Spending wisely during the holidays
The holidays are a good time to review the importance of budgets.
I had a personal experience recently that reminded me of how important it is to use a budget and spend within your means. With the holidays upon us, I received a letter from one of my banks giving me the option to skip a loan payment in order to have more dollars free to spend. Since I work with a group of Michigan State University Extension staff that specialize in career preparation and workforce preparation topics, I could not help but reflect on what we teach related to money management. This can be a very enticing offer, but it comes with consequences. MSU Extension recommends considering the following:
- It does not make the loan payment go away; an individual is still responsible for that payment.
- If the duration of a person’s loan got longer; the payment was just postponed.
- Budgeting is important so that a person always spends within his or her means.
Through Michigan 4-H Youth Development you will find a variety of educational tools and resources available to teach young people about budgeting. Some of our resources used by volunteers may also be very helpful to adults and families. Check out additional materials located under youth money management.
In addition, MSU Extension has some useful news articles posted online that provide important financial management tips.
- “You can control your money!” This article highlights the 3R’s; reality, responsibility and restraint related to money management.
- Check out basic money management tips in the article, “Money tips work for all ages”.
- “Hands-on budgeting simulation makes learning come alive for youth” Explores Spartan Dollars and Cents.
For more information about money management and other resources available visit the Michigan 4-H website. Have a safe and happy holiday season!