Children and holiday spending
Are you spending unnecessarily on children gifts?
As parents, we want the best for our children and that is no exception during gift-giving time. But do we spend too much on holiday gifts for our children? Are we exceeding our holiday budget? Are we going to be in more debt than we can handle in January? According to Lexington Law, a study conducted by Harris Interactive, revealed 57 percent of parents were willing to go into debt to make their children happy for the holidays.
Parents can make children happy and stay within budget if they plan. Michigan State University Extension recommends creating a holiday budget and saving throughout the year so the holidays are less stressful and costly. Parents may want to think about giving gifts tied to teaching their children about finances. Piggy banks that have separate compartments for saving, spending, donating and investing are great gifts and can assist with teaching young children about money. Children ATMs are also wonderful gifts that can provide valuable money lessons for younger children. Board games such as Monopoly, Payday and The Allowance Game or books about finances can be fun gifts that can extend into financial lessons for older children. Cash gifts can also be an excellent way to integrate banking experiences by helping children to open savings and/or educational accounts at local financial institutions.
Finally, think of ways to stretch your money with what you already have to avoid unnecessary debt this holiday season. Do you still have that old gift card you never used? If so, there are websites that allow you to sell them and buy gifts cards at a discounted rate. What about that old iPhone? Look for reputable websites that buys your old electronics or you may want look for websites that allow you to try your hand at selling your old electronics and other things.
You can stay within your holiday budget and still have happy children if you discipline yourself, get creative and stick to your holiday spending plan. Be sure to visit MSU Extension and MI Money Health for valuable resources and upcoming workshops. Happy Holidays!
This information is for educational purposes only. Reference to commercial products or trade names does not imply endorsement by MSU Extension or bias against those not mentioned.