The holiday season seems to be flying forward in fast motion. Black Friday sales are already live. People have used the mild weather to decorate both the outside and the inside of their homes. And some of us have already watched a movie or two and cranked the Christmas tunes. But before you speed ahead the calendar by over a month, it’s a good time to press pause and have a little chat, a Christmas financial conversation if you will.
If you’re married, these are conversations you need to have with your spouse. If you’re not, you can have a little heart to heart with yourself and/or chat with a close friend or trusted advisor. Just keep in mind, you want to talk these things through with someone whose finances you want to emulate.
The One About the Budget
I know it’s not the most fun conversation to initiate. But the entire month of December is heavy laden with unexpected expenses. While I’d hazard a guess there will be fewer holiday parties this year, you’ll still want to think through each category of spending. From Christmas cards to an increased energy bill to power those twinkling lights, you spend more at the end of the year even without the gift giving.
On Queen of Free, I have seven budget forms just for the Christmas season to help you begin to get organized. You’ll need to determine how much you want to spend in each area and track your expenses.
For more: Seven FREE Printable Christmas Budget Forms
The One About Gift Giving
Once you determine how much you’re going to spend this year, you need to break that big number down into smaller ones. And that means you may need to reevaluate who you give gifts to and how much you plan on spending. This is obviously tricky territory. And it may involve an uncomfortable conversation or two. I’d suggest reading Uncomfortable Christmas Gift Giving Conversations for tips on how to navigate this potentially sticky situation.
As a side note, I want to share that any time we’ve had what we thought might be an uncomfortable conversation, it’s been much less awkward than I thought it would be and overall well received. Sometimes friends and family members are relieved to be off the hook, too.
The One About Kids and Christmas
For many of you, I am your future. We have two daughters – an 18 year old and a 12 year old. Over the years, we’ve gotten some things right and others wrong. And our gift giving strategy has ebbed and flowed. But primarily, we’ve stuck to giving our girls 3 gifts – a piece of clothing, a book, and a WOW gift. We also do stockings (or sometimes pillow cases or bags) filled with practical items and favorite snacks. No matter how much or how little you plan on giving to your kids or the kids you love, you need to define your parameters well. Otherwise gifts mate and multiply. Out of our love for others, we can slip into the trap of buying “just one more.”
The One About Finding Extra Money & Avoiding Credit Card Debt
Especially if you haven’t planned ahead, you may find yourself behind the 8 ball when it comes to Christmas already. You’ll want to get creative and think of ways to scratch up extra cash this year. Do you have rewards points you can cash out? Is there a big bucket of change you can wrap and take into the bank? Are there odd jobs you can pick up to make seasonal income?
It’s also wise to avoid putting your Christmas expenses on credit cards. Hear me out – gifts bought by credit are not truly gifts. You’ll end up paying for those items several times over. It’s not worth putting your financial future in jeopardy to have the “perfect” Christmas. For more on making money at Christmas, read 5 Christmas Money Making Ideas.
The One About Generosity
This is my favorite topic! If you’re in the position to be able to do some end of the year giving, it’s smart to chat about this in advance. Whether you give to your favorite church or charity or fill an envelope with cash to drop off anonymously, think about who you may give to and how you’re going to do it.
It’s worth noting that you can be generous without money. You can serve and give your time. Or you can help collect donations. You can clean out your closet or cabinets. Get creative! 15 Christmas Service Projects for Families has some ideas to kick start your thinking process.
If you’re interested in more money saving strategies when it comes to this time of the year, read my eBook Keep the Happy in Your Holidays: 21 Ways to Save Time, Money, and Your Sanity This Christmas.
Our new book Your Money, Your Marriage is now available! Be sure to check out videos on managing money together on Facebook.
My book is now available: Slaying the Debt Dragon: How One Family Conquered Their Money Monster and Found an Inspired Happily Ever After. You can also check out The Debt Free Devotional
This post contains an affiliate link. That means when you get a great deal, learn about a way to save, or maybe even something for free, I may end up making a small commission. All prices are subject to change.
