T’is the season to go shopping! Welcome to December. Did you know that during this holiday season we actually have six fewer shopping days between Thanksgiving and Christmas than we did last year? It’s all a function of the calendar, of course, but this express time window plays a key role in holiday spending, too.
Mindful Reminders!
We can’t think of a better time of year to be mindful of financial literacy. That’s why your FUTURES™ team will post 12 Days of Blogging! during this holiday season. Every few days between today and the first week of January, we’ll share seasonal posts filled with ideas, reality checks, strategies, and great ways to connect with your kids about financial literacy on these action-packed spending days—and nights!
A Financially Literate Holiday Season
The FUTURES team knows all about Financial Literacy and how to integrate this critical skill set into your family and classroom. From Personal Finance and Economics to Entrepreneurship and Investing, FUTURES: Financially Literate Kids for a Financially Literate Society™ is the groundbreaking Financial Literacy Program that empowers students BEFORE High School—to achieve their best success AFTER High School. And, unlike the other items on your shopping list, this program is FREE!
Because this time of is year is so busy, we know you likely won’t have time to dive into the whole FUTURES program even though it IS free; time is at a premium. So, these twelve posts will be rich with relevant, easy-to-apply FUTURES concepts and ideas that you can quickly incorporate into this holiday season both in the classroom and around the kitchen table.
Why We Buy
This tightened Thanksgiving-to-Christmas timeframe doesn’t correlate to consumers doing less shopping. In fact, the reverse is often true. Time compression makes many people feel an urgency that translates into spending even more money in less time! Expedited shipping fees, less time to scope out coupons and discounts, limited inventory choices, short deal windows, and too many confusing sales are symptoms of a compressed shopping season and often increase the amount of money that buyers spend because temptations abound!
People tend to fall into several different categories when it comes to the reasons that they justify spending more—
What other choice do I have? I need to buy gifts.
I’ll forget about my debt until the bills come.
I’m luckier than most; after all, my only worry is money.
I don’t want my kids to feel the disappointment I felt as a child.
It makes me so happy to buy for others and give great gifts!
Worry All The Way
Whatever reasons might ring most true for you, this time of year is often about spending—and over-spending. Credit cards make it even easier to spend now without considering the interest, debt, and overdrawn anxiety that is soon to follow. Phone ads, commercials, banner ads, and videos tend to focus on shopping, deals, the need to BUY IT NOW! But BUY NOW all too quickly morphs into PAY LATER–and later is not far away. It’s easy to get caught up in and distracted by events, excitement, and traditions. While it’s easy to push away those nagging worries, in truth, most of us worry all the way, anyway. If this scenario feels familiar, check out the Loans and Credit section in the Personal Finance Strand of FUTURES for a quick refresher. You might even want to do a few of the activities with your kids. It’s never too early to foster financial literacy.
Because gifts are often stashed in hiding spots, it’s easy to forget all that’s been purchased until it’s time to get wrapping. It’s only when it’s time to step back and wrap that many of us actually see all of our purchases in one place. This is when the reality of what’s been spent sinks in. By this point, however it’s too late to undo much of the damage.
Start Smart
Do you often hear the words, “But, I need it!” or “Here’s my HAVE-TO-HAVE list for this year!” from your children, students, or even your partner? This season is an ideal time to help those you love, including the young people in your life, to become more aware of their own financial responsibility, too. Try these two quick strategies to get your small group focused on what really matters—starting with you.
Checking Your Lists
A great way to control what you spend at this time of year is to have a plan. Before you ask for anyone else’s lists, be sure to make one of your own. It’s the most important list you’ll make.
To stay on budget, one must have a budget, so before you begin to spend in earnest this season, stop and assess exactly how much money you can afford to spend. Use a budgeting form like the one below to help you consider both obvious and hidden expenses.
Do the Math
Before you ask for gift lists, do the math. Calculate how many people you’re buying for. If you have three kids, a parent, two siblings, and four dear friends who always buy for you, consider assigning categories to each group. Can you afford to spend $15 on each friend? Are you the only person buying for your kids? What percentage of your budget should be dedicated to them? Can you suggest that your family draw names from a hat and each person chooses one extended family member to buy for in order to give one more significant gift? Why not propose a limit so everyone spends the same amount?
When you begin with your budget, and look at the list of gift recipients on your list, you may discover you need to pare down your list or get more creative in your gifting approaches. (More on this topic in this weekend’s post.)
Set Expectations, Get Options
Now that you know what your resources look like, you’ve begun to shape your own expectations. Next, it’s time to set the expectations of those for whom you’re shopping. One way of setting the stage is to share the scope of what you can do. Perhaps you begin by explaining that this year you hope to be able to buy each person one nicer gift like a coat or one new game. By giving examples, you are clarifying what you mean by nicer so no one is disappointed when gifts are opened. Even the nicest coat pales in comparison to a hoped-for new cell phone or the hottest new tennis shoes.
When you ask others for ideas, be clear about what you want to know. Ask for three different ideas for a bigger gift in the range of X dollars and ask for five ideas for three smaller gifts in the range of Y dollars. While these discussions might reduce the level of surprise by your recipients, it equally reduces your own surprise when the billing cycles roll around. Asking for options helps everyone know what to expect. You’ll know you’re spending your hard-earned money on something that recipients want, you’re not boxed into overpaying for just one item, and there’s still an element of surprise when gifts are opened. Your recipients will also be prepared for fewer, more meaningful gifts.
Underneath It All
Under the colorful, active trimmings of the holiday season, at the heart of all your planning, purchasing, and paying actions, you’ll discover financial literacy.
The four strands of the FUTURES program are hard at work all through this season. Economics and Personal Finance lead to Investing in gifts that matter to others and that you can afford to give while tapping into your Entrepreneurial talents for those more creative gift-giving ideas that work for recipients—and your budget.
Jumpstart your own financial planning this holiday season by checking out the Personal Finance strand of FUTURES. It’s full of worksheets and ideas you can apply all month long. In fact, click here to download the entire program. We’ll be back in a few days with our next post, Winning Game Plans Save Money!