Holiday Budgeting Don’t Let Expenses Of The Holiday Season Snowball Into Next Year’s Budget

Summer vacation is long over, but the memories linger - on your credit cards. And now the holidays are just around the corner. It’s a safe bet few families will discuss how they’ll pay for all this fun.

“People are more willing to talk about sex than they are money,” says Michael Hayes, director of education for Consumer Credit Counseling Services in Spokane and Coeur d’Alene. Yet, straight talk is the surest way to stay on top of money matters. This is especially true during the holidays when families tend to adopt a “what the heck, it’s the holidays” attitude and go on wild binges - not unlike blowing a diet. “Let kids know Santa doesn’t have that big of pockets,” Hayes says. “You may even show teens and preteens receipts from last year to give them an idea what it costs.”

If children know what to expect, they’ll feel less anxious and will feel better about watching expenses.

On Nov. 29, Hayes will lead a free workshop on “Surviving the Holidays.” Her mission is to teach families how to have fun without falling off the budget bandwagon.

“You don’t want to spend January avoiding your mailbox,” she says. Here are some tips:

Put it on ice

Some folks need extreme measures to stay on budget. One idea: freezing credit cards in a block of ice. You can’t melt the ice in the microwave (it would destroy the magnetic strips on the backs of the cards) so you’re left with a day or two to think about purchases and how badly you need them.

Fess up

If you do go overboard once during the holidays, don’t use it as an excuse to go hog wild. Once the dust from the spending frenzy has cleared, do not hide from creditors.

“You’ll have an easier time if you talk to creditors before you get so far behind (that) everything snowballs,” Hayes says.

Get heart smart

Know which festivities make your heart sing and focus on those, whether it’s attending a choral concert, baking cookies or skiing with family and friends. For example, Spokane residents Carroll and Robert Ritter enjoy dining with friends. Instead of a lavish night out, they may choose to scale back and entertain at home. It’s all a matter of prioritizing.

You use, you lose

Don’t put any more on the credit card than you can pay off at the end of the month. And, whatever you do, don’t keep incurring debts, warns Eric Green, certified financial planner and public accountant with Washington Trust Bank.

“Don’t pay $200 on a card, then run out and buy a VCR,” Green says.

There’s also the temptation to neglect savings during the holidays. Don’t do it. “There’s a lot of pressure to keep up with peers, to buy things and do things,” he says. “You’ve got to pay yourself first.”

Stash cash

Set up a special account for holiday spending. It’s best to start each January and sock away a little each month. Figure in costs of entertainment, gifts, clothes, even long-distance phone calls and travel.

If you haven’t already done that, sit down now and estimate what you’ll need. Then figure out how much you can put away between now and then and make adjustments where you can. You may have to make a few sacrifices now, but you’ll thank yourself later. Going, going, gone

Family members are more likely to support the holiday budget if they each have their own chunk of change to use at their discretion, no questions asked.

Says Hayes, “Even young kids should have some money to spend. They need a concept of giving, of drawing up lists and sticking with a budget.” Once the money is gone, it’s gone.

Reason for the season

Use the holidays to remind children why you celebrate.

“We’re not extravagant,” says Annette Clark, a Spokane mother of two who grew up in a family with 10 children. “We buy little things they need like clothes and a few toys.” But the real emphasis is on giving to others, through things like the Tree of Sharing.

Gifts that lift

Instead of paying cash for toys and other material goods, think creative. Trade out baby-sitting with another couple. Make decorations. Bake. Or, give the gift of time.

MEMO: This sidebar appeared with the story: WORKSHOP Michael Hayes’ free workshop, “Surviving the Holidays,” will be Nov. 29, 7 to 8 p.m., at 1912 N. Division. Space is limited, so call ahead to reserve a place, 327-3777.