Make This a Debt Free Holiday Season

David Sklar & Associates – Toronto Consumer Proposal and Bankruptcy Trustees,
Share the Lessons of Successful Debt Management

It might seem like a long way off, but successful Greater Toronto retailers have already got their Holiday Season marketing plans in place. It is only fair that as the targets of those plans, we consumers, get our Holiday Season plans in place too.

We did a very unscientific poll in our office to find out about past Holiday memories – and guess what? The most positive memories were not about expensive gifts – they were about family, and a sense of well being.

Most Holiday Season marketing is an attempt to sell family memories. We are bombarded with ads telling us that to make our families happy we should be willing to spend any amount. With this type of hard-to-resist messaging, it is understandable that come January, many people end up with crippling debt.

Part of an ongoing budget plan includes budgeting for events such as the December Holiday Season, but even if you have not yet specifically set aside money, you can still control costs and avoid debt.

How can you get wonderful Holiday memories without the debt?

Plan Ahead!

Here are some great ideas that will help you and your family enjoy the Holiday Season and avoid debt:

• Sit down (with your significant other, if applicable) and plan out how you can control costs this Holiday Season.


• Using the money you have set aside in your budget, or using cash you have readily available (don’t use credit), create a cash-only Holiday budget – and stick to it! Make this a debt free Holiday Season.


• Get your immediate family to be part of your plan by explaining why you want to make this Holiday more affordable and more fun. Get their feedback – you will be surprised at some of the great ideas they will come up with.


• Start discussing your Holiday plans with your extended family. Odds are, you will discover that they are just as tired of overspending as you are.


• Where possible: try to get all your Holiday shopping done before the end of November. This will help you and your family save money and enjoy December much more.


• Re-gifting can be a great source of family fun. One family reported re-gifting a ‘horrid’ painted bowl back and forth between family members for over a decade. Imagine the fun of not knowing if you were going to be the unfortunate recipient, or planning how to use deceptive gift wrapping to make it a surprise.


• Give Holiday Season baking – always a welcome gift.


• Make Holiday Season baking a fun family event – with everyone helping to the best of their ability. Include the baking supplies in your budget.


• Grandparents, many of whom have a huge list of grandchildren and a fixed income, can let it be known that they will only be sending Holiday gifts to children under a certain age. Giving small gifts of cash in cards addressed to each child is often a good idea. Their parents can then help the children learn how to manage money, and the Grandparents do not have to spend countless hours in department stores trying to figure out what ‘kids today’ really want.


• Teach your children to give of themselves. Their gifts can be handmade coupons for family members and can include such age-appropriate services as:
  
  
  • washing dishes,
  • giving hugs,
  • walking the dog, and
  • doing yard work.
• Give of yourself. Instead of gifts, give coupons for your services to people you know would welcome and could use some of your skills.


• Encourage your children to make their gifts. Help them to plan and organize all the required supplies.


• Make some gifts yourself. Handmade gifts are a true Holiday Time experience for the maker and the receiver. Don’t over commit yourself to gift making – the idea is to have fun, not set up a production line. Be sure to budget for supplies.


• Take in some of the ever-great Toronto Area Holiday Season events - you will have the time this year because you won’t be out frantically shopping. Budget for these outings.


• If you are hosting a large family Holiday dinner; take responsibility for the turkey, or whatever your family’s main Holiday dish is, and have everyone else bring the remaining dishes in an organized pot-luck. This is a less-stressful, more fun way to celebrate with your family. Include the food in your budget.


• Share your ideas for controlling Holiday costs with others.

How to make it work:

• Plan ahead.


• Set a cash-only budget and stick to it.


• Get your family on board with the plan.


• Enjoy being with your family during the Holiday Season!