Talking Cash: Tips on watching your Christmas spending
For those of you who can't get
enough eggnog and yuletide and
reindeer and so on, I'm sure you
can't wait for Christmas to
come. For those of you who are
nauseated by merely the smell of
eggnog, well, December 26 is
coming up too, so it will all be
over soon. Whether or not you're
full of Christmas cheer, the holidays
can be a huge drain on your
finances. Let's go over some tips
to help you avoid overspending
this holiday.
First, Christmas is hard to budget for, largely because travel is expensive (someone needs to explain to me why it costs so much to fly within Canada, because airline tickets are beyond ridiculous) and no one wants to be known as the person that buys cheapo gifts. There are about a million reasons to splurge and far fewer to budget, but you do have to watch what you spend around this time of year, as it will make a huge difference in your finances come the new year. Sit down and figure out what you're going to spend ahead of time, just to make sure things don't get out of hand too quickly.
Second, watch what you put on credit cards. Or, if you are spending on a credit card, make sure you don't overspend so that you have enough in the bank to pay your credit card off quickly. The most painful part of holiday spending can be dropping a ton of money on travelling, food, gifts and all that other stuff, and putting it all on a credit card that charges 20 per cent annual interest. Don't be the person who is still paying off this Christmas's expenditures next Christmas.
Third, avoid expensive vacations. This can be tough if you really, really want to spend this Christmas on a beach somewhere, but you have to realize what you can and cannot afford. If you can't afford a tropical Christmas vacation, then don't get in over your head by taking on an expensive vacation that you're going to spend ages paying for. Of course, if your parents are covering the bill, that's a different story — just don't show them this article.
There are usually lots of bargains to be had on the shopping front at Christmas. Black Friday (and Cyber Monday) are now past us, but if you're savvy (not to mention willing to line up at 6 a.m.), there are some deals that can be found on Boxing Day. I'd be impressed if I met a family who decided to hold Christmas on December 27 and did all of their Christmas shopping on December 26, getting the Boxing Day bargains. Perhaps you could just skip Christmas altogether. I've heard Festivus is a more inexpensive holiday.
Jeremy Wall is studying Professional Financial Services at Fanshawe College. He holds an Honour's Bachelor of Arts from the University of Western Ontario.
First, Christmas is hard to budget for, largely because travel is expensive (someone needs to explain to me why it costs so much to fly within Canada, because airline tickets are beyond ridiculous) and no one wants to be known as the person that buys cheapo gifts. There are about a million reasons to splurge and far fewer to budget, but you do have to watch what you spend around this time of year, as it will make a huge difference in your finances come the new year. Sit down and figure out what you're going to spend ahead of time, just to make sure things don't get out of hand too quickly.
Second, watch what you put on credit cards. Or, if you are spending on a credit card, make sure you don't overspend so that you have enough in the bank to pay your credit card off quickly. The most painful part of holiday spending can be dropping a ton of money on travelling, food, gifts and all that other stuff, and putting it all on a credit card that charges 20 per cent annual interest. Don't be the person who is still paying off this Christmas's expenditures next Christmas.
Third, avoid expensive vacations. This can be tough if you really, really want to spend this Christmas on a beach somewhere, but you have to realize what you can and cannot afford. If you can't afford a tropical Christmas vacation, then don't get in over your head by taking on an expensive vacation that you're going to spend ages paying for. Of course, if your parents are covering the bill, that's a different story — just don't show them this article.
There are usually lots of bargains to be had on the shopping front at Christmas. Black Friday (and Cyber Monday) are now past us, but if you're savvy (not to mention willing to line up at 6 a.m.), there are some deals that can be found on Boxing Day. I'd be impressed if I met a family who decided to hold Christmas on December 27 and did all of their Christmas shopping on December 26, getting the Boxing Day bargains. Perhaps you could just skip Christmas altogether. I've heard Festivus is a more inexpensive holiday.
Jeremy Wall is studying Professional Financial Services at Fanshawe College. He holds an Honour's Bachelor of Arts from the University of Western Ontario.
