The Money Coach - Financial Planning for Christmas

14 November 2006

Having a great Christmas without blowing your budget

Wouldn’t we love it if it were that simple?! Because we’re all unique it will be different for each us. Having different values and beliefs about Christmas means that no one answer will fit all. What may be important is to ask yourself some key questions.

What is important about Christmas to my family and I?

how do we like to celebrate Christmas or holidays?
what is it we really enjoy about the Christmas/ holiday season?
do we like to focus more on the feast, the religious themes, a holiday away, or gift giving?

Really think about what is important to you and your family rather than be overtaken by media advertising of what you should do. Even family tradition can be a bind, some people love to carry on family tradition and others like to create and begin their own traditions. If your preference is for a simple affair, this will give more meaning and joy than an elaborate event.

What is my Christmas budget?

Taking time to plan the event gives you room to think about what you want and how you will spend your money. Many people plan for Christmas all year with a savings account or by purchasing gifts throughout the year at sales. If you aren’t that kind of person, here are some suggestions:

Make lists and stick within your budget;
For those bigger gifts, like bicycles, consider buying second-hand, if brand new will stretch the budget too far;
If extended family or whanau have decided Christmas is at your house this year ask everyone to bring a plate. Some people have trouble with this but in the interests of not blowing your budget for the rest of the year and therefore perhaps depriving yourself and your family of comfortable living, it's worth doing;
Or forget about the traditional turkey and ham and have a good old Kiwi BBQ; or skip the big dinner altogether and have a yummy Christmas breakfast or a simple picnic at the beach.

Christmas on credit?

This means paying Christmas off all next year at a high interest rate. In the long run Christmas costs you more and you pay for it all year which means you could be missing out on all sorts of things and experiences just for the sake of a one-day event. For some that may be worth it, for others it definitely isn’t. If you are going to use a credit card think about taking maximum advantage of the interest-free days.

What about the kids?

A commonly held belief is that Christmas is for the kids and you can’t let them down. Many adults remember their own Christmas experiences as being a let down or a disappointment and don’t want that for their children. Alternatively, they feel they had Christmas with all the whistles and bells, and struggle to provide that. Anything with guilt attached to it, probably isn’t going to feel good and may not be the best starting point for providing a great experience for yourself or your family. Kids love nothing more than when their parents are happy and enjoying themselves, so remember, Christmas is for everyone not just the kids.

Have a think about whether you’re trying to recreate or avoid your own childhood experiences. Maybe it’s time to make some new experiences and create great memories for yourself and your children.

Get the kids involved in Christmas

Encourage them to make presents, cards and decorations. It can be fun and really cost effective. Go to your local library or the internet for suggestions. Do it with them and they will really love it.
Make homemade sweets or cookies and package them up beautifully.
Grandparents love up-to-date photos of their grandchildren, so take some, and arrange them on a collage or put them in a simple frame.

Gift giving

For some people this is what it’s all about, and they struggle to provide a better gift than previous years. If you find yourself struggling with gift giving, particularly to your wider family or whanau, think about:

Pulling a name out of the hat: this means you write everyone’s name on individual pieces of paper, and put them all in a hat or container, and ask everyone in the family to pull out a name (if they pull out their own name, they put it back and try again) and buy a present for that person only. You can set a dollar limit as well, and everyone gets one good present each and it’s less shopping for everyone.
$5 lucky dip: this is where you purchase a gift not worth more than $5, wrap it up and put it in a basket or under the tree, and when the family gets together you each have a turn choosing a lucky dip. You can set a theme for this too and it can be a real fun experience for the whole family.
Agree to not give a present: if gift giving isn’t important to you, make a family-wide agreement not to give presents, and just celebrate the day together with food and good fun.

Giving in other ways

Christmas is often marked as a time of giving and there are many ways to give a precious gift without running out and spending lots of money. If you want to give in other ways, why not consider:

Inviting someone who you know will be alone to share your family Christmas celebration;
Within NZDF there will be people deployed and families at home without Mum or Dad for Christmas. How about dropping in on someone you know in this situation and making sure they have company if they want it. Or send a card or email to the person overseas and let them know you are thinking of them;
Drop something off to a charity that supports others in hardship i.e. Foodbank, Red Cross, RNZSPCA. Many supermarkets have collection points for these organisations.
Find out where your local “Room At the Inn” will be held this year and see if you can help. The local City Council Information Centre should be able to help you with this.
If you’re single, find out what the other singles in your workplace are up to and if they would like to share Christmas Day with you.
If you’re musical, join a choir and go carol singing to spread some Christmas cheer.
Smile at every one – strangers, family and friends – it makes for a brighter day all round.

Give yourself a stress-free Christmas

Really take care of yourself and your health and wellbeing. We can all over-indulge a little a Christmas, so make sure you balance that with plenty of fresh air and exercise or healthy alternatives.
Stick to your budget and get creative about what you can achieve on what you have got.
Remember, children are happiest when their mums and dads are happy and relaxed.
If the family get-together stresses you out, don’t do it, do what you will enjoy.

A common theme we can perhaps all relate to, is that Christmas is about feeling good, and sharing that feeling around as much as possible, so think about how you can best do that.

Smiling and spreading joy is free.

Need Advice?

Local Community Services Officer