having honest talks about responsible holiday shopping with your children: Talking with the kids about why limits are being set on spending on presents can not only can help with setting clear expectations, it also could help the kids learn good money habits.
- Understand your family‘s option for affordable holiday fun: There are a lot of free or low-cost activities out there for families for the holiday season.
Focusing on what is best for the family in the long-term is not only important when deciding what to do when it comes to spending. It is also an important thing for parents to focus on when a family ends up in debt trouble, such as credit card debt trouble. Skilled bankruptcy lawyers can help parents who are struggling with debt find debt relief solutions that are a good match for their family’s needs.