Have you started your Christmas shopping yet, or are you waiting until December 24th?
The average amount of money spent at Christmas for a family of four: is $1,200-$1,500.
It is very difficult for many people to come up with this amount of money right before Christmas. Many people use their credit cards and / or take out personal loans to finance Christmas for their families.
Christmas can be a very stressful time... Many people not enjoying Christmas they're trying to survive Christmas
- Many people are trying to figure out how they are going to get through Christmas?
- How will they be able to purchase those gifts?
- add to the financial pressures, the emotional stress that Christmas brings for millions of people and you realize many people are not enjoying Christmas they're trying to survive Christmas.
Most people do not think about the consequences of borrowing to pay for Christmas!
- Very few people want to deal with debt problems in November or December.
- Most credit and debt couselling providers notice a significant drop in their numbers for individuals accessing financial counselling during these two months.
People who borrow to finance Christmas usually don't worry about the consequences of borrowing until...
- the credit card bills arrive mid-January to early February.
- the New Year has begun, some people will seek assistance from a credit and debt counselling service provider when they realize how much money they actually spent on Christmas.
- early spring, many people realize that they need to do something about their debts and start to seek out information and assistance.
Do you want to start your New Year "Deeper in Debt" or on the road to Financial Wellness?
If you would like to start out your new year on the road to financial wellness, here are some ideas:
- Develop a budget for Christmas spending and stick to it.
- Once you've determined your Christmas budget, plan your spending for Christmas very carefully.
- Share expenses for gifts, meals, entertaining with loved ones,
family and friends.
There are many ways families do this:- draw names for gift purchases,
- buy gifts only for the children,
- set limits on the amounts to be spent for gifts
- get together for pot luck Christmas dinners and family gatherings over the holidays (everyone contributes something instead of one family incurring all of the costs)
If you have ideas that could be added to this list please email she will be happy to put them in upcoming and future newsletters
Start shopping for next Xmas as soon as this Xmas is over:
- take advantage of the sales after Xmas and throughout the coming year (this is a useful tip if you are not charging purchases on which you will have to pay interest)
- learn when the best times of the year are to purchase certain items (this list will be coming to the website soon)
Plan Christmas spending at the start of each New Year
- Save for Xmas all year round.
- Many people use Canada Savings Bonds payroll deductions to pay for their Christmas shopping.
- Starting in January, sign up for a payroll deduction for each payday, the money could go into Canada Savings Bonds or a savings account
- Savings or Canada Savings bonds could be accessed when you're ready to start Christmas Shopping
Happy Planning for your Christmas Spending, if you need information on how to develop a budget please contact A Step Beyond.ca or become a member
